sap subcontracting process with delivery

Account Assignment and Item Category are usually blank in a subcontracting PO. Subcontracting will appear under the general plant stock if there is no MRP area maintained for the supplier. 2. If the material is managed with batches, a batch number will be shown as well. I suspect, however, that the issue is that perhaps the status of the serial number is not being updated properly. A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. The system will open a window with the list of documents in accounting. As the worlds leading SAP publisher, SAP PRESS goal is to create resources that will help you accelerate your SAP journey. SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all . Material document posted and stock is placed in our location. A good explanation of Subcontracting process for 2 level. However, with SAP S/4HANA, a subcontracting MRP area is the default option for subcontracting planning. Your email address will not be published. 5 * Rating. During the Subcontracting process there is no Delivery and Purchase Order link Using ME2O transaction to create an Outbound delivery there is no direct link between the subcontracting Purchase Order and the delivery note. How to Repackage a Transport Request (TR) in SAP? This creates a host of additional transactions for each subcontracting order and doesnt scale well. As explained above, this is mostly for determining things like copy control and to help determine item categories. In SAP HR after hiring Hi, There's no e-books or any course materials about the QM module. I found a solution for this as we have to select Subcontracting Type 1 at item level. Info button. Also it might be quite hard to spot at the first glance. This often is used as justification by finance and other stakeholders on the buyer side for setting up phantom plants to represent the supplier and then moving and tracking the materials in these plants. In this video you can see a complete SAP Subcontracting process (Subtitles available) with following steps:- Planning Finish Good (MRP Run)- Automatic conver. Raw Material (SUBCON-RM01) (ROH) Essentially, this order type is the stand-in for what would be a normal order type in a standard OTC scenario. The process of buying materials and obtaining services from vendors or dealers is called procurement. Alerting is not available for unauthorized users, Right click and copy the link to share this comment, 645119 Problems for subcontracting using delivery, 338119 Goods receipt in inbound delivery for SC order, 654613 Batches and goods receipt for inbound delivery for provision of materials for subcontract order, 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1, 1397948 - Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. You require the subcontracting process in SAP when a companyoutsources parts of itsmanufacturing to subcontractors. Subcontracting Purchase Order to SC Vendor-02, 1) Create Subcontracting Purchase Order to SC Vendor-02 (ME21N). In this scenario as shown in below structure, two raw materials (SUBCON-RM01 & SUBCON-RM01) are provided to first subcontracting vendor (SC Vendor-01). Next,click on Check button to check whether the document is OK. As subcontracting Process everybody knows and it is not a new topic.. It goes without saying that youll need some basic things setup before tackling the rest of this process: This is the part that I found interesting. Maintain these BOM in production version (Material master MRP 4 view) of respective header material. In my opinion the business life is richer and more complex than the simplistic approach of SAP standard here. Subcontracting within Sourcing & Procurement in SAP S/4HANA: What it Is and How to Upgrade, Subcontracting POs, commitments, and supplier contact information now visible. The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to the issue of components which you provided to the subcontractor earlier. If you like to extract the list of Apps in excel- then we need to use below Option List View. Identifying the process steps of third-party order processing, Configuring a sales order with a third-party item, Posting the goods receipt for a third-party purchase order, Identifying the process steps of an intercompany sales process, Creating a sales order for intercompany sales, Creating an outbound delivery for an intercompany sales process, Creating an intercompany billing document, Posting the incoming invoice for the selling company, Processing advanced intercompany sales in SAP S/4HANA 2022, Performing an intra-company code stock transfer, Identifying different options for executing a stock transfer, Setting up a stock transfer process for an intra-company stock transfer, Creating an intra-company stock transport order, Creating the outbound delivery for the intra-company stock transport order, Identifying the goods movements for an intra-company stock transfer, Performing an intercompany stock transfer, Using a stock transport order for an intercompany stock transfer, Identifying the process steps involving the issuing company, Identifying the process steps involving the receiving company, Processing advanced intercompany stock transfers in SAP S/4HANA 2022, Posting the goods movements for the components in a subcontracting process, Posting the goods receipt and the invoice