Configuration settings for subcontracting

[Former Member]

Hi,

please explain the configuration settings for subcontracting.

Regards,

Nisha

[Former Member]

Hi,

(1) You have to create material in MM01(Finished Goods ,mat type FERT) that can be procured externally, and you have maintained BOM (CS01) with components (Raw Materials , Mat type ROH). Any waste generated as scraps or by products received during subcontracting process can be maintained as component with negative quantity or in % basis in the BOM in CS01.

(2) Create a subcontracting PO (ME21N, Item Category L). Maintain Purchase Info Record (ME11)for Subcontract category for material and subcontractor.

(3) You make a transfer posting to issue components(Raw Materials) for SC PO(In ME2O directly or by MB1B with 541 Movement type). Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor" .So no accounting document generated by supplying raw material to Sub Contracting Vendor.

(4) You receive (MIGO) finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products.

There are three events, so three accounting entries are generated:

FG BSX acc. Debit Acc.

GR/IR Cle.acc. WRX acc. Credit Acc.

FRL Acc. Debit Acc.

BSV acc. Credit Acc.

BSX acc. of components Credit Acc.

GBB - VBO Acc. Debit acc.

PRD acc. Some time Credit &

Some time Debit

(5) Invoice Verification (MIRO) for SC Invoice.

(6) Payment in F-53

If you are activate Price Diff. Acc. for SC-Vendor in....

OLMB -

---

> GR -

---

> Price diff. acc.for SC order while you do GR for your Plant......then Price Diff. Acc. also will be triggered...

[Former Member]

Dear,

Prerequisites : BOM by CS01, SC Info Record by ME11. Components' stock should be available. CIN related master data such as Material Assessible Value, Chapter ID, Material and SC Vendor should be declared for Subcontracting etc in J1ID,

1) Raise PR by ME51N and release by ME54 if required. Raise SC PO by ME21N and release if required by ME29N.

2) Issue Components to Subcontractor by MB1B with Mvt Type 541. wrt po

3) Raise SC Challan by J1IF01 referring the material document created by MB1B. SC Challan can be printed by J1IP.

4) Do Goods Receipt for Main Matl by MIGO.We can observe components consumed with 543 Mvt Type by clicking + sign in the item level of main item.

5) Reconcile the SC Challan by J1IFQ. Here refer the MB1B Matl document and assign the reconciled qty.(This will be same as SC Challan if no subsequent adjustments

For eg.).you are sending Materials A,B.C & D to your SC-Vendor and he is doing the Assembly job work and Getting back the Assemble finished Product : F from SC-Vendor...

First,

Create 4 materials A,B,C & D with material type: ROH or HALB...

Then Create Material F with material Type: F with material type: FERT..

Then follow the following steps:

1) Create BOM in T.Code:CS01 for the Finished Product: F and in Components list, Give the Components A,B,C & D...

2) Create Sub Contracting Info record for the SC-Vendor-Finished Product: F for SC-Vendor's Service Charges...in T.Code: ME11

3)Create SC-PO to the Subcontracting Vendor in T.Code:ME21N with Item Category L ....In PO ---> Item Details ---> Material Data -> Components List->< It will automatically Explode the Components A,B,C & D which you have to send to SC-Vendor for making the Finished product: F...

4) In T.Code:ME2O ---> Send the Components A,B,C & D to the SC-Vendor and Note down the Material Document No:

5) Then Take SC-Challan Printout in T.Code: J1IF11

5) After completion of work at SC-Vendor....Gert back the Finished Product: F in T.Code:MIGO useing 101 Movement type..

that time....the Components A,B,C & D will be automatically consumed in 543 O - Movement type...

Generally while doing subcontracting 6 accounts will trigger.

1. Stock Account (finished Account) BSX - Debits

2. GR/IR clearing Account WRX - Credits

3. Change in Stock Account BSV - Credits

4. Processing Charges/Sub Contract Charges FRL - Debits

5. Stock Account (Raw Material) BSX - Credits

6. consumption from stock of material provided to vendor GBB(VBO) - Debits

so if you are using moving average price for both raw material and finished material then the impact will be on

1.Stock Account (finished goods),

2.Change in Stock Account

3.Stock Account (Raw Material)

4.consumption from stock of material provided to vendor

AMIN

[Former Member]

Hi

In configuration you need to maintain the G/L accounts necessary for SC postings.

IN OBYC mainatin the G/L accounts for the Transaction keys

Stock posting (BSX) - for the finished goods valuation calss maintain the Inventory account.

External service (FRL)

The transaction is used for goods and invoice receipts in connection with subcontract orders.

If the account assigned here is defined as a cost element, you must specify a preliminary account assignment for the account in the table of automatic account assignment specification (Customizing for Controlling) in order to be able to post goods receipts against subcontract orders.

Offsetting entry for stock posting (GBB)

VBO: for consumption from stock of material provided to vendor

assign the valuation class of Semifinshed product being sent to vendor to the G/L account.

This configuration would be sufficient for performing subcontracting process.

Thanks & Regards

Kishore

[Former Member]

Hi,

check these links

http://www.sap-img.com/materials/sub-contracting-cycle.htm

http://www.sap-img.com/materials/subcontracting-key-points.htm

Regards,

Archit

[former_member27]

Hi,

Thank you for your answer there is something wrong with the links please fix

Regards,

Dedi