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how to handle subcontracts in SAPB1?

Former Member
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Hi all, i want to know how company can handle subcontracts for production modules?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Mukesh,

Actually you need to do the following steps,

Parent Product: A1001

Components: B1001, B1002 and B1002 is the item you want to send on sub-contract. First of all change the procurement method of this item in the item master data from "Buy" to "Make". Now create a Bill of Material for B1002 and add some labour or sub-contractual cost in its BOM.

Now whenever you run an MRP for parent product A1001, you will be prompt for a production order of B1002 as well which you can send to your sub-contractor.

If you want to differentiate this production order from normal, make another doc series with series name whatever you want.

Regards,

/Siddiq

Answers (2)

Answers (2)

former_member186095
Active Contributor
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Hi,

There is an SAP addon for complete manufacturing, here is the link of the partner that developed the addon :

www.beas.de

Rgds,

Former Member
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Hi,

Straigtly the subcontractor activies can't be addressed in B1. You need to develop the add-on. If you want to address in B1 itself, you can handle with some work around.

1. For subcontracting activities, you need documents

Purchase order for the job

2. You need Delivery challan to send the material.

3. You need GRN for receive the material

4. A/P billing

5. Stock lying in the S.C location need to monitored

6. Issues Vs. Receipts has to be monitored.

For 1. SBO - P.O can be used.

2. Create one warehouse for Sub contracting location. There is no delivery challan concept in B1 for vendors.

you can use inventory transfer screen with UDF for vendor details. The stock details can also be monitored.

3. When we receive the material again use inventory transfer between two locations.

4. From P.O, you can enter the A/P invoice for those items.

This method can be used only very simple production ( One to One materials) and P.O for single job not for scheduled job.

Regards,

Venkatesan G.

Former Member
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Hi Venkatesan,

One of my client is also undergoing sub-contracts, the main problem is for producing one product(finished goods), they require some 14 components, and in that 14, many sub-assemblies are required. for eg. if the 14 products are defined as 1,2,3 and so on, for producing 1, it requires some 4 products like 1.1,1.2,1.3 and 1.4. So how many Bill of Materials will be created and how these are tracked? will it be difficult or is it better to go for an add-on? and what abt the quality specification attached to the product? Please do the needful.

Thanks and Regards,

G.Aarthi

Former Member
0 Kudos

Hi Govinda,

In lot of companies specially manufacturing companies are using multi-level BOM and in such organizations some times level of BOM goes more than 10 but they have to use this for proper material management. I dont know abt the Add-on but if you want to handle it without add-on then this is the most suitable work around.

Regards,

/Siddiq

Former Member
0 Kudos

Hi,

It is better, you develop an add-on.

Regards,

Venkatesan G.