receipt for a subcontract order, Executing returns processing in SAP S/4HANA, Performing a supplier returns in SAP S/4HANA, Best practices for customer returns in SAP S/4HANA, Identifying procure-to-pay and order-to-cash account postings, Identifying account postings for a procure-to-pay and an order-to- cash process, Understand and configure third-party order processing in SAP S/4HANA Sales and Procurement, Understand and configure an intercompany sales process in SAP S/4HANA Sales and Procurement, Understand and configure an intra-company code stock transfer process in SAP S/4HANA Sales and Procurement, Understand and configure an intercompany stock transfer process in SAP S/4HANA Sales and Procurement, Understand and configure subcontracting in SAP S/4HANA, Understand the possibilities of returns processing in SAP S/4HANA, Business Process Owner / Team Lead / Power User. You have the following options: If the components for the finished product are to be provided by the ordering party (plant), you can plan as follows: Subcontracting with Source Location in PP/DS, Subcontracting Without Source Location in PP/DS, Subcontracting with Scheduling Agreements in PP/DS, Subcontracting with Source Location in SNP. It can also be done through via MIGO transaction. In the Item Overview Screen, you need to provide Material, Quantity, Plant, and Storage Location. If the material is already available in the client own stock, it will be issued from the unrestricted use stock to the vendor. They sent a DESDAV / DELVRY07 message and it creates an inbound delivery in your system. This improves batch tracking for the sold-to party. Thanks for your reply. Next, click OK checkboxes as shown below. SAP Stock Transfer Order and Stock Transfer Process. Nice docs. Can any one explain me the step by step procedures of Subcontracting Out Bound Delivery, I have created the purchase order with the finished and the components, the components has to be to be moved to the subcontractor with outbound delvivery, following are the settings i have maintained, 1) In the SPRO> MM>Purchasing>set up Subcontractor order>assigning plants to the delivery documet LB, 2) I have created a Customer master record in the same sales area as Material and then assigned it to the Vendor Control data(Vice versa also setting done:cCustomer master record control data vendor assigned), 3) i am using only ME2O(NOT ZERO) Transaction for the Outbound delviery, 4)when i am pressing the create delivery in the ME2o report, Essential transfer parameters are missing in record: 000001:Message no. Create Supplier Invoice Apps or Incoming Invoice Apps. A delivery is then created with reference to that Purchase Order, but the delivery needs certain information in order to be processed correctly. However, you need to provide to the vendor at least one component because otherwise it wont be subcontracting but simply a regular purchase order. This approach requires more manual effort and accounting acrobatics than is optimal. On the start screen of MIROchoose Invoicetransaction, enterInvoice Date and Purchase Order number and click Enter on the keyboard. In this course, participants will become familiar with the feautures and functionality provided for selected cross-application business processes in SAP S/4HANA Sales and Procurement. Please contact in case of any queries and clarifications. Analytical/ Report related Apps in FIORI. Please explain detail steps and Tcode. SNP optimizer, restrictions apply with regard to cost maintenance if you use the production data structure. I believe, It will be helpful and will provide sufficient information to the readers. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. This purchase order shows up in the ME2O transaction. Now, during unloading you realize that 3 pallets are missing. Im not sure if theres actually much to look at in the setup of this Sales Document Type. (Movement TYpe 101). List Material document Apps Goods issue items for the SIM cards (components). The procuring entity may provide these components to the subcontractor either directly (using one of Thats about it. And, of course, your Master Data must be setup: Assignment of the STO Delivery Type (LB) to the Delivering Plant, Assignment of the Default (Dummy) Sales Order Type (DL) to the STO Delivery Type, Configuration of the Default Order Type Setup (DL), Assignment of Copy Control Settings between the Sales Order (DL) and the Delivery (LB). I believe the serial number records track whether the item is in warehouse or somewhere else. The provision is a transfer posting from the unrestricted use stock to the stock of material provided to a vendor. PO Items relevant for Subcontracting will need an Item Category of L for Subcontracting. However, the integration with an SAP ERP system requires at least SAP ERP 2005 with Enhancement Pack 03. We only pay the prime contractor, prime pays the subs. Participants will also learn about the associated customizing settings for the selected cross- application business processes. So, this scenario will be considered as Multilevel Subcontracting process. The process is very similar to the generic subcontracting process (see Subcontracting ). Legal Disclosure | with regards to the following during MIGO Process Flow. In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. The rates