drop ship over to customer premise for subcontracting scenario

[Former Member]

Hi

Question:

I have a subcontract purchasing order issue to a
subcontractor for subcontract service. My requirement is to have the final
finish product sent over to my customer (i.e. drop ship to customer premise), instead of sending the goods to our premise.

Standard SAP is using movement type 101 and 541 to receive the completed subcontract product into our premise, but how to execute in the
system if I want the subcontractor to send over to my customer?

Do you face this process and how to do this in R/3?

Regards,

Tuff

[JL23 · Accepted solution]

fully integrated is this drop shipment only possible with Business function outsource manufacturing LOG_MM_OM_2

other alternatives may depend on what you actually need. E.g. if you need paper work coming from an outbound delivery to get it to your customer.

for this case we just created an extra  storage location and shipping point for the subcontractor. Received the subcontracted material into this storage location and shipped it with a normal outbound delivery to the customer.

[Former Member]

We have this scenario...we do a virtual GR into our plant and process a virtual delivery so we can pay the vendor and bill the customer correctly. Because drop ship are not the normal scenario we treat it as a "one off "and do virtual steps for billing and proper component consumption's.

so we save on the shipping and handling because we don't physically receive the stock and we still get our invoices without and system modifications.

[Former Member]

This message was moderated.

[Former Member]

Interesting scenario. I believe you will have to create two PO's

1) Create sales order with drop ship which will create PR and PO .Item category "S". This way you will have the SC vendor send the finished product to customer directly.

2)Create a seperate PO for subcontract with item category as "L" and have the components sent to the SC vendor to produce the finished item. This will capture the sub contracting charges which will be different from the actual cost of selling it through SC vendor to customer.You will probably have to make GR as statastical when you receive the finished material from SC vendor. This process will capture the SC charges and invoice clearing for SC process.

Above is just a suggestion, not sure if it is a best practise as it looks to be lengthy process, but please do let us know how finally you have achieved this.

[Former Member]

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[former_member619089]

Hello Daniel,

You can try this option provided by SAP standard. as mentioned in the screenshot you can select the Address of the the customer in the field address in the Delivery address tab at item level of the screen of ME21N.

Regards

Harry

[former_member197616]

Hi,

Have you tried the Subcontracting PO with item category L and with the components provided with the address number provided for the customer to be directly sent in the delivery address Tab ?and check ?

Regards,