How to set up a buy/sell subcontracting in SAP?

[Former Member]

Hi,

There is a standard oracle solution on how to set up a buy/sell subcontracting  (Simulated manufacturing organization that does not generate GL postings). https://docs.oracle.com/cd/E18727_01/doc.121/e13615/T462251syoverview.htm

Does a similar solution exist in SAP? I only could find subcontracting with chargeable components, but no buy/sell in SAP.

Please share how you address buy/sell subcontracting in your organization.

Thanks!

Marina

[former_member184574 · Accepted solution]

Hi Mara,

I am not sure of this buy/sell subcontracting you are talking about. Can you clarify a bit further on this process.

SAP supports following two types of subcontracting process. Kindly check the links provided and revert are they one you are looking for or some other ones ??.

1. Assembly subcontracting

2. Operation subcontracting.

Hope this helps..

Thanks

Kumar

[former_member184752 · Accepted solution]

This message was moderated.

[Former Member · Accepted solution]

Thanks for your response, Kumar.

The buy/see scenario refers to the following process:

- OEM sells component B to a subcontractor on a premise of buying it back as a part of finished product. (the components might be purchased from other supplier or produced at OEM factory).

- Subcontractor takes possession of component B when it's received at subcontractor's location.

- Subcontractor procures other non-OEM component C on its own and completes finished product assembly A

- Subcontractor owns finished product A until OEM purchases finished product back to resell it to a customer

- Subcontractor ships finished product A from its location directly to OEM customers.

The trick is OEM can't report components sales B as a revenue. Any Idea what GL postings for component invoices might look like?

The Oracle ERP solution suggests that GL postings get omitted for component B sales, but I am not sure what is an appropriate SAP solution for this scenario. What is your take on it?

Thanks a lot, Kumar,

Mara

[Former Member · Accepted solution]

Hi Kumar,

I am wondering what is the right way to record inventory for components that were sold to a subcontractor and later will be repurchased as a part of finished product.

[JL23]

In SAP it is called Subcontracting with Chargeable Components - SAP Library

You need to activate a business function and then you get a new customizing task in IMG to do your settings. Follow the link above for the details

[Former Member]

Thanks for the info, Jurgen!

Do you know if the components ownership gets transferred to a subcon under Subcontracting with Chargeable Components? How can I see GL postings for this process?

My scenario is:

- OEM sells component B to a subcontractor on a premise of buying it back as a part of finished product. (the components might be purchased from other supplier or produced at OEM factory).

- Subcontractor takes possession of component B when it's received at subcontractor's location.

- Subcontractor procures other non-OEM component C on its own and completes finished product assembly A

- Subcontractor owns finished product A until OEM purchases finished product back to resell it to a customer

- Subcontractor ships finished product A from its location directly to OEM customers.

We can't post component B sales as revenue since it's going to be repurchased and sold as a part of finished product A later. Not sure that the correct settings should be for component B invoices...

Thank you in advance,

Marina