Showing results for 
Search instead for 
Did you mean: 

Re:Subcontracting Senerio in two group companies

Former Member
0 Kudos

Dear Gurus,

My client has a requirement as below :

Plant A & Plant B are plant in different company code. Both the company's are group company.

Plant A is acting as a Subcontractor for Plant B. Plant B is supplying the raw materials & get finish product from Plant A

Now being the subcontractor for Plant A , the raw materials supplied by plant B are non-valuated. Plant A want to track the manufacturing/processing cost. Being a group company client want to have same material code in both the plants.

Also if I am using different material code in plant A (non-valuated material ) , how should I process for Production order creation & also for cost of manufacturing & also sending back finish material to Plant B

Please guide


Accepted Solutions (1)

Accepted Solutions (1)

0 Kudos

Hi Ishwar ,

You can do this way..

Plant A is doing SubCnt. to Plant B,

Create separate Material Type for these materials which are being sent as SC components.

And deactivate the valuation for this material type in Plant B.

You can achieve the stock against same material code in Plant B, without valuation.

Ownership will lie with Plant A, and so the valuation is activated for this material Type in Plant A.

Other Possibility can be u201Cvaluation Areau201D for this take help of MM consultant.



Answers (1)

Answers (1)

Active Contributor
0 Kudos

Dear Ishwar,

Let asume that Material- R1 is send by Plant A ( CCODE-1) and same material was received by Plant-B (CCODE-2). As per Business Process Material R1 is non valauted in Plant B since send by Vendor ( Here Plant A).For this maintain following settings in BOM in Plant-B

1. Activate Material Provision Indicator as 'Part Provided by Vendor'

2. Disable Relavant for costing Indicator for the item R1.

3. Use MTO scenario in Plant B .

Velmurugan S

Former Member
0 Kudos

Dear Velmurugan S,

As per my knowledge , if i tick Relevant for costing indicator that will not cosider for costing of header material but that material will have value

Please correct if I am wrong


Active Contributor
0 Kudos

Dear Ishwar ,

Do the subcontrcting process in Plant - B as MTO scenrio.

1. Create Sale order for FG by considering Plant A as customer.

2. Recieve Material B against that SO.(so that material B will not be valuted in Plant B)

3. Create Production against SO for FG.

4. Do Posting and consumption of SO stock.

5. Then delivery the SO to cutomer here Plant A.