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Subcontracting the same material

Former Member
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2,042

Hi,

we use the subcontracting process, one of the main master data needed is the bill of materials, so that the components are defined and shipped to the vendor and the finished product is returned from the vendor. This process works fine, and the costs are charged to the finished products.

question: can we apply the subcontracting process for the same material as component and finished product? I ask because we have now a lot of materials in inventory that have to go to the vendor just for a small process, but the vendor will not return a new material; the vendor will return the same material with a very little adjustment, but we want this little adjustment to be charged to the material (without creating new materials, a lot) and not as a service cost; si, is it possible or how colud we handle it?

Thanks a lot

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Answers (2)

Answers (2)

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HI luis,

how to handle partial GRN in this particular scenario since system gives error message of deficit of qty.

pan

former_member187965
Active Contributor
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Hi Luis,

Yes, it is possible with recursive BOM. In case of recursive bom, the finished material and the child material are same. Suppose you are creating bom for 'X' material then the component material will be same 'X' material.

Former Member
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Hi kurdukar,

how do I define the recursive bom, should I create it as a bom (CS01), should I assign it as component in the purchase order o r how would be the best way?

Thanks a lot!!

Former Member
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Hi Duran,

Yes, recursive bom is created as a normal bom, but you have to check mark the recursive box.

Regards

Irfan A B

former_member187965
Active Contributor
0 Kudos

Hi Luis,

Create bom through CS01 and in the components assign same material for which you are creating the bom. System will give you a 'Error message' 'Message 29110' as 'BOM is recursive'. Activate 'Recurs. allowed' check mark. Save the bom.

Now, create sub-contracting PO and under 'Material data' tab, 'Components', you will find the same material as entered in PO. So, after GR, the material code remains same. Same material gets consumed from sub-contractor stock and the charges entered in PO are accounted as sub-contracting charges.