15.
Advanced Subcontracting Configuration (S/4HANA Context)
ubcontracting is a core process where you provide components to a vendor, who then
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manufactures a final product for you. Configuration is crucial for correct inventory and cost
accounting.
15.1. Prerequisites
● I tem Category L (Subcontracting):Ensure this is correctly configured in the standard
system.
● Bill of Materials (BOM):The finished product must have a BOM (T-code: CS01/CS02)
that lists all the components you will provide. This is a PP integration point.
15.2. Automatic Account Determination (OBYC) - Critical Step
his is the most important configuration. When components are consumed at the
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subcontractor's location, the system needs to know which G/L accounts to post to.
ath:SPRO → Materials Management → Valuation and Account Assignment → Account
P
Determination → Account Determination Without Wizard
Transaction:OBYC
. Change in Subcontractor Stock (BSV Key):
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This transaction handles the offsetting entry for inventory postings for components consumed
from subcontracting stock. It is typically a debit and credit to the same consumption account.
● Chart of Accounts:CAUS
● Transaction Key:BSV
● Valuation Grouping Code:0001
● Valuation Class (of Component):3000 (Raw Materials)
● G/L Account:500000(Material Consumption)1
B. Subcontracting External Service (FRL Key):
his transaction handles the cost of the service performed by the subcontractor (the job work
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charges), which is booked during the Goods Receipt of the finished product.
● Chart of Accounts:CAUS
● Transaction Key:FRL
● Valuation Grouping Code:0001
● Valuation Class (of Service):(Leave blank, as it's not material-specific)
● G/L Account:510000 (New G/L for Subcontracting Charges)
1 6. Advanced Stock Transport Order (STO) Configuration (S/4HANA
Context)
n STO is the proper way to handle stock transfers between two plants within the same or
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different company codes. It involves MM, SD, and LE modules.
16.1. Define Shipping Data for Plants
ere, you set up each plant's shipping-related data. For STOs, the receiving plant is treated
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like a "customer" and the supplying plant is the point of shipment.
ath:SPRO → Materials Management → Purchasing → Purchase Order → Set up Stock
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Transport Order → Define Shipping Data for Plants
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● elect Supplying Plant:1010 (Main Production Plant)
● Key Fields to Fill:
○ Customer No. - Plant:CUST_1010 (A customer master must be created by the SD
team representing this plant)
○ Sales Org.:1000
○ Distr. Channel:10
○ Division:00
16.2. Assign Delivery Type and Checking Rule
This step links the MM Purchase Order (STO) to the SD Outbound Delivery.
Path:SPRO → Materials Management → Purchasing → Purchase Order → Set up Stock
Transport Order → Assign Delivery Type and Checking Rule
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● lick "New Entries"
● Key Fields to Fill:
○ Document Type:UB (Standard STO Document Type)
○ Supplying Plant:1010
○ Delivery Type:NL (Replenishment Delivery)
○ Checking Rule:B (SD Delivery)
16.3. Assign Document Type, One-Step Procedure, Underdelivery Tolerance
efine which plants can use which STO document types and if the transfer is a one-step or
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two-step process.
ath:SPRO → Materials Management → Purchasing → Purchase Order → Set up Stock
P
Transport Order → Assign Document Type...
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● lick "New Entries"
● Key Fields to Fill:
○ Supplying Plant:1010
○ Receiving Plant:1020 (Assuming a second plant exists)
○ PO Document Type:UB
○ One-Step:(Leave unchecked for a standard two-step process: Goods Issue from
supplying plant, then Goods Receipt at receiving plant)
17. Advanced Import Procurement Configuration
his involves handling planned delivery costs like customs duties, freight, etc., which are
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known at the time of PO creation and are added to the material's inventory value.
17.1. Create Condition Types for Customs/Freight
ath:SPRO → Materials Management → Purchasing → Conditions → Define Price
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Determination Process → Define Condition Types
● Click "Copy"on an existing freight condition like FRB1.
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reate New Condition Type:
○ Condition Type:ZBC1
○ Description:Basic Customs Duty
○ Key Control Settings:
■ Condition Class:B (Prices)
■ Calculation Type:B (Fixed Amount) or A (Percentage)
■ Condition Category:B (Delivery Costs)
■ Accruals:Check this box. This ensures the value posts to a separate clearing
account.
17.2. Update Pricing Schema
dd your new condition types to the pricing procedure. We will add it to the standard schema
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RM0000.
ath:SPRO → Materials Management → Purchasing → Conditions → Define Price
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Determination Process → Define Calculation Schema
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● elect Schema:RM0000 and go to "Control data".
● Add New Step:
○ Step:45 (A new step after NAVS and before Tax)
○ Counter:1
○ Cond. Type:ZBC1
○ From / To:(Leave blank)
○ Statistical:(Leave unchecked)
○ Accrual Key:FR1 (Or a new key like ZC1)
17.3. Account Determination for Customs (OBYC)
Assign a clearing account for your customs duty.
ath: SPRO → Materials Management → Valuation and Account Assignment → Account
P
Determination → Account Determination Without Wizard
Transaction: OBYC
● Chart of Accounts:CAUS
● Transaction Key:FR1 (Freight Clearing, assuming you used this accrual key)
● Valuation Grouping Code:0001
● Valuation Class:3000 (Raw Materials)
● G/L Account:191200 (New G/L for Customs Clearing Account)
18. Key S/4HANA Considerations (Mandatory Changes)
This section is to be read as a layer on top of all other configurations.
● B usiness Partner (BP) is Mandatory:
○ Concept:Vendor and Customer masters are obsolete. You must use the transaction
BP to create a Business Partner first.
○ Configuration Impact:You assign a "BP Role" to the BP to extend it as a vendor. The
key BP Roles are FLVN00 (Company Code Data) and FLVN01 (Purchasing Data). Your
Vendor Account Group configuration in OMSG must be linked to these BP Roles.
● Material Ledger (ML) is Mandatory:
○ Concept:In ECC, ML was optional. In S/4HANA, the Material Ledgermust be active
for all materials for inventory valuation.
○ Configuration Impact:Ensure ML is active for all valuation areas. Path: SPRO →
Controlling → Product Cost Controlling → Actual Costing/Material Ledger → Activate
Material Ledger for Valuation Areas. This is one of the very first steps in a new
S/4HANA implementation.
● MATDOC - The Single Table for Inventory:
○ Concept:All material movements that previously created documents in MKPF and
MSEG tables now post to a single, comprehensive table: MATDOC.
○ Configuration Impact:This is an architectural change, not a direct configuration
step for MM. However, as a consultant, you must know that all custom reports and
analytics must now be built on MATDOC (or the corresponding CDS Views), making
them incredibly fast and simple.
● Fiori Apps - The New User Experience:
○ Concept:While the backend SPRO configuration remains largely the same, the
end-users will not be using ME21N, MIGO, etc. They will use Fiori Apps.
○ Examples:"Manage Purchase Orders," "Post Goods Receipt for Purchase Order,"
"Manage Stock." As a consultant, you must be familiar with the key apps for your
processes and ensure the relevant Fiori catalogs and groups are assigned to user
roles.