SAP MM – : Subcontracting Process
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Sub-contracting
Parent Material- Final finished product
Furniture
Child material- sent to vendor for subcontracting process
For wooden chair, paint,
Example-
1) Furniture----chairs 4 chairs (semifinished) -----sent to vendor (Painter)
2) Raw iron ------------- sent to vendor to make finished nut & bolt.
Here Raw iron – Child material
Parent material- finished nut & bolt
3) Assembly Process
Child material - SF1, SF2, SF3
Parent material- F123
Sub-contracting Process
This is Process in which the Company will send some or all the
Components to Sub-contracting Vendor, he will fulfill the requirement
by doing the activities like Painting/Assembly/Over hauling/ servicing
etc. After the work is done by the Vendor, the Company will receive
the finished goods and settle the Invoice.
9 Steps
Step1)-Create Subcontracting Material Master
TC- MM01
Step2)- Create Subcontracting vendor master
T.C- XK01
Step-3)- create subcontracting PIR (optional)
Step-4)- Create BOM ( Optional)
Step-5)- Create Subcontracting PO for finished Product(
Parent Material)
Step-6)-Goods Issue to subcontractor
Step-7)- Check Stock Overview
Step-8)-Goods Receipt for finished product
Step-9)- Invoice receipt for the service performed
Create MMR with Semi finished (HALB)– and take the Stock by
creating PO and doing GR
Step1)-Create Subcontracting Material Master
TC- MM01
Create MMR with Finished (FERT)and don’t take any stock
Step2)- Create Subcontracting vendor master
T.C- XK01
Step-3)- create subcontracting PIR (optional)
T.C – ME11
Create Sub-contracting Purchase Info- Record – TC –ME11 – Info
Category – sub-contracting – This is Optional
Step-4)- Create BOM ( Optional)
BOM – Bill of Materials – The combination of components to form
another Product is called BOM –
Example –
Car requires different components like doors-4,Wheels – 4,Axle -
1,Engine-1
TC-CS01
Then Create BOM –TC –CS01
Click save.
Step-5)- Create Subcontracting PO for finished Product(
Parent Material)
Create Subcontracting Purchase Order for Finished – TC – ME21N
Item Cat – L- Sub
contracting
In Item details –Material data – Click components button and
enter the Components you want to send to Vendor-
Also enter Tax code in Invoice Tab
Click back and click check and save.
Standard PO created under the number 4500018848
Step-6)-Goods Issue to subcontractor
Transfer the Components to sub-contracting Vendor –
TC –ME2O
Click execute
Step-7)- Check Stock Overview
Stock overview after sending the Components –
TC –MMBE
Step-8)-Goods Receipt for finished product
Goods Receipt for Finished goods –
TC –MIGO –GR –PO – mov type – 101
In this 6 Accounting Postings will happen.
Step-9)- Invoice receipt for the service performed
1. Invoice Verification –
TC –MIRO.- PO
Student Dharma- Practice Sc procurement at least 10 and send PO
Display –me23n