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Former Member

Work Order & ERP:

Purchase Order


Reflects the price to be paid to a vendor for a quantity of products. A Subcontract Order is a specialized PO that can also capture the requirement to issue certain components to the vendor (in our context = contract manufacturer).

Resides in ERP Operations

Controlling Production Order

(CO Production Order)

Tracks the actual costs incurred during manufacturing.

An internal order that represents a production order from the cost accounting point of view.

Resides in ERP Financials

Product Cost Controlling [CO-PC]

Manufacturing Work Order

(Work Order)

Captures the requirements what to manufacture and keeps track of actual manufacturing progress.

Resides in SCM supply network collaboration

The high level architecture and process flow of the solution is shown in figure 1.

A Work Order in SNC is created either for one ERP PO Item or for an ERP PO Item – Schedule Line.

The Cardinalty between PO Item : CO Production Order : Work Order is 1 : 1 : N

Step  Explanation

1.      A Subcontract Order triggers generation of a CO Production Order per PO Item; AAM assigns PO Item to CO Production Order. CO Production Order is          written into PO Item account assignment reference.

2.      PO release triggers a Work Order creation per PO Item or per PO Item – Schedule Line in SNC. The CO Production order will get reference to the Work          Order later (Step 5).

3.      Goods Movement of components to vendor stock is done manually.

5.      AAM assigns  Work Order to CO Production Order.

6.      SNC system sends production progress information including the number, batch and type of components used. ERP system posts a corresponding          goods issue for these components referencing the PO item.

7.      In the Goods Issue processing: CO posting through reference in PO item account assignment.  

9.      Goods are received from the subcontractor into the inventory. ERP system posts a goods receipt with reference to the relevant PO item.

10.     In the Goods Receipt processing: CO posting through PO item account assignment reference.

11.      SNC system sends production progress notification: On the CO Production Order, characteristics Work order status gets updated.

1.4 Out of Scope

- ASN shall not be considered in the scenario

- The scenario is started by creating a PO.

- The scenario does not cover the case when the PO on ERP side or the Work Order on SNC side is changed.