There are two types of subcontracting in production…
A) Operation subcontracting
B) Assembly subcontracting
Due to some capacity problems or operational issues in manufacturing plant, entire Product is asked to produce outside (at vendor place) and component materials are given to vendor with a subcontracting Purchase Order. Vendor produces the Product and supplies the Product to plant.
- Create material master for Header material ( Product ) and component materials – MM01
- Make settings in Header material’s material master MRP 2 view for subcontracting. – MM02
- Create BOM for Header material – CS01
- Put requirement for Header material – MD61
- MRP run for Header material – MD02
- Convert generated PR to PO – MD04
- Issue component materials to PO- 541 movement – MB1B
- Goods receipt of the semi finished material – MIGO
Master data used:
Header material: 2148
Component materials: 100-410, 100-420, 100-430
Detailed process flow with screen shots
Create material master for Header material ( Product ) and component materials – MM01
Make settings for Header Material in MRP 2 view for subcontracting for special procurement as 30 as shown below
Create BOM for header material as shown below with CS01 with three components as input materials.
Routing also can be created but is not mandatory..
Put requirement for SFG material in MD61
MRP run for Header material – MD02
Check for PR creation in MD04
Convert Purchase Requisition to Purchase Order and provide the details like vendor, Purch. Org, Purch. Group
Click on the component button and you will be able to see the components attached to this Purchase Order..
Now save the PO
Once the components are given to vendor, Issue component materials to Purchase Order with T-code MB1B with 541 movements
Now check for the stock of the raw materials in MMBE they will be shown as Stock provided to vendor as below
After vendor manufactures product he supplies the product to the plant.Goods receipt of the Product material to be done.
Make 101 movement against the Purchase Order to receive the header material (manufactured Product).
Give the relevant details like storage location and others and save
Now check for the consumption of component materials in mmbe
Now check the stock of the header material (Product)