Operation Subcontracting in Production Order

[UmaKelly]

I have a scenario where there is a routing with five operations (0010, 0020, 0030, 0040, and 0050), out of which the second operation 0020 is performed externally. We issue material X1 to first operation 0010 and material X2 to second operation 0020 on subcontractor end. Then rest operations (i.e. 0030, 0040, and 0050) are performed in house once we receive semi-finished material SFG2 from subcontractor end.

So in this scenario I have few questions for operation subcontracting.

1. You issue first component X1 to first operation and then your first operation produce a semi-finished material (Let’s assume it is SFG1). Now you provide second component X2 and SFG1 to subcontractor. So my question is, where stock of SFG1 will come from in system? 
2. If I consider SFG1 is a dummy material or non-valuated material then also how its stock will come in system so that I can provide to subcontractor. (Is stock uploading mov 561 recommended)?  
3. If I try to receive stock of SFG1 as a by-product (mov 531), then I have to receive it at the time of first operation confirmation (Where in routing I have used PP01 control key), so how can I receive because by-products are generally received at the time of GR against production order (Last operation confirmation with control key PP03)?

Thanks in advance for any quick insights!

[DerekDing]

Generally speaking, in the production process of production orders, the WIP products have no material numbers and are not subject to inventory management.

For Subcontracting Operation, there are also no material numbers, and inventory management is not carried out either.

If inventory management is to be carried out for WIP products, it may be necessary to establish a separate semi-finished product material and create a production order for it.

For Subcontracting, if inventory management is desired, it is recommended to create an F30 material and execute the procurement Subcontracting process, thank you!

[UmaKelly]

Thank You,

[UmaKelly]

In general it's Ok. And yes we can use special procurement 30 for assembly subcontracting. But for operation subcontracting do I have to send semi finished product to subcontractor without any material number only? Before putting my question I had gone through several SAP blogs and such kind of scenarios are found in this link, please go through it -- https://community.sap.com/t5/enterprise-resource-planning-q-a/pp-subcontracting-with-one-operation-e...