Outside Processing

[Former Member]

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 Member · Accepted solution]

Hi

Kindly refer the following link:

http://help.sap.com/saphelp_47x200/helpdata/en/b1/c04ae2439a11d189410000e829fbbd/frameset.htm

Thanks

Saravana

[Former Member]

I already have an external key assigned in the routing.

What is this about Activating Special Procurement in the material?

[Former Member]

That is in MRP 2

[Former Member]

the whole material isn't subcontracted

only 1 operation is externally processed.

[Former Member]

Hi Rafiq,

Please let me know if i have understood your need correctly.

You want to know whether the finished good has been sent for the external operation - Yes or No... as there is no actual transfer posting done.

Regards,

Vivek

[Former Member]

My requirement is that I have a production order with one operation that is externally processed.

I have this set in the routing with a different control key (PP02).

Shouldn't the main Finished Item be transffered to the vendor along with the Purchase Order?

Thank you

[Former Member]

Hi Rafiq,

There are 2 types of sub-contracting, one where you just sub-contract an operation, so in this case, there is no question of issuing the header material to the sub-contractor in the system.

The other is where your material is transformed into another material, so in this case, you issue the material eg: A & receive it back as B.

So be clear about the process before mapping it into SAP.

If any additional info is required, revert back.

Regards,

Vivek

[Former Member]

Make sure you activate special procurement for material in MRP view

[Former Member]

In routing select ontrol key with external processing

[Former Member]

Dear All,

I managed to complete the external/subcontracting

Regarding the raw materials in sub contracting in md04 I can see that the material is at the vendor/subcontractor location.

However, how can I keep track that the Finished Good also went to the vendor/subcontractor and its at his location?

That doesn't happen now.

Please inform if my requirement is correct.

Thank you

[Former Member]

Dear Rafik,

You can do external processing or subcontracting purely from MM perspective or you can trigger the procurement from PP . If you want to trigger the procurement from PP there are two ways . One way by mainatining the procurement key F for external procurement or F 30 for sub-contracting and during MRP run system directly generates PR for the requirement.

In the second ,you can use a control key PP02 for a dummy operation and assigning the material to that operation with all the purchase related information . In this case the release of the production order generates a PR for that material.

Once the PR generated , MM people will convert it to PO , issue raw material or semi finished material against sub-contracting PO using 541.

[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

[Former Member]

Any further details?