Intra company subcontracting process

[sopya1]

Hello Experts,

One of our clients requires the implementation of a subcontracting process between two plants within the same company code. We attempted to configure this process but encountered limitations due to the current setup. The plant is maintained as a vendor, and if we remove it, the system will prevent posting inbound invoices for the STO, as we already have an STO process between the plants. Due to these configuration limitations, we are unable to proceed with the subcontracting process for intra-company plants . Could you please advise on how to properly configure this in SAP S/4HANA Public Cloud? 

[Chuma]

Hello @sopya1 

In S/4HANA Public Cloud, intra-company subcontracting between two plants is not a standard MM-subcontracting pattern.

For transfers occurring within the same company code, it is recommended to utilise the appropriate Stock Transfer scope items: BME – Stock Transfer with Delivery or BMH – Stock Transfer without Delivery. Please note that these options do not involve a vendor or the issuance of an invoice.SAP Learning-Exploring the Stock Transfer With Delivery (BME) Scenario

Subcontracting (BMY) is only for external suppliers and is managed with the Subcontracting Cockpit (F2948)—don’t model one plant as the subcontractor.

SAP Learning-Carrying out the Subcontracting Solution Process

For transactions involving charges between legal entities, structure them as intercompany arrangements (e.g., 5HP Advanced Intercompany Stock Transfer) instead of intra-company ones.SAP Help Portal-Setting Up Advanced Intercompany Stock Transfer

With kind regards

Chuma

[Johannes_Schulte]

Hi Sopya,

in general, a subcontracting process within the same company code does not make sense. Typically you can move materials between plants in the same company code without any invoice. I would set it up like this:

- Plant A delivers material A via STO to plant B
- Plant B creates material B by using material A
- Plant B delivers material B via STO to plant A

Regards
Johannes