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Former Member
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we need to issue the material to the sub contractor with ref to po.(541)

is it possible.

this is our requirement.



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Answers (4)

Answers (4)

Former Member
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Step By Step Process of Sub contracting

1.Create po with Item category as "L".&Vendor

2)If Bom exists in Item details explode Bom or if no Bom go to components and add components .

3)U can also add Scrap and see that base unit should be in Negative. MMR to be maintained with scrap In Kgs.

4)Save Po

5)Transfer posting to be done MB1B with movt Type 541.

6)Go to mmbe & check the stock it should show whatever qty indicated should appear and says that "Material provided to vendor"

7)Do Migo w.r.t Po&post it .

8)Parent Item & Scrap is also Inwarded .

9)Moreover It will hit 6 G/L Account which u can see in MB03 .

If Helpful reward Pl.

Sathyanarayana .d

Former Member
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Hi Raja,

I think your query is not clear. Yes, you have to issue the material to your subcontractor only thro' 541 movement. There is also one more movement called 101-O, through which you directly issue the material from your vendor place to your subcontractor.

Best regards,


Former Member
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Yes it is possible.

After u have created the Subcontracting Po ,then u have to issue the material to the vendor so tht the vendor can send u the finished product after process.

So u have to do goods issue to the vendor using the tcode MB1B and mvt type is 541.

im also attaching u the process of subcontract, which may be help to u.

Process of Subcontract in MM

Sub-contract business process:

You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .

Vendor shall process the item / use the item provided & supply the final item.

SAP process:

1.Create the finished goods material code.

2.Maintain the BOM for the material.

3.Create PO with item category as "L" .

4.Issue material to vendor with movement type 541

5.Receive the material against the PO with movement type 101.

6.MIRO to account for vendor's invoice for the service charge& material used by him.

Can anybody tell me how a process has to be given to subcontracting?

Suppose, I have 3 operations 1)weaving 2)dyeing 3)cutting & packing

if no 2 process (i.e Dyeing) has to be given to subcontracting, what process should i follow ?

The following process to be followed for subcontracting.

1. Item code(material master) to be created at the stage of before dyeing.

2. Item code(material master) to be created after Dyeing as subcontracted item.(F30)

3. Bill of material to becreated for the material(2) calling for material(1)

4. Inforecord and source list to be created for material(2) with the corresponding vendor

5. PO to be released for material (2)

6.Along with PO the material(1) to be issued to vendor

7.On receipt of material when GR is made the stock with vendor will get updated.

How to Create a Subcontract Order?

To create a subcontract order, proceed as follows:

Enter the material you want to order and the item category for subcontracting (L) in the order item.

Press ENTER to display the screen for component processing.

Enter the components that the vendor requires to manufacture the product.

Please note:

– You do not need to enter the date required for the components. This date is proposed by the system when you press ENTER.

It is calculated as follows:

Delivery date of the item - Planned delivery time

– If you do not want the quantity of the components to be changed if the order quantity of the end product is altered, set the indicator Fixed quantity (column F).

– You can determine whether the components are available on the date required by selecting Edit -> Availability check.

If you entered a bill of material as the material in the subcontract order, the components are created automatically.

If you want to determine the components in the bill of material at a later date (for example, if the bill of material is subsequently changed), choose Item -> Component -> New BOM explosion. The existing components are deleted and redetermined in the bill of material.

Save the purchase order.

When you print the purchase order, the components are printed per order item

Subcontracting - Key Points

Special Procurement Process.

Item category: L

Order type: NB

In info record vendor should be maintained as subcontractor.

Vendor (Subcontractor) receives the components used to manufacture a finished product directly from your company or through third party.

Your company should place a purchase order for the finished product. In this manually you can enter the required individual components or it can be determined via the explosion of BOM (if exists).

Stock check at vendor level: ME2O

Company stock check: MMBE

GR for individual components through movement type: 501 or 561 (if with out PO or without reference).

GI to subcontracting vendor: through movement type 541.

GR from sub contracting vendor: through movement type: 101

Movement type 543 is displayed to cancel the material cost account.

If the subcontracting order has to be generated through materials planning,the special procurement key has to be set in MRP 2 screen.

- To create the Subcon Info Record : Tcode ME11 - Info Category - Click Subcontracting

- To create Material BOM : Tcode CS01

- With the Info and Material Setup, you can then create the Purchase Order in Tcode ME21N

Reward if useful


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Former Member
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Hi raja

Go to MB1B in this u can see <b>TO PURCHASE ORDER</b> in upper corner

here u can issue material to subcontractor with ref. PO

But u need to create subcontract Po for this

(<b>Item category: L

Order type: NB</b> )


Former Member
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we are using only migo transcation



Former Member
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In MIGO select goods issue--purchase order ( here give sub. contract Po number) and movement type as 541


Former Member
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In GI against PO 541 is not appearing

Former Member
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U need to manualy select 541 movement

( press F4 and select from dropdown or manualy enter 541 movement )


Former Member
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in the tcode MIGo and ther select the transcation as goods issue. and then select the movt type as 541 the front screen in the right hand corner.



Active Contributor
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Using ME2O you can also send the goods out to your supplier.

You have to select the components you want to send to the provision stock and push 'Post goods issue' button.