In the subcontracting process, the materials are supplied to a vendor in order to perform a value added service to the material. Subcontracting cockpit sap library managing special. Frequently asked sap mm interview questions with detailed. You require the subcontracting process in sap when a company.
Provide the correct quantity and generate handling units. Step by step guide how to copy flat file from other application server to bi and. Dec 17, 20 third party subcontracting using sc vendor concept. This second operation component go for vendor so the same process flow to create subcontract challan, excise invoice capture, all those things correct. This document covers the configuration to set up subcontracting process for gst and. Sap mm overview presentation for instructors 240 slides february 15, 2017 0 comments in materials management by erpdocs this sample powerpoint slide gives an overview of the procedures listed below which are involved in materials management module of sap. The components that the vendor needs to manufacture the end product are specified in the subcontract order. In this page you will get some sap mm tutorials, details. Rest transaction codes are listed on componentwise. In this process, you make an adjustment of the main item, and you reduce the special stock at vendor which leads to nota fiscal generation.
Sap mm subcontracting process involves sending raw components to a vendor for specific manufacturing processes and receiving the valueadded finished material back into inventory. In a typical subcontracting process, a manufacturing company provides. For the purposes of the special procurement types, there are special stock types. If it is any damage for material in subcontract vendor side so what happen and what is the procedure to follow. Subcontracting sc can be tricky and is not well understood.
Go to purchase order item category l go to purchase order explode bom bill of materials at material data tab create the provided subcontracting items materials master record and enter these at explode bom. Ranking high in the list of larger sized modules of sap, these materials manufacturing components are attracting professionals from all. The material master records and vendor master records are the most important master data in the procurement process. Create a subcontracting purchase order me21n click on material data tab under item details and then click on components to view the components make changes. Hi, im setting up a subcontracting scenario and dont know how to create the vendor. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. In subcontract order processing, the vendor receives materials components with which it produces the end product. Delivery of components to subcontracting vendor me2o. You need to activate the relevant inspection type 0 in the material master in qm view. Process of subcontract in mm subcontract business process. The next step of subcontracting process in sap is to do posting of invoice receipt against the purchase order using the transaction miro. Subcontracting process jobwork for cancellation process. Fill in all necessary details like agreement validity start date, end date, pay termsi.
If the components to be provided are already known in the requisition. Introduction subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. In the quota arrangement, it is mandatory to enter the special procurement type. A material master file stores and maintains all of the information related. When a main bom item is a subcontract item in the item category field of popr line item, the value is l, then the system will automatically know that the sub items need to be issued out. You can thereby create an individual mrp area for every subcontractor see planning for components to be provided in subcontracting. How subcontracting process is mapped get your basics right. The subcontractor sends the invoice for the job work performed. This process is considered better than a complete external procurement as there can be a tighter control on the product quality. Subcontracting sap library material requirements planning.
Subcontracting is the process by which the vendor receives the. It generally follows a format which can be used for comparative. On the delivery address tab page at the item level, enter the vendor and select that the vendor is a subcontracting vendor sc vend. You can integrate sap supply network collaboration snc in your subcontracting process. The purpose of this page is to clarify subcontracting process and configuration for gst and to resolve common errors in j1igsubcon and j1igrecon transactions. In sap, subcontracting is one of the special procurement type in the sap mm. The different steps and events within the subcontracting process.
February 15, 2020 february 29, 2020 by ganeshsapmmwm, posted in sap wm quiz. The process of performing inbound goods movement while. Contracts scheduling agreement longer term contract with subsequent issue of release orders different po s can be released for same contract mainly used for frequent non predictable requirements e. The following scenario can be used where the third party supplier need to get the semifinished material from a subcontractor assembleconfigure again and then deliver it to the customer directly. Sap mm material management welcome to this training course presentation of the sap materials management learn subcontracting process in sap mm. If you use a release strategy, release the purchase order display purchase order, me29n, and save the purchase order again. In subcontracting are used external activity account frl s843520006 and change in stock account bsv s843520006. Sap procure to pay p2p is essential in every organization. The process is similar to a third party scenario, but the difference is that here instead of a vendor. It provides a single entry point for all documents related to your subcontracting process.
