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third party subcontracting

Former Member
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Hi Expert,

I have some subcontractor related problem.

In subcontracting process component to be supplied by " Third party" not by our company,we create the purchase order and given the delivery address to the subcontractor address. in this process which movement type is use for transport the material to the vendor and which movement type is use by system to consume the supplied material. what is the procedure please explain in detail.how many PO have to be created in this process.

Please explain step by step with T-code ,item category and with movement type

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Former Member
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Third part subcontracting can be configured by using the MRP are functionality for Vendor define the subcontracting vednor as MRP area so automatically the system will plan for the componenets to be delivered to the Subcontracting vendor from the third party.

Former Member
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please explain the whole third party scenario with T-code,item category and movement type. In this scenario, is it create to two Purchase order ??

pankaj_singh9
Active Contributor
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Third Party Process Flow: -

1) MM01 - General Item category Group should be BANS in basic view of material master.

2) VA01 - Creation of sales order with VA01 transaction in SD module

3) When sales order is created system automatically creates a PR for the material with item category as "S"--> Third Party Item

4) ME21N - Directly PO with item category as "S" and delivery address as customer address

5) MIGO - Statistical GR by MM ( When it is made goods are received and delivered)

6) MIRO - Invoice by MM for vendor

7) VF01 - Billing by SD on Customers

Former Member
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please explain the whole third party subcontracting scenario with T-code,item category and movement type. In this scenario, is it create to two Purchase order ??

Former Member
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Hi,

The third party sub con scenario involves two PO's as below,

1. The third party PO , u need to create third party PO for ur component material to be supplied by third party to ur SC vendor.

The PO will be std NB , wr in delivery adrs tab u will check the check box for SC vendor and maintain the SC vendor

and when u do the GR for this PO , the material will be with SC vendor stk, u can chk in MMBE. The movement type will be 101 only for doing GR

2. The second PO is the finished material PO which u will place for ur SC vendor - which will std doc type NB , with item category L.

The finished material will have BOM maintained.

The main point in third party sub con scenario is the transfer posting ie goods issue will not be done ie 541 movement type for component material will not be done. Since the third party PO has already supplied material to SC vendor.

Here u do direclty GR for SC vendor PO, at that time 101 will recieve ur finished material and 543 will consume ur component material which u have supplied to ur SC vendor via third party vendor.

And u can chk after this in MMBE the sub con stk will get reduced for component material.

Pls go through this step , u will get it.

Pls reply for any clarification