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PP with subcontracting

Former Member
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is it possible to do subcontracting with PP module.

becuase the material which is consumed in 1st operation has to be sent for some work to external vendor in second operation

so system creates a subcontracting PR

but the question is we have already consumed the raw material as we did good issue to production order so now the raw material quantity is zero and for subcontracting need to send some material to subcontractor.

so question is from where does this quantity going to come from??

or if i have mapped the secenrio in a incorrect way .please explain what is the right proceedure of doing subcontracting through production order.

i think in most of the manufacturing companies this case will be there

Accepted Solutions (1)

Accepted Solutions (1)

Active Contributor
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During the Routing Operation u need to do the Sub Contracting Process as u mentioned its a operation sub-contracting i guess

For that u need to assign External control key EX: PP02 when u enter this the screen will be followed to subcontracting


1. Create a Purchase info Record

2. Create a material PO where in suppose For EX: u have SFG >>>> ROH here u want to send material roh to subcontractor to make SFG then u have to make PO for SFG where and send ROH material to vendor with 541 mvt type

3. In MMBE for ROH u can see stock Provided for vendor after that u do GR for SFG

4. Ull receive the SFG with 101

With Regards


Edited by: pushpalas on Dec 22, 2011 8:33 AM

Answers (3)

Answers (3)

Former Member
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In addition, if you don't want to use dummy material as other suggest, please maintain as 2 level of production where your Bill of Material of production order only consist of SFG after subcontracting process. Then for those SFG will have special procurement key Subcontracting and then create PO for Material SFG.


Arman Lie

Active Contributor
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In PP subcontracting, Purchase requisition is created for the service not for the material. You convert it to a PO (Non-MRP, because it's service PO)

You do goods receipt for service and then you have to do confirmation. As compared to MM in which costing is done at material level, in PP module the costing is done at material group level.

Former Member
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