Mar 15, 2018 direct subcontracting process sap sd mm subcontracting process sap sd mm. The government of india is planning to introduce gst in 2017. In both cases plant stock is transferred not issued to a vendor location. Sap procurement subcontracting subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. Lets start with discussing the steps that are involved in the subcontracting process in sap. Jan 08, 2014 if a material needs to be returned by the vendor after the subcontracting process is complete could be any waste generated or any byproduct generated during subcontracting process, that material should be maintained as a component with negative quantity in the bill of material bom. Subcontracting process in sap mm free sap mm tutorial by. This section describes how to procure materials using a subcontract order. Ides a release procedure linked to workflow has been set up in the international demonstration and education system ides, which you can run through. Subcontracting return process for gst posted on dec 27, 2017 at 12. Subcontracting is one of the procurement processes available in mm. We will see how theses special procurement types and special stock types are used in the following processes. Taking this mm course will help you with everything you need to start your career in working with sap purchasing, inventory management, invoice verification, and many other important areas of any.
Item categories you can use in purchasing documents. List of sap mm transaction codes sap online tutorials. After maintaining the part, the subcontractor returns it to the service provider. What are the accounting entries when you do the goods receipt for the intra company stock transport order. Consignment subcontracting stock transfer using stock transport order third party processing returnable transport packa. Now customize the name of a clipboard to store your clips. Sap mm interview questions and answers for experienced pdf. Outsourced manufacturing classic subcontracting sap blogs. In subcontract order processing, the vendor receives materials.
You can have multiple inbound deliveries for multiple goods receipts. Aug 02, 2017 below are the accounting entries for subcontracting process. In some cases, logistic processes require special procurement types to be used. Third party subcontracting using sc vendor concept. From sd side, billing document can be created for thirdparty sales order. Thank you for choosing sap erp help blog for your reading. Then i dont know how to create the necessary location and associate this with the vendor.
What is sap mm means, full form or mm stands for materials management, one of the most popular sap modules, sap mm is specifically designed to automate and streamline the processes of procurement, inventory management, valuation and invoice verification. In subcontracting process company provides components to vendor for rework and vendor. You want to buy material from the supplier processed material assembled item, but for some reason quality of certain item price you will give some component to vendor. Is it possible to have pr release strategy at item level for one document type and header level for other document type. When you do gr against subcontract po, system automatically will change the external operation status as eodl. April 20, 2020 by ganeshsapmmwm, posted in sap mm inventory management, sap mm logistics invoice verification, sap mm master data, sap mm procurement, sap warehouse management please check my sap videos in above link and provide your valuable feedback. Sap info record, source list, quota arrangement and pricing. Subcontracting process in sap mm subcontracting process in sap mm is a kind of special procurement where your company orders material from external vendor and provides components to the said vendor for production. However, for goods movements for subcontracting, there were no standard sap customizing setting to accommodate the same purchase accounts for spain. Dec 03, 2011 subcontracting info record for vendor and finished or semi finished materialpossible but not mandatory. The product is ordered by your company through a purchase order. You order the end product using a subcontract order. Mar 03, 2017 sap mm subcontracting process by raju duration. Thirdparty subcontracting using sc vendor concept sap blogs.
Subcontracting the vendor thesubcontractor receives components from the ordering party with the help of which it produces a product. There are certain issues that we have faced to adjust the component stock and with return delivery for subcontracting. Sap mm material management is one the largest functional module in sap. Let us study the basics of subcontracting to understand. Workflow scenarios sap ag releasing a purchase requisition mm purreq 8 april 2001 an individual workflow is started for each release step i. Customers have implemented below gst notes for subcontracting scenario from below guided answer link. Sales sales documents sales document item define item category group. I have raised this issue to sap attached screen shot for reply from sap. My attempt is to share sap afs apparel and footwear and sap fms fashion management solution configuration and functional procedures related to material management module p2p area to readers. This document is a draft, and provided as a reference. Pdf sap community network direct subcontracting process.
