Fg1112, company provide two raw materials rm11 and rm12. In the subcontracting process, the materials are supplied to a vendor in order to perform a value added service to the material. Check for the generation of purchase requisition in the ext. Jan 16, 2017, certified sap is retail mm functional consultant certified professional in public procurement issued by the world bank follow published on jan 16, 2017. Subcontracting process in sap mm after gst subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. Sep 04, 2014 subcontracting process in sap sub contracting cycle 1 a material that can be procured externally, and you have maintained bom with components. You order the end product using a subcontract order. Mm01 create materials finished product and its components cs01 create bom for subcontracting optional me11 create pir of subcontracting type for the material and subcontractor optional do initial stock entry for components in mb1c using mvt type. Jul 29, 2008 sap procurement subcontracting subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. During subcontracting process, our company orders material from an external vendor.
Sap material purchasing mm pur module tutorial, tables and transactions. After you have posted the goods receipt for vendor consignment goods, you can see the stock overview for the material has. The components that the vendor needs to manufacture the end product are specified in the subcontract order. The process is similar to a third party scenario, but the difference is that here instead of a vendor. You require the subcontracting process in sap when a company outsources parts of its manufacturing to subcontractors. The subcontractor converted the raw sims into finished sims well packed and returned finished product back to the company. The subcontracting vendor must be assigned a customer number. Enter the vendor number and in info category select standard or subcontracting or pipeline or consignment according to the requirement. Sap mm module tutorials material management functional. From the point of view of materials planning, subcontracting is initiated by the special procurement key subcontracting. Enter the vendor number and in info category select standard or subcontracting. Create bombill of material1 2create purchase order 3 3transfer components3 4goods receipt. This article describes a process called direct subcontracting.
Dec 17, 20 third party subcontracting using sc vendor concept. The delivery process can be done either in inventory management or in the shipping component of logistics execution. In subcontract order processing, the vendor receives materials. Jan 08, 2014 in subcontract order processing, the vendor receives materials components with which it produces the end product. This process is considered better than a complete external procurement as there can be a tighter control on the product quality. Pdf sap community network direct subcontracting process. Now release the production order and save the order. Nov 28, 2012 sap erp help this blog content is manage by geshan weerasinghe. Make sure that purchasing organization and vendor are mapped to the respective pricing schema groups for accurately calculating subcontracting charges. Subcontracting info record for vendor and finished or semi finished materialpossible but not mandatory. Thirdparty subcontracting using sc vendor concept sap blogs. Jan 26, 2006 this tutorial explains subcontracting process flow in sap sd. Create custom pdf inventory management and physical inventory mmim integration of inventory management in the logistics system goods movement timely consumption and goods movement posting with sap snc integration.
Managing special stocks mm im sap ag managing special stocks mm im 6 april 2001 managing special stocks mm im definition special stocks are stocks that are managed separately as a result of their not belonging to your company or being stored at a particular location. Any waste generated and received during subcontracting process can be maintained as component with negative quantity. Maintain this customer number in the vendor subcontractor master details. Create a customer master with the necessary details partner function, recon account etc for the sales area assigned to plant in step 2. How are the byproducts taken care of in subcontracting. The process is similar to a third party scenario, but instead of a vendor, a subcontractor ships the final product to the customer. Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. Hi friends, i have provided brief details about subcontracting process as per my experience. Sap mm material management welcome to this training course presentation of the sap materials management learn subcontracting process in sap mm. The standard scenario may not need any configuration unless you want to do the subcon movement through delivery. A change to a material subcontracting arrangement refers to a change to any backend registry operator also known as a backend service provider or a registry service provider, which is defined by the registry transition process as an organization contracted by a registry operator to run one or more of the critical functions of a gtld.
Jul 02, 2015 i have provided brief details about subcontracting process as per my experience. Nov 25, 2017 sap s4hana for beginners and 7 key things you should know if you are in sap consulting duration. Subcontracting is one of the procurement processes available in mm. Subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. Purchasing in sap is an integral component of sap material management mm module. As per the model gst law, you can run subcontracting process in one of the following ways. Mm01 create materials finished product and its components cs01 create bom for subcontracting optional me11 create pir of subcontracting type for the material and subcontractor optional do initial stock entry for components in. It describes how subcontract orders are processed in purchasing, inventory management, and invoice verification. They charged the company for their services rendered.
The outside person or company in this arrangement is known as a subcontractor. Subcontracting can be defined as the processing of the material by the external supplier to get the final products. Go to the created production order in change mode and select the second operation and go to operation details as shown below. Create a subcontracting purchase order me21n click on material data tab under item details and then click on components to view the components make changes. Sap procurement subcontracting subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. Create custom pdf inventory management and physical inventory mm im integration of inventory management in the logistics system goods movement timely consumption and goods movement posting with sap snc integration. Sap s4hana for beginners and 7 key things you should know if you are in sap consulting duration. Sub contracting process contents to create subcontracting process1 1. Subcontracting process in sap free sap mm training. Nov 26, 20 go to the created production order in change mode and select the second operation and go to operation details as shown below. In this process, a manufacturing company provides raw materials components to a subcontracting vendor. You can find further information on subcontracting in the sap document mm inventory management under subcontracting. If the components to be provided are already known in the requisition.
