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    Subcontracting Operations

    Uploaded by

    Abhimanyu Kali

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Subcontracting Operations

    Uploaded by

    Abhimanyu Kali
    12 views17 pages

    Copyright

    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    12 views17 pages

    Subcontracting Operations

    Uploaded by

    Abhimanyu Kali

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 17

    SAP PP Subcontracting Operation

    ➢ Scenario:
    Inhouse production material (Header material) is produced with three operations out of which Second
    Operation is performed outside (provided to vendor) due to various reasons like Machine breakdown, capacity
    problems.

    ➢ Prerequisite:
    1. In Control key PP02 enable external processing and in the routing in the operation detail enable external
    processing under radio button subcontract.
    2. Run MRP it will not create PR directly since the it is enabled in OPL8 only after release.
    Do the In-house operation then confirm the in -house operation in CO11n. Once the previous operation is
    confirmed PR is generated automatically.
    3. Then Convert PR to P.O. In purchase order only operation description will appear. since no component is
    assigned. And the order type will be F.
    4. If any component is assigned to the operation. Do stock transfer to Vendor storage location till such time it comes
    to factory again.
    5. While return from vendor do MIGO against the P.O and it will come settle in prod order.

    Nilesh S. Pagar

    SAP PP Consultant P a g e 1 | 17
    SAP PP Subcontracting Operation

    ➢ Master data used:


    • Header material: 200000216
    • Component materials: 100000119, 100000120, 100000121
    ➢ Process Flow:
    ✓ Create BOM for header material as shown below with CS01 with three components as input materials.

    Nilesh S. Pagar

    SAP PP Consultant P a g e 2 | 17
    SAP PP Subcontracting Operation

    ✓ Create routing for material with three operations and for second operation assign control key PP02 as shown below
    with Transaction code CA01

    ✓ Assign the materials to the respective operations as shown below

    Nilesh S. Pagar

    SAP PP Consultant P a g e 3 | 17
    SAP PP Subcontracting Operation

    ✓ Create Purchase Info record using ME11 for material which will be assigned to 2nd operation (for External
    Operation)

    Nilesh S. Pagar

    SAP PP Consultant P a g e 4 | 17
    SAP PP Subcontracting Operation

    • Control Key with External Process Details

    Nilesh S. Pagar

    SAP PP Consultant P a g e 5 | 17
    SAP PP Subcontracting Operation

    ✓ Create the production order for the header material with CO01 as shown below

    Nilesh S. Pagar

    SAP PP Consultant P a g e 6 | 17
    SAP PP Subcontracting Operation

    ✓ Go to the created Production order in change mode and select the second operation and go to operation details as
    shown below.
    Check for the generation of Purchase Requisition in the Ext. Processing Tab.

    Nilesh S. Pagar

    SAP PP Consultant P a g e 7 | 17
    SAP PP Subcontracting Operation

    ✓ Now release the Production Order and save the order

    Nilesh S. Pagar

    SAP PP Consultant P a g e 8 | 17
    SAP PP Subcontracting Operation

    ✓ For the second operation assign external processing parameters as shown below.
    Enter details of Purch. Organization, Purchasing group, Material Group, and others as per the requirement.

    Nilesh S. Pagar

    SAP PP Consultant P a g e 9 | 17
    SAP PP Subcontracting Operation

    ✓ Now confirm the first Operation with transaction CO11N after completion of the same as shown below and save

    Nilesh S. Pagar

    SAP PP Consultant P a g e 10 | 17
    SAP PP Subcontracting Operation

    ✓ Create Purchase Order with the Purchase requisition generated for the second operation with transaction ME21N

    Check whether the second component is attached to this Purchase order or not by clicking on the Components button

    Nilesh S. Pagar

    SAP PP Consultant P a g e 11 | 17
    SAP PP Subcontracting Operation

    ✓ Now issue this component to the purchase order with movement type 541 through transaction MIGO as shown
    below.

    Nilesh S. Pagar

    SAP PP Consultant P a g e 12 | 17
    SAP PP Subcontracting Operation

    Stock overview of component Before & after Stock Transfer using Movement type 541

    Nilesh S. Pagar

    SAP PP Consultant P a g e 13 | 17
    SAP PP Subcontracting Operation

    Second component sent to vendor for executing the second operation. Once the operation completed by the vendor semi-finished product
    is sent back to plant for execution of third operation, Now make GR for material with the purchase order with 101 movements and during
    this GR second component stock is consumed which is provided to vendor

    Nilesh S. Pagar

    SAP PP Consultant P a g e 14 | 17
    SAP PP Subcontracting Operation

    ✓ Now confirm the Second Operation in the Production Order. When you do GR against subcontract PO, system
    automatically will change the external operation status as “EODL” External Operation Delivered.

    Nilesh S. Pagar

    SAP PP Consultant P a g e 15 | 17
    SAP PP Subcontracting Operation

    ✓ Now confirm the Third Operation in the Production Order using co11n

    Nilesh S. Pagar

    SAP PP Consultant P a g e 16 | 17
    SAP PP Subcontracting Operation

    check the stock of Finished product using MMBE

    Nilesh S. Pagar

    SAP PP Consultant P a g e 17 | 17

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