Simple subcontracting process with special procurement key 30 for header materials

[RaghavanKathamuthu]

Intro

Consider that you are agent who will make wedding ring or Mangal suthra with help of external gold smiths and then sell it to customers.

Some times customers will give you gold coin and you will give the gold coin to goldsmith and make ring or suthra and then sell it to customer. In this scenario you have to use subcontracting process in SAP.

Consider the Ring or Suthra as header material with inhouse production key and then Gold coin as BOM component for the header materials as raw material.

Main part

Config prerequisites

SIMG - Production - Material Requirements Planning - Master Data - Define Special Procurement Type

Master data Perquisites 

Material master - In header material you need to maintain the special procurement type as 30. Consider this as Manga suthra or Wedding Ring.

BOM - The component is Gold Coin that you are going to get from customer and give it to the gold smith. Add Gold Coin (Raw material) as BOM to Ring or suthra.

Create Production Version only with BOM which is mandatory in S4 HANA for subcontracting which in turns used to choose the components in PR.

Create Info Record in ME11 in subcontracting with automatic sourcing selected so that it will be selected automatically while creating the Purchase requisition in MRP run. Here the supplier is gold smith who is going to provide the service for you.

After running MRP you will get the purchase requisition for header material (Ring or suthra) with the production version.

Now convert the purchase requisition to Purchase order. Select the PR from Overview and click copy. Then You can see the component button in material tab

Click on components button to see the gold coin.

Later do Goods issue for the Gold coin in MIGO against the purchase order and send the component to Gold smith. He will finish the job and send it back to you.

Then you do the Goods Receipt against the Purchase order for the finished material Ring or Suthra in MIGO. 
Then at last create a sales order and sell it to customer.

Conclusion
I hope this may help you on understanding the process of subcontracting in Production. Also have a look to Link 

Please comment if I am missing something