Outside Processing

[#1]

Dear All,

Can you guide me with steps through outside processing and subcontracting operation?

It will be appreciate if you guide with configurations and walkthrough steps scenario.

Thank you

[former_member196530]

Hello Rafik ,

Hope this will give you an idea about Subcontracting Operation :

Subcontracting Steps:

1. Define all the materials in your plant (subcontracting and packaging etc).

2. In the material master MRP 4 view there is one field in which you can mention that this material is not relevant to MRP planning, use this field for subcontracting material so that it will not be planned in MRP runs ( generally use this field for re-order point planning).

3. In the BOM for the subcontracting material put the special procurement key as Subcontracting and do not keep relevance for costing.

4. If you're using packaging material of your company and want to capture the cost of these materials in the subcontracting production order then put relevance for cost.

5. Define alternate BOMs for each customer.

6. Generally the routing will be the same but materials will change, define different prodcution versions for each alternate BOM and assign to the routing.

7. Define the activite types for packing and mixing in the work center and assign them to the cost center, use these for your routing.

8. Whenever you recive a sub-contracting order, use the relevant production version depending on the customer.

9.Please use control key PP02 (customizing in OP00)in routing and maintain

info record for subcontracting vendor

In my place all the palnts belong to the same client in sap and they want to use the same material code in both plants, so I think my subcontracting scenario might be different from yours but it give you some ideas to go about it.

Regards

Jia