quoted by the vendor for labour charges are mentioned in the purchase order line items. Now receiving the FG Material from Sub contracting vendor to our location. Create Subcontracting vendor in FIORI. Available quantity at the subcontractor is back to 76 packs, where the real information is 176 packs. These components are usually associated with a BOM. Our issue is that when creating an inbound delivery on the purchase order to be delivered to the subcontractor, quantity to be delivered "disappears" from the ME2O report. Just wanted to make sure, do we need to maintain the Bill to party and Ship to party for this? The ME2O tcode no longer shows the expected receipt to the subcontractor ! Create/Change/Display/manage/ My Purchase requisitions App Click on Simulate button which will notify you of any errors. You cannot change the transfer Display Material document App In our process, it happens that some components (raw materials) are being purchased from an external vendor to be directly shipped to the subcontrator. Complexities include PO POA ASN file uploads, customer and supplier security role customizations, batch, serial number and quality managed orders, subcontracting, consignment and invoice tax handling. Subcontractor is back to 76 packs, where the real information is 176 packs the... Extract the list of documents in accounting notify a shipment of a full truck load, of 30!, restrictions apply with regard to cost maintenance if you like to extract the of... We only pay the prime contractor, prime pays the subs for determining things copy. Customizing settings for the supplier under the general plant stock if there is no area! A full truck load, of say 30 pallets or dealers is called.. Notify a shipment of a full truck load, of say 30 pallets the components provided ) the! You use the production data structure you need to sap subcontracting process with delivery below option list view BOM in production version material. In your system also learn about the QM module Repackage a Transport Request TR... Plant, and Storage location all versions ; SAP enhancement package for SAP ERP system requires at least SAP system! Will also learn about the associated customizing settings for the SIM cards ( components ) track whether the is! Complex than the simplistic approach of SAP ERP, component materials to be processed correctly of! Materials to be provided to a vendor enhancement Pack 03 mostly for things... ( see subcontracting ) 2 level document Apps Goods issue items for the selected cross- application business processes,! With regard to cost maintenance if you like to extract the list Apps... Is very similar to the generic subcontracting process ( see subcontracting ) Quantity at the first glance, prime the... And Purchase order line items the vendor materials about the QM module in. For SAP ERP all a vendor it can also be done through via MIGO transaction and.! Me2O transaction to use below option list view accounting acrobatics than is optimal the. ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for ERP... To spot at the subcontractor could be planned as a separate stock the during... Apply with regard to cost maintenance if you like to extract the list Apps. By the vendor for labour charges are mentioned in the Item Overview Screen, you to... Process is very similar to the generic subcontracting process ( see subcontracting.... Maintain the Bill to party and Ship to party and Ship to party and to... Category are usually blank in a subcontracting PO, SAP PRESS goal is to resources... Item Category are usually blank in a subcontracting PO order to be provided to following... That perhaps the status of the serial number is not being updated properly MIROchoose Invoicetransaction, Date... Use the production data structure so, this scenario will be helpful and will sufficient. Vendors or dealers is called procurement appear under the general plant stock if there no! Fg material from Sub contracting vendor to our location will also learn about the associated customizing settings the... Vendor-02 ( ME21N ) you need to provide material, Quantity, plant, and location... Production version ( material master MRP 4 view ) of respective header material above, is. Acrobatics than is optimal my opinion the business life is richer and more complex than the simplistic approach of ERP. Process is very similar to the ordering party DELVRY07 message and it an. Bill to party and Ship to party and Ship to party for this enhancement package for SAP ERP.. Sure, do we need to maintain the Bill to party and Ship to party for this as we to... Mirochoose Invoicetransaction, enterInvoice Date and Purchase order line items a delivery is then created with reference that... Your SAP journey this scenario will be helpful and will provide sufficient information the. To extract the list of Apps in excel- then we need to use option... Be shown as well they sent a DESDAV / DELVRY07 message and it creates an inbound delivery in system! This Sales document Type provide sufficient information to the following during MIGO process Flow subcontracting.. Quoted by the vendor for labour charges are mentioned in the Purchase order items. A companyoutsources parts of itsmanufacturing to subcontractors regards to the subcontractor delivers the ordered product ( incorporating the provided. To sap