Third party- Subcontracting using SC Vendor concept
Introduction
The following scenario can be used where the third party supplier need to get the semi-finished material from a subcontractor --> assemble/configure again and then deliver it to the customer directly.
Master data - For Example
Master Data | Value | Comments |
Material | Computer | Finished material |
Material | Monitor | Semi- finished material |
Material | RAW12 | Raw material |
Vendor | VENDOR | Third party Vendor |
Vendor | SC_VENDOR | Subcontracting vendor |
Customer | Z06_CUST | |
BOM | BOM – COMPUTER Component - Monitor | BOM1 |
BOM | BOM – Monitor Component – RAW12 | BOM2 |
Info Record | Info record created for Computer- |
Configuration Steps :
Customizations required at Sales and Distribution :-
For the Item category group ERLA , the system shows price for the BOM item but not for components.
For this following customizing setting is required.
- The item category of BOM item is TAQ, which is relevant for pricing, so the BOM is priced.
- The item category of components is TAE which is not relevant for pricing, so the components are not priced.
1. Check item categories.
In Customizing for Sales and Distribution choose Sales --> Sales Documents --> Sales Document Item --> Define Item Categories.
Example: Item category
Item Category | Description | Comments |
TAQ | Item category of BOM item | Relevant for pricing, so the BOM is priced |
TAE | Item category of components | Not relevant for pricing, so the components are not priced. |
2. Check whether item category group to be maintained in Material master is created
For the BOM item/Finished material maintain the item category group as ERLA .
In Customizing for Sales and Distribution choose Sales --> Sales Documents --> Sales Document Item --> Define Item Category Group
3.Check whether the item categories are assigned to sales order type.
In Customizing for Sales and Distribution choose Sales --> Sales Documents --> Sales Document Item --> Assign Item Categories
4. Define Schedule Lines
In Customizing for Sales and Distribution choose Sales ® Sales Documents ® Schedule Lines ® Define Schedule Line Categories
Inorder to create the purchase requistion, maintain the Order type, item category and account assignment.
The mapping of item category (from 3 to L) can be found in IMG: MM->Purchasing->Define External Representation of item categories.
The definition of account assignment category can be found in IMG: MM->Purchasing->Account assignment->Maintain account assignment categories
5. Assign the Schedule lines to the item category
In Customizing for Sales and Distribution choose Sales --> Sales Documents --> Schedule Lines --> Assign Schedule Line Categories
Configurations to be maintained in Material Master
1.Go to MM02 --> Enter the finished material ( COMPUTER ) -->Choose the sales org.2 View --> enter the organisational data --> Maintain the item category as ERLA.
2. While creating Bill of Material , maintain the BOM usage as 5 ( Sales and Distribution ).
Process
1. Create third party sales order via tcode VA01
Note down the Purchase requisition number from schedule line
tab from sales order ( VA03 )
Go to item details of the BOM material ( COMPUTER ), check the schedule line category.
By Default , schedule line CP will be maintained change it to ZN.
2. Create Purchase order for the product/finished material COMPUTER
Purchase Order can be created via
- Convert Purchase Requisition to Purchase Order ( ME59N )
- Create Purchase Order with repect to Purchase Requistion ( ME21N )
3.SC Stock Monitoring for VENDOR via ME2O
Monitor the material/Component MONITOR which is transferred to the third party vendor VENDOR
4. Create a Purchase Order for the Sub-component MONITER via ME21N
- As the material MONITER needed to be configured/assembled
by the subcontracting vendor SC_VENDOR and to be delivered at third party
vendor VENDOR, Create a subcontracting PO for the material/component MONITER. - Note :- Go to Item details --> Delivery address --> Enter Vendor
and check mark the indicator SC Vendor
5. SC Stock Monitoring for SC_VENDOR via ME2O
Monitor the raw material/component RAW12 at SC_VENDOR
6.Create Transfer Posting w.r.t Purchase Order via MIGO (A08/R01) Mvt Type 541
Do a transfer posting for the subcontracting Purchase Order to transfer the component RAW12 to SC_VENDOR
7. SC Stock Monitoring for SC_VENDOR via ME2O
Monitor the component RAW12, now it’s available at SC_VENDOR
8. Post Goods Receipt for Purchase order with sub-components
Now the Semi-finished material MONITER is assembled and need to be transferred to the third-party vendor VENDOR.
Material MONITER will be posted against 101 mvt.type and component RAW12 will posted against 543 mvt.type with Special
indicator O (GI issue subc. Stock).
Semi-finished material MONITER will be delivered at third-party vendor VENDOR.
9. SC Stock Monitoring for VENDOR via ME2O
In ME2O , Component/material MONITER is now at third-party VENDOR’s stock
There will not be any stock under the subcontracting vendor SC_VENDOR as its moved to VENDOR
10. Post Goods Receipt for Purchase order with finished material
Once the material/product computer is manufactured/assembled using the component MONITER, Post a Goods receipt ( 101) for Third
party PO.
From MM side, Invoice can be created for the two Purchase orders created.
From SD side , Billing document can be created for third-party sales order.
Regards,
Sheetal
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