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Subcontracting Procedure material provided by vendor

pavan_kulkarni3
Active Participant
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Hello Experts,

Customer is sending one product out from factory for services. The Service Vendor will add the required components to the semi-finished product and convert it into the finished product and send it back to the factory. Here, I was thinking of Subcontracting process. But, the required components are not sending by Factory and these are added by Vendor and send the invoice of those products including the service Charges.

I believe this can not be achieved in the Subcontracting Scenario. Is there any way to handle this using standard SAP?.

An example is like below :

A material ( Semi-Finished) will go out from the factory to X Vendor.

X Vendor will add A1, A2 and A3 Components and send the final product to the Factory.

X Vendor create the Invoice of A1, A2, A3 Component values and Service Charges, Etc.,

The Factory settles the invoice.

Please let me know any such scenario possible with Standard SAP Configaration.

Thanks and Regards

Pavan

Accepted Solutions (1)

Accepted Solutions (1)

kenmelching
Active Contributor
0 Kudos

From your standpoint you do not need to show consumption of the materials provided by the vendor since they are not processed through your inventory. You will pay the vendor for their services and the material they procured but the details of their procurement are for your information only. Those are details on their invoice.

The value on the subcontract PO includes their services and the materials they procure. That is what they invoice. Usually the vendor is responsible for the costs of they materials they provide, it sounds like in your case the vendor is paid their services plus the material cost, you would need to adjust the PO price in that case.

Answers (3)

Answers (3)

pavan_kulkarni3
Active Participant
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Hi Team,

Closing ths=is thread.

The option we used is recursive BOM. we have maintain the service condition for the value for services.

shailesh_mishra5
Product and Topic Expert
Product and Topic Expert
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Hello,

The material provision indicator is just to show that these components will be added in your subcon process by vendor. You cannot conduct 541 from your plant as you dont own it. Dependent requirement of the components are not generated.

best regards

Shailesh Mishra

pavan_kulkarni3
Active Participant
0 Kudos

Thank you.

But how can we show the consumption of those components? Also the valuation of the components?

shailesh_mishra5
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hello,

You can add the components which which will be provided by vendor in subcontracting BOM.

Create the subcontracting BOM and for bom components mark them as L which are provided by vendors in your subcon process.

Best regards

Shailesh Mishra

pavan_kulkarni3
Active Participant
0 Kudos

Hello Shailesh ,

Thanks for your input. I have tried the same. However, When I'm doing the Goods issue, the system is asking Storage Location and giving an error message of Deficit of Stock ( the stock is Zero Qty for this material ).

Am I doing something wrong ???

Thanks and Regards

Pavan