MRP for Jobworker in SAP B1

[TanviV]

Hello,
I want to run an MRP for Jobwork where I am giving raw material to the Jobworker and receive Finished Goods. I am trying to run a scenario where  I am getting recommendations only for the purchase order of the Finished Goods from Jobworker but I also need to procure the Raw material required to make this Finished Good and make semi finished goods made inhouse that we send to the jobworker
Please help.
Thanks in advance! 

[Yadharthavel]

Hi @TanviV ,

Steps to Manage MRP for Job Work in SAP B1 HANA

1. Define the Bill of Materials (BOM) and Routing:
• BOM: Ensure you have a Bill of Materials defined for the Finished Goods (FG) that you receive from the Job Worker. This BOM should include both the raw materials and any semi-finished goods (if applicable) that you send to the Job Worker.
• Routing: Define any routing if your production process involves multiple steps or operations.
2. Set Up the Job Work (Subcontracting) in SAP B1:
• Create a Subcontracting Item: In the Item Master Data, create an item for the Finished Goods with the appropriate attributes and ensure it’s set up to be processed as a subcontracting item.
• Define the Job Work Process: Go to Production > Production Order and create a production order for the Finished Goods. In the order, specify the Job Worker as the supplier for the subcontracting process.
3. Configure MRP Settings:
• Material Requirements Planning (MRP): Go to MRP > Run MRP to start the planning process. Ensure that your settings are configured to handle subcontracting scenarios. This might involve configuring MRP parameters to consider the raw materials needed for subcontracting and the requirements for in-house production.
4. Procure Raw Materials:
• Purchase Orders: Once MRP has processed, it should recommend purchase orders for the raw materials needed. Ensure you’ve set the procurement type for these raw materials to “Purchase” in the Item Master Data.
5. Process the Production Orders:
• Semi-Finished Goods: If your process involves making semi-finished goods in-house, create production orders for these items as well. This should be reflected in your BOM and routing.
• Send to Job Worker: Once the semi-finished goods are produced, you need to send them to the Job Worker. Create a Delivery for the semi-finished goods and link it to the Job Work (subcontracting) process.
6. Track Job Work (Subcontracting) Orders:
• Goods Receipt from Job Worker: Once the Job Worker has completed the Finished Goods, you will receive them back. Perform a Goods Receipt to update your inventory with the Finished Goods from the Job Worker.
7. Review MRP Recommendations:
• MRP Reports: Check the MRP recommendations to ensure that all necessary raw materials and semi-finished goods are planned and ordered appropriately.