Hi SAPians,
Introduction:
First let’s have a short introduction and overview of the functionality of
the "Subcontracting Process in Production Planning".
SAP Subcontracting involves sending components to a vendor to manufacture an assembly.
The vendor returns the completed assembly, and during goods receipt GR, the components
are issued from subcontract inventory. Subcontracting is a purchasing process with the
manufacturing occurring at the vendor location.
There are two types of subcontracting process in production planning.
[Link] Subcontracting
[Link] Subcontracting
Assembly Subcontracting:
Scenario:
Due to some capacity problems or operational issues in manufacturing plant entire
product is asked to produce outside (which mean vendor place) and component materials are
given to vendor with a subcontracting purchase order.
Vendor produces a product and supplies the product to Plant.
Process flow - Assembly Subcontracting
Make configuration settings for special procurement key.
Configuration Path: spro > Production > MRP > Master data > Define special
procurement type.
Make settings in header material master of MRP View 2 of subcontracting in MM02.
Create the master data which related to production like BOM, Resource, Master recipe,
[Link] for header material.
Give the requirement for planning in MD61 Screen.
MRP Run for header material in MD02 Screen.
Converted generated PR to PO in MD04 Screen.
For converting PR into PO 1st release the PR using Release [Link] tile (ME54N)
Enter PR number generated in MD04 screen.
Move to the release strategy tab enable the tick mark.
After release save the [Link].
Now convert the process as PR into PO.
Purchase Order will be created.
Issue the components to PO material in MIGO Screen using 541 Movement type
541 Mvt type – Transfer the stock from unrestricted to subcontracting stock.
Check and post the component.
Now check for the stock of the raw materials in MMBE they will be shown as Stock
provided to vendor as below.
Goods receipt for header material in MIGO Screen. Enter the cost center for each
material, after check and post the document.
Now check for the stock of the Header material in MMBE.
Operation Subcontracting:
Scenario:
In house production material (Header material) is produced with three operations out of
which second operation is performed outside (provided to vendor) due to various reasons
like Machine breakdown, capacity problems.
Example: BOM of the material contains three components. First operation uses first
component, second operation which is performed externally, uses second component and
Third operation uses third component.
Scenario for Operational Subcontracting
Process flow - Operational Subcontracting
Create BOM for header material as shown below with CS01 with the components as
input materials.
Create routing for material with three operations and for second operation
assign control key PI02 (external Operation) and no need to maintain the work
center for the second operation.
Assign the component materials to the respective operations. For the second operation
enable subcontracting box assign external processing parameters...like details of Purch.
Organization, Purchasing group, Material Group and others as per the requirement.
Create the production/ process order for the header material with CO01 or COR1.
Release and save the order.
Move to operation tab.
Double tab the external operation.
Check for the generation of Purchase Requisition in the Ext. Processing Tab.
Move to the material list tab choose the material which you have to process as external
processing and select the symbol which called reassign and assign the external
operation item number and save it.
By using PR which generated in External processing tab convert PR into PO Process.
Issue the First and Third components to production order using transaction code MIGO.
Check and post the document.
Confirm the first Operation with transaction COR6N/CO11N after completion of the
same as shown below and save.
Now issue this component to the purchase order with movement type 541 through
transaction MIGO as shown below. Check and post the document.
Now check the stock of second component appearing as Stock provided to vendor.
Once the second operation completed by the vendor semi-finished product is sent back
to plant for execution of third operation.
Now make GR for material with the purchase order with 101 movements and during this
GR second component.
Stock is consumed which is provided to vendor.
Now confirm the Third Operation in the Production Order.
Make the goods receipt for the order through MIGO.
Now check the stock in stock overview for header material.
Conclusion:
I hope this is useful for all of our community Team members regarding MRP related Fiori Apps.
I believe, it will be helpful and will provide sufficient information.
Thanks For Reading. Please share your reviews & feedback…
Thanks & regards,
Subathra Priya R.
SAP PP- QM- PM Consultant.
SAP Managed Tags:
RISE with SAP,
SAP S/4HANA Cloud for Manufacturing