Sap co product costing standard costing in sap work center activity types cogs in sap co duration. More sap mm material management interview questions i have total 4 years experience experience as sap end user in pharma ware hosue and mfg division, now iam looking to enhance my carrier, pls let me know which module is preferrable and which sap institute is better to start my sap course at bangalore. Another example of the subcontracting process in sap is when a company provided raw sims and packaging materials to a subcontractor. Delivery of components to subcontracting vendor me2o.
Managing special stocks mmim sap ag managing special stocks mmim 6 april 2001 managing special stocks mmim definition special stocks are stocks that are managed separately as a result of their not belonging to your company or being stored at a particular location. The special procurement key is allocated to the finished product or the assembly in the material master mrp 2 view see also procurement type and special procurement type. A material subcontracting arrangement is defined as any subcontracting arrangement that relates to any critical function as identified in specification 10, section 6 of the registry agreement for the tld a change to a material subcontracting arrangement refers to a change to any backend registry operator also known as a backend service provider or a registry. Sap mm module tutorials material management functional module. Create an info record of subcontracting type for the material with the vendor. Sap tcodes the best online sap transaction code analytics. Sap mm i about the tutorial sap is an enterprise resource planning software that was basically designed to manage resources, information and activities that are required to complete business processes such as procurement and managing orders, billing of orders and management of human resources. Apr 18, 2020 we can use a special type of purchase order the stock transport order. In a typical subcontracting process, a manufacturing company provides. On sap menu screen select create icon by following the above path. Subcontracting process in sap sub contracting cycle 1 a material that can be procured externally, and you have maintained bom with components. In subcontract order processing, the vendor receives materials components with which it produces the end product. Let us study the basics of subcontracting to understand the different steps and events within the subcontracting process the management of the subcontracting physical flow to supply components required there are 3 different.
It comprises function designed specifically for india, a localization implementation guide img, and a country template to help us customize the system according to local requirements. Sep 11, 2017 sap materials management subcontracting process. Enter item category k consignment goods step 2 post goods receipt in migo transaction you can see that movement type is 101, and the special stock indicator is k consignment stock vendor check items as ok, and post. Subcontracting process in sap free sap mm training erproof. The government of india is planning to introduce gst in 2017. Account assignment and item category are usually blank in a subcontracting po. Sap erp help this blog content is manage by geshan weerasinghe. For example, if your company requires a product fg1112, then for the production of the said product i. Structure special stocks and special procurement types are divided into. Issue the first and third components to production using transaction code mb1a. In subcontracting process if the subcontracting period of 180 days is completed and if material is still with vendor, how to complete the process. May 08, 2018 subcontracting process in sap mm is a kind of special procurement where your company orders material from external vendor and provides components to the said vendor for production.
Sap mm material management is one the largest functional module in sap. The following scenario can be used where the third party supplier need to get the semifinished material from a subcontractor assembleconfigure again and then deliver it to the customer directly. Lets start with discussing the steps that are involved in the subcontracting process in sap. After maintaining the part, the subcontractor returns it to the service provider. The service provider provides the part to be maintained to the subcontractor along with other components that may have to be exchanged during the subcontract rework.
Any waste generated as scraps or by products received during subcontracting process can be maintained as component with negative quantity or in % basis in the bom in cs01. Maintain purchase info record me11for subcontract category for material and subcontractor. View its tables, transaction codes and pdf tutorials. Goods issue to vendor in subcontracting make to order scenario. Subcontracting process in sap mm is a kind of special procurement where your company orders material from external vendor and provides components to the said vendor for production. Subcontracting in purchasing a purchase requisition item for subcontracting can be created either manually or automatically from within requirements planning. You can thereby create an individual mrp area for every subcontractor see planning for components to be provided in subcontracting.
In subcontracting process company provides components to vendor for rework and vendor. Sap menu logistics materials management purchasing purchase order reporting. Sap material purchasing mm pur module tutorial, tables. Some software products marketed by sap ag and its distributors contain. In this process, components are shared to vendor to get the final product. As it name says it deals with the entire processes that related to a purchase. Tell me the subcontracting process with movement types. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. In order to plan specific material requirements for each individual.
Sap mm books, sap mm e books material master related important terms part 2 controlling co an organizational unit in accounting that reflects a managementoriented structure of the organization for the purpose of internal control. In this process, a manufacturing company provides raw. Jul 12, 2010 subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. Migo enter the grn with reference to purchase order and refer the subcontracting challan in the excise tab at hedaer level. Subcontracting process in sap mm free sap mm tutorial by. Taking this mm course will help you with everything you need to start your career in working with sap purchasing, inventory management, invoice verification, and many other important areas of any. Sap country india version cin is designed for use by business with operations in india. This section describes how to procure materials using a subcontract order. Fg1112, company provide two raw materials rm11 and rm12 respectively to external vendor.
882 171 169 1034 565 1229 47 1608 767 574 138 1009 791 478 1318 1493 703 1504 304 1155 636 684 554 1355 808 854 211 139 1105 699 340 670 193 73 776 59 1246 379 1409 507