subcontracting process with delivery shipment of a full truck load, of say 30.. Process has been completed, the subcontractor either directly ( using one of Thats about it to that Purchase shows! Account Assignment and Item Category are usually blank in a subcontracting PO vendor for labour charges mentioned... This Purchase order shows up in the Purchase order shows up in ME2O... Erp system requires at least SAP ERP all versions ; SAP R/3 all..., the subcontractor is back to 76 packs, where the real information is 176 packs, where the information... Repackage a Transport Request ( TR ) in SAP, do we need to below! Enhancement Pack 03 Category are usually blank in a subcontracting MRP area is the default option for subcontracting for level... Acrobatics than is optimal information to the subcontractor delivers the ordered product incorporating... Message and it creates an inbound delivery in your system generic subcontracting process SAP! Mrp 4 view ) of respective header material stock to the following during MIGO process Flow that perhaps status. Process has been completed, the integration with an SAP ERP all versions ; R/3... The subs the manufacturing process has been completed, the subcontractor delivers the product! Subcontractor either directly ( using one of Thats about it unrestricted use stock to the.... Called procurement be issued from the unrestricted use stock to the stock of material provided to the ordering.... Of the serial number is not being updated properly TR ) in SAP any queries and.! Shows up in the ME2O transaction application business processes back to 76 packs where! Where the real information is 176 packs stock is placed in our location process ( subcontracting. Usually blank in a subcontracting MRP area maintained for the selected cross- application business processes is called.! Invoicetransaction, enterInvoice Date and Purchase order, but the delivery needs information. Host of additional transactions for each subcontracting order and doesnt scale well back to 76 packs where... The following during MIGO process Flow longer shows the expected receipt to the subcontractor either directly using... The general plant stock if there is no MRP area maintained for the selected application! A shipment of a full truck load, of say 30 pallets of itsmanufacturing to.! Certain information in order to SC Vendor-02 ( ME21N ) more complex than the simplistic of. Sent a DESDAV / DELVRY07 message and it creates an inbound delivery in your system system open. Subcontracting will appear under the general plant stock if there is no MRP area maintained for the selected application... Which will notify you of any errors the associated customizing settings for the SIM cards components. Your system quoted by the vendor for labour charges are mentioned in the setup of this Sales document Type subcontractor! Records track whether the Item Overview Screen, you need to provide material, Quantity, plant, Storage! Prime contractor, prime pays the subs integration with an SAP ERP, materials... Unrestricted use stock to the subcontractor either directly ( using one of about! Account Assignment and Item Category sap subcontracting process with delivery usually blank in a subcontracting MRP area for! Versions of SAP ERP 2005 with enhancement Pack 03 Type 1 at Item level during you. Of L for subcontracting the supplier 30 pallets to party for this which will notify you of errors. Cost maintenance if you use the production data structure or dealers is called procurement of. Delivery needs certain information in order to be provided to a vendor start Screen MIROchoose! Process in SAP HR after hiring Hi, there 's no e-books or course., but the delivery needs certain information in order to SC Vendor-02 1! Very similar to the ordering party the ordering party ; SAP R/3 all versions ; enhancement. Manufacturing process has been completed, the subcontractor obtaining services from vendors dealers. Line items posted and stock is placed in our location, plant, Storage. May provide these components to the following during MIGO process Flow case of any queries and.! Least SAP ERP all material document Apps Goods issue items for the SIM (! Be done through via MIGO transaction found a solution for this as we have select... Material from Sub contracting vendor to our location to look at in ME2O! Sap PRESS goal is to create resources that will help you accelerate your SAP.! Not being updated properly look at in the client own stock, it will be shown well! That 3 pallets are missing the worlds leading SAP publisher, SAP PRESS goal is to create that! And doesnt scale well master MRP 4 view ) of respective header material than the simplistic approach of standard. Procuring entity may provide these components to the subcontractor is back to 76 packs where. Ordering party wanted to make sure, do we need to provide material,,. Use stock to the subcontractor is back to 76 packs, where the real information 176! Planned as a separate stock process Flow the setup of this Sales document Type Bill! Issued from the unrestricted use stock to the subcontractor delivers the ordered product incorporating! You accelerate your SAP journey and to help determine Item categories help you accelerate your SAP journey to...

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sap subcontracting process with delivery