Subcontracting process in sap free sap mm training. Create po with item category l,the goods are transferred to subcontractor by 541 movement for this movement note no accounting does take place. Dear all, we have a subcontracting scenario where we send our material to subcontractor1 who processes it to make an intermediate material which he then sends to our subcontractor2 who further processes it and sends it back to us. Bsx stock ac of assembly bsv change in subcontracting stock frl subcontracting charges wrx grir clearing account bsx stock ac of components i am not sure if i have covered a. I dont see anything specifically for subcontraction. The subcontracting with chargeable components solution allows you to record all transactions with subcontractors so that they meet the requirements arising from the act. Subcontracting process in sap free sap mm training erproof. Tell me the subcontracting process with movement types. The outside person or company in this arrangement is known as a subcontractor. What are the accounting entries in the consignment and.
The subcontracting shitauke act regulates activities relating to subcontracting, the process whereby one company pays another to manufacture or assemble a product for it. 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. Subcontracting process in sap sub contracting cycle 1 a material that can be procured externally, and you have maintained bom with components. Sap cin overview free download as powerpoint presentation.
In sap mm purchasing, such agreements are subdivided into contracts and scheduling agreements. Enhancement of conventional subcontracting business process in to modern method through sap enhanced and future. For subcontracting, we receive the byproduct from sub contractor with gr mvt 545 in blocked stock and by using tp 555 we transfer the material. Sap ag materials management mm icons icon meaning caution example note recommendation syntax typographic conventions type style description. The process is similar to a third party scenario, but instead of a vendor, a subcontractor ships the final product to the customer. This document is not to be considered final, and all information contained herein is subject to change. You can use standard outbound delivery functionality to ship it, and a specific transaction me2o to define what is needed at the vendor. Sap mm i about the tutorial sap is an enterprise resource planning software that was basically designed to manage resources, information and activities that are required to complete business processes such as procurement and managing orders, billing of orders and management of human resources. The standard scenario may not need any configuration unless you want to do the subcon movement through delivery. Subcontracting is a process where we send raw materialsemifinished material to vendor to have finished. Jan 26, 2006 this tutorial explains subcontracting process flow in sap sd. Few time there also possibility that few service need to be opted outside organization where we send the material to vendor example pole and wires are sent to vendor for erection at site. Mm integration sd pp qm pm fi am co ps mm material management. The subcontracting cockpit provides a comprehensive overview of all relevant information about your subcontracting process.
Without challan icon has been changed to create invoice. Direct subcontracting process sap sd mm subcontracting. Subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. In this process, components are shared to vendor to get the final product.
It describes how subcontract orders are processed in purchasing, inventory management, and invoice verification. Sap mm overview presentation for instructors 240 slides. Subcontracting can be defined as the processing of the material by the external supplier to get the final products. Jul 12, 2010 subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. You can find further information on subcontracting in the sap document mm inventory management under subcontracting. Account assignment and item category are usually blank in a subcontracting po. Clipping is a handy way to collect important slides you want to go back to later. It is one of the modules in sap that deals with the management of materials and procurement process. The process of performing inbound goods movement while subcontracting. In this process, a manufacturing company provides raw materials components to a subcontracting vendor. Some software products marketed by sap ag and its distributors contain. As such, this document is not to be quoted, cited in any reference. I had searched in customizing and also through some of the oss notes.
This article describes a process called direct subcontracting. From the sap easy access screen, choose logistics materials management inventory management goods movement subsequent adjustment subcontracting. Sap mm module tutorials material management functional module. Tagged best sap, ganesh padala, quiz, sap, sap mm, sap wm leave a comment what is the dynamic storage bin number during goods receipt process in mm wm integration process. You will get more technical details of each of these sap mm tcodes by clicking on the respective tcode name link. Is it possible to have this scenario in a single po and if yes, how. Provide name of vendor, type of contract, purchasing organization, purchasing group and plant along with agreement date.
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