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Sub-Contarcting External Operation Process

Former Member
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Dear Experts,

I have created one production order for the maerial FIN where in one of my operations(5th) is Externally processed at vendor out of 10 Operations.

When I save the production order Sub contracting Purchase requisation has been created with out any material for the 5th Operation.

I Have the following materials in my BOM

Finised Matearial--FIN

Raw material------RAW

I have done the following business processes

1) I have Released the Production order

2)Goods issue (RAW) to the production order

3)Confirmed all the operations up to 4th operation

The unfinished material which I got upto 4th Operation has to be sent out to external vendor -


How to process ater this ????

Pls. suggest with step by step procedure.

Thanks & regards

KK

Accepted Solutions (1)

Accepted Solutions (1)

sundaresan_velayudam
Active Contributor
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Hi,

1) Maintain a control key pp02 for operation 50.

2) While releasing the production order, PR will be created.

3) Create a dummy material( non valuated) for material to send too vendor

4) Go to change mode of PR me54n and add the dummy material as component.

5) Convert the PR to PO

6) Material send to vendor MB1B with 541 movement

Please check with MM consultant whether They are processing Sub contracting Challan or not

7) If yes , Create asubcontracting challan with reference to material documentin J1IF01

😎 Goods receipt for the PO, 9 as per the quantity received)

9) Reconcille the challan: J1IFQ

10) Complete Challan: J1IF13 (if all quantity received, i.e. at end)

11) Do the MIRO for service

12) Confirm the operation 20 based on the qty received

Regards,

Sundaresan

Former Member
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Dear Sudaresan,

The Dummy non valuated material needs to be assigned to the Ext.Operation in the change mode production order or directly we can assign in the PR ?

One more dought ,this dummy material is also needs to be assigned in the BOM?

Thanks & regards

K

sundaresan_velayudam
Active Contributor
0 Kudos

You can assign Manually In PR or also U can assign a material in BOM, and assign the particular material to the subcontracting operation in routing

Note Create a dummy material as non valuated material maKe a Intial entry by 561 during proceesing, or thru 501

Former Member
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Dear Sudaresan,

I think assigning the Dummy material as one of the items in the BOM and assigning the same Dummy material to the 5 th Operation is TDS job for the user in the real time

As per my understanding

Assingning the Dummy material directly in the PR in the change mode and do the stock tranfer to Vendor stock with MB1B is the best option .

with this we can track the inventory also right?

What do think Am I correct?

One more dought what is the materail type for creating the Non valuated dummy materail?

Thanks & regards

KK

sundaresan_velayudam
Active Contributor
0 Kudos

>

>

>

> I think assigning the Dummy material as one of the items in the BOM and assigning the same Dummy material to the 5 th Operation is TDS job for the user in the real time

Its one time process u Can assign the dummy material in BOm and then assign the dummy material in Routing for operation 50, when ever you create a production order as per the routing the data is copied to the production order

>

> As per my understanding

>

> Assingning the Dummy material directly in the PR in the change mode and do the stock tranfer to Vendor stock with MB1B is the best option .

>

You can also directly assign a dummy material to PR itself

> with this we can track the inventory also right?

By Knowing how Much quantity is send to Vendor, and goods receipt 101 movement, U can track the Inventory

>

> What do think Am I correct?

>

> One more dought what is the materail type for creating the Non valuated dummy materail?

UNBW

>

Regards,

Sundaresan

Former Member
0 Kudos

Dear Sundaresan,

My Q was: I think assigning the Dummy material as one of the items in the BOM and assigning the same Dummy material to the 5 th Operation is TDS job for the user in the real time

Your Ans Was: Its one time process u Can assign the dummy material in BOM and then assign the dummy material in Routing for operation 50, when ever you create a production order as per the routing the data is copied to the production order

Actuallythe 5 th operation is not always the subcontrating operation.

When ever there is a capacity problem they will change the operation as Ext. operation.

So I think assigning he Dummy material in the PR is the best.

am I right?

Thanks & regards

Kk

sundaresan_velayudam
Active Contributor
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Yes best is adding the component in PR.

also

we can do by prodction version , create a two BOm 1) normal and 2) with dummy material

Create two routing

1) for normal operation 2) external subcontracting

create an 2 Production verison a

1 st PV

assign the

BOM 1 and routing 1

2 nd PV

BOM2 and routing 2

In normal system create aproduction order with PV 1

IF you want to select PV2

Read the master data in Production order with pv2.

But every time we need to read the Master data and release it

Regards,

Sundaresan

former_member228481
Contributor
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Hi,

You can go through the Link below:

One more thing, When you dont know which operation will go out SAP has no Std Solution.

It is a manual Job of Changing Control Key Or if Not then to create two Material Codes every time for Operation Suncontracting.

If you want to have Components get copied to Sub-PO then Assign the created materials to that Operation in Production Order.

In EPH4 SAP has tried to provide solution But again its not flexible for Any Operation may Go out.

Regards

Raghu

Answers (3)

Answers (3)

former_member196530
Active Contributor
0 Kudos

Dear

Dear ,

1.Create Routing with 3rd Operation having Control Key -PP02( External Operation ) in CA01

2.Create Production Order or Generate Production Order -CO01, having external sub contracting operation ( Sub-contracting shold be marked ,Purchasing Org , Purcahsing Group , Price etc ) .

3.Assign a non-valuaded material -XXXYYZZ in external operation

4.Release Production Order in CO02 ancd check the PR genreated in External Tab processing in Operation .

5.You can maintain -ve qty for Scarp material in the same PR or else ytpou can captured the same in CO11N in different manner for scrap handeling.

6.Now relase the PR and send the PO to vendor against movement type 541

7.Once the job done at vedor location , recieve the PO as another dummy material ( there will be value addtion due to external operation ) .

REFER :

Hope this is clear

Regards

JH

Edited by: Jiaul Haque on Sep 13, 2010 1:22 PM

Edited by: Jiaul Haque on Sep 13, 2010 1:24 PM

former_member207022
Active Contributor
0 Kudos

Dear

Pls. find the answer from below thread:

Former Member
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There are two different version in doing operation sub contract.

Version 1:-

1) In Control key PP02 enable sub contract.

2) In Order type dependent parameter T code OPL8 enable reservation / PR creation after release/confirmation - 3

3) Create Info record T code ME 20 only for vendor no material combination. ( You are not going to issue material for the vendor through SAP) system will not allow through ME2O since it is operation subcontract.

4) Run MRP it will not create PR directly since the it is enable in OPL8 only after release.

5) Do the In house operation then confirm the in house operation in CO11. Once the previous operation is confirmed PR is generated automatically.

6) Then Convert PR to P.O. In purchase order only operation description will appear. since no component is assigned. And the order type will be F.

7) Then make seperate DC ( Gate pass ) and excise challan 57F4. Consult your MM guy for this.

😎 If any component is assigned to the operation. Do stock transfer to Vendor storage location till such time it comes to factory again.

9) While return from vendor do MIGO against theP.O and it will come settle in prod order.

10) Payment to the vendor is through service record entry concept. Consult MM gut for this.

Version 2:-

1) You have to create seperate material master for that operation. Treating that it will be a different material

2) Create Vendor master with Material and Vendor combination

2) Create BOM with header material and this material as item for the header.

3) Create Rourting for the header material with only one operation with control key PP02.

4) Assign the item material to this operation.

5) Run MRP this will create PR automatically. Then convert PR to PO

6) Send material to the vendor through ME 2O

7) Do GR MIGO the item will come has header material and it will automatically updated in unrestricted stock.

😎 Payment to the vendor will be with different not as service entry concept consult MM guy for this.