Sub-contracting Business Process For MRO (Unserialized Parts-EHP4)

Definition:

Any kind of services like material/equipment sent out for repairing will be mapped in SAP through this type of process.

Process At Glance:

The component to be sent to vendor is required to post storage location at damaged valuation & Maintenance dept. will create Sub-Contracting Purchase Requisition entering line item as damaged component .Material management people will convert this Purchase Requisition to Sub-contracting PO & add the service & spare parts if required by vendor and they will issue component as well as spare parts to vendor. After completion of repair work, Material management will receive the Serviced Component & payment will be done after invoice verification. Service Entry Sheet will be done in two levels, the planner will update the Services & the Maintenance manager will approve the services for further processing.

New Features 1) Subcontracting Indicator selecting the subcontracting indicator on the detail screen for external operations ensures that all components linked to the operation are treated as subcontracting components. 2) Externally processed with subcontracting indicator 3) Together with the External Processing control key, selecting this indicator results in the automatic creation of a purchase requisition for the subcontracted work.

Material Provision Indicator

1) The material provision indicator (MPI) is used to identify the subcontracting type of a part. The following indicators are provided:

2) Rework Material to Subcontractor (Value S in the SAP standard system) 3) Rework Material from Subcontractor (Value X in the SAP standard system) 4) Subcontracting provided to the subcontractor as consumables) (Initial in the SAP standard system)

Apart from the values Subcontracting, Rework Material to Subcontractor; and Rework Material from Subcontractor, you cannot use any other MPI provided on component level of the maintenance order.

The following scenarios are possible for MPI:

Recursive repair

You send a part to the subcontractor, who returns it with the same material number: 1) You create the main part with MPI Rework Material to Subcontractor, possibly with consumables. 2) You do not have to create the returned part with MPI Rework Material from Subcontractor.

Planned material change (modification)

You send part A to the subcontractor, who returns part B. You have to create two parts in the system:

1) Part A with MPI Rework Material to Subcontractor

2) Part B with MPI Rework Material from Subcontractor

Subcontracting Monitor The subcontracting monitor provides a comprehensive overview of all relevant information for parts used within the subcontracting process: 1) Purchase requisitions, purchase orders, deliveries, and material documents are displayed in a tree structure by plant, vendor, and material 2) Stock overview for the selected materials is displayed

Function of Subcontracting Monitor

The Subcontracting Monitor enables you to: 1) Create a purchase order from a purchase requisition 2) Create an outbound delivery for a purchase order3) Post a transfer posting for a purchase order 4) Post a goods receipt for a purchase order 5) Access the standard transactions to display or edit documents from the Subcontracting Monitor tree 6) Refresh the Subcontracting Monitor

For SUBCONTRACTING PROCESS STEPS AND FLOW CHART please refer the attachment.

Br

Rakesh