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Author's profile photo PRASOON AK

SubContracting with Goods Issue from Another Plant

Hi Friends,

   I would like to share the functionality of subcontracting with goods issue from alternate plant.

Scenario:

   There are two plants under the same company code – say plant 1 and Plant 2. Plant 1 will issue the component materials to subcontractor and the vendor will send the processed goods to the Plant 2, against the subcontract PO. Here, its like a combination of STO and subcontracting.

   Let us see how we can map the scenario to SAP.

1. Go to OMD9 transaction and create a special procurement key, say Z1 for plant 2 by copying the special procurement key 30.

2. Maintain the withdrawal from alternate plant indicator as well as the issuing plant (plant 1) as shown below:


4. Go to material master of the component to be issued by plant 1. Go to MRP2 view of the components with plant 2 and maintain the special procurement key created in step 1 & 2.

/wp-content/uploads/2014/09/4_545482.png

4. Create a subcontracting PO for the plant 2:

/wp-content/uploads/2014/09/6_545483.png

5. Check the components and the planned automatically populated in the components window:

  •      System will automatically populate the alternative issuing plant as the plant for components:

/wp-content/uploads/2014/09/7_545484.png

  • Save the PO.

6. The reservation / requirements for the relevant subcomponents will be generated for the alternate plant and the same would be displayed in MD04.

6. Issue the components from alternate plant (plant 1) in MB1B with 541 movement:/wp-content/uploads/2014/09/8_545485.png

7. Do GR for the subcontract PO:

  •     Here, for the sub-components, the plant will be automatically populated as the alternate plant (Plant 1).

/wp-content/uploads/2014/09/9_545486.png

8. Post the Document and check the accounting document.

/wp-content/uploads/2014/09/10_545487.png

Result: The Main material is received in plant 2 from subcontractor and the components are consumed from alternate plant (plant 1).

Reference:  588396 – Subcontracting with components from another plant

Hope its useful.

Regards,

Prasoon

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      17 Comments
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      Author's profile photo Former Member
      Former Member

      Prasoon,

      Excellent Document & Many SAP MM consultant are excited about your post & now Blogs!!!!

      Not even thought of such scenaros....My idea to yu...better U start writing the SAP book on case studies &  publish it....I will be first to go thru tthat!!!!

      1no.

      Author's profile photo Sudeep A
      Sudeep A

      Good one Prasoon. Keep sharing.

      Regards,

      Sudeep.

      Author's profile photo Mohsin Abbasi
      Mohsin Abbasi

      Dear Prasoon,
      Finally Back BLOG..

      Regards

      Mohsin Abbasi

      Author's profile photo Former Member
      Former Member

      Hello Prasoon,

      Really nice doc. Kudos to you

      Can you plz create a doc on sub contracting scenario where the vendor will only do the service.


      eg: We will send the bottels to the vendor and he will only clean the bottles and send back to us. We will just pay some amount for servicing the vendors.

      Author's profile photo PRASOON AK
      PRASOON AK
      Blog Post Author

      Hi,

         You may check the concept of recursive BOM where you can send and receive the same material and pay only for the service. Recursive BOM - Product Cost Planning (CO-PC-PCP) - SAP Library

      Regards,

      AKPT

      Author's profile photo SAP WARRIOR
      SAP WARRIOR

      Hi Prasoon

      Really very nice document. Keep writing so that SAP MM folks could get benefits of your exp.

      Manish

      Author's profile photo Chaitanya Kulkarni
      Chaitanya Kulkarni

      Hi Prasoon

      Excellent ...!!....Very useful document.

      Keep posting such documents.....  

      Regards,

      Chaitanya

      Author's profile photo Partha sarathy
      Partha sarathy

      whether you have maintained your valuation at plant or company level.

      If its plant level how to caluclate the price difference

      Author's profile photo PRASOON AK
      PRASOON AK
      Blog Post Author

      Hi,

         If you check the accounting document posted at the end of the document, your question will be answered!!

      Regards,

      Prasoon

      Author's profile photo Former Member
      Former Member

      Very informative document. Please keep sharing

      Regards

      Thiyagaraj

      Author's profile photo Periyakaruppan Renganathan
      Periyakaruppan Renganathan

      Same Scenario has been requested earlier from my client.

      They are facing Material storage and packing manpower issues.

      Now I can give this solution to reduce the transportation cost,Manpower cost for packing.

      Thanks Prasoon for giving this wonderful document.

      Thanks & Regards,

      Periyakaruppan R

      Author's profile photo Former Member
      Former Member

      Very good scenario. I am able to give a good solution to my client after reading this article

      Author's profile photo Former Member
      Former Member

      Thank you for sharing Really very nice document

      Author's profile photo Former Member
      Former Member

      Dear,

      How about regularity compliance i.e. Job work challan, excise document when moving material between plant etc ?

      Regards,

      Nikunj Thaker

      Author's profile photo Former Member
      Former Member

      Fantastic solution! My company has recently implemented a subcontracting solution and this has been a sticking point!! Thank you for the advice!!

      Author's profile photo Shuxin Li
      Shuxin Li

      Thank you very much for sharing this solution. We have a similar scenario and this document helped a lot!

      Author's profile photo Narish Jalan
      Narish Jalan

      Dear Prasoon

      Really a good document. Keep on sharing such document.

      Would you please plan on a document where unprocessed goods will be returned by the subcontracting vendor to receiving PLANT along with processed document.

      Regards,

      Siddhartha