mm

[Former Member]

explain subcontract process in mm

[Former Member]

Hi Guru,

Please refer links for the subject

http://help.sap.com/erp2005_ehp_03/helpdata/EN/f4/7d321a44af11d182b40000e829fbfe/frameset.htm

http://help.sap.com/erp2005_ehp_03/helpdata/EN/6e/6bc5e672ef11d2a7350000e82a3c24/frameset.htm

In a nut shell

1.We provide some goods/materails from our plant to venor

2. To get the finished goods/scarp as per our requirements.

Ramesh

[pankaj_singh9]

Hi,

Subcontracting Process

Subcontracting without Payment of Duty

- Creation of Subcontracting PO (ME21N)

- Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)

- Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)

- Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and autoconsumption of components with 543 movement}

- Reconciliation of Subcontracting Challan (J1IFQ)

- Completion of Subcontracting Challan (J1IF13)

- Generation of Annexure IV (J1IFR)

Subcontracting under Full Payment of Duty

- Creation of Subcontracting PO (ME21N)

- Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)

- Creation of Excise Invoice w.r.t. Transfer Posting Document (J1IS)

- Capture Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)

- Post Excise Invoice (J1IEX)

Master Data

- MM01- Material Masters for Components and FG

- XK01 - Vendor Master (Subcontractor)

- CS01 - BOM for FG

- ME11 - Purchase Inforecord for Subcontracting

Note: - Excise Transactions need to be performed only if it is applicable.

[Former Member]

HI

(I) Sub-Contracting PO: The service provider provides the part to be maintained to the subcontractor along with other components that may have to be exchanged during the subcontract rework. After maintaining the part, the subcontractor returns it to the service provider.

BOM: A complete, formally structured list of the components that make up a product or assembly. The list contains the object number of each component, together with the quantity and unit of measure. The components are known as BOM items.

You can create the following BOM categories in the R/3 System:

- Material BOM - Functional location BOM

- Document structure - Sales order BOM

- Equipment BOM

Steps involved in Sub-Contracting PO: (BOM Material will be supply from Plant)

1. BOM Material Stock to be maintain in plant.

2. BOM to be maintain for child components (or) using MB1C u2013 561 Initial entries to be made.

3. Create PO to Sub-Contractor with Item Category (L) for Sub-assembly & explode BOM.

4. Use MB1B u2013 541 Movement type issue material from Plant to Sub-Contractor.

5. Then do MIGO, MIRO.

BOM Mat. will be supply from Mat. Vendor to Sub-Contractor Vendor directly:

1. BOM to be maintain for child components.

2. Create PO to Mat. Vendor for supplying of child mat. (Choose sub-cont. vendor In Item level PO Delivery Address

Vendor SC Vendor).

3. Create PO to Sub-Contractor with Item Category (L) for Sub-assembly & explode BOM.

4. Do MIGO for child components.

5. Do MIGO for Sub-assembly to transfer mat. from sub-cont. to Plant

6. Do MIRO for both Sub-Contractor GR & Mat. Vendor GR.

Regards,

Senthil.

[former_member581212]

Hi,

Use

In subcontract order processing, the vendor receives materials (components) with which it produces the end product. The following are involved:

You order the end product using a subcontract order. The components that the vendor needs to manufacture the end product are specified in the purchase order.

In Inventory Management, the components are posted to the stock of material provided to vendor. The components are then supplied to the vendor.

The vendor performs its service and delivers the ordered material (the end product). The consumption of the components is posted.

If, after the goods receipt has been posted, the vendor informs you that a larger or smaller quantity of the components was actually consumed than planned in the purchase order, you must make an adjustment.

The vendor charges for his or her service. The invoice is posted in Invoice Verification.

Stock of Material Provided to Vendor

The quantities of the components to be provided to the vendor are entered into the stock of material to be provided to vendor. This stock has the following features:

It is managed as part of your total valuated stock, and is available for MRP.

It is only managed at plant level, since it is not stored at your own company but on the vendor's site.

Two stock types are possible:

unrestricted-use stock

quality inspection stock

Stock can be transferred between the two stock types. Withdrawals can only be posted from unrestricted stock, however.

You can take a physical inventory of the stock of material to be provided to vendor.

hope it helps...

Regards,

Priyanka.P

AWARD IF HELPFULL

[Former Member]

could you explain the sap process