Purchasing Assemblies from External Vendor

[sagnikch]

Dear All, 

Can someone help with this scenario in Sourcing and Procurement, a company purchases an assembly say Computers, the assembly of the computers can have sub components like Monitor, Key board, Mouse etc. The requirement is when I maintain the subcomponents in the BOM, Order is placed to the external vendor to supply computers, at the time of GRN of computers, the stock of the main item as well as the subcomponents to be updated in the inventory and also the main items and subcomponents can be separately consumed. 

Regards,

Sagnik. 

[Patryk_Waledziak]

In SAP S/4HANA Cloud Public Edition, to manage a procurement process where purchasing an assembled product (e.g., a computer) requires inventory updates for both the main item and its subcomponents (e.g., monitor, keyboard, mouse), you can utilize the subcontracting procurement process. This approach allows you to handle assemblies with their components effectively.

Subcontracting Procurement Process:

1. Material Master Data Setup:

   • Define the finished product (computer) and its components (monitor, keyboard, mouse) in the material master.

2. Bill of Materials (BOM):

   • Create a BOM for the finished product, listing all necessary components. This structure enables the system to recognize the relationship between the main item and its subcomponents.

3. Subcontracting Purchase Order:

   • When placing a purchase order with the vendor, specify it as a subcontracting order. This indicates that the vendor will supply the finished product, and the system will manage the components accordingly.

4. Goods Receipt (GR):

   • Upon receiving the finished product, perform a goods receipt. The system will automatically post the stock of both the main item and its components based on the BOM.

5. Inventory Management:

   • After the goods receipt, both the finished product and its components are available in inventory. This setup allows for separate consumption of the main item and its subcomponents as needed.