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Hi Friends,

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


   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:

  • Ensure that special procurement indicator is L (subcontracting)

3. Check the BOM :


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.


4. Create a subcontracting PO for the plant 2:


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:


  • 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).


8. Post the Document and check the accounting document.


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.



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  1. Former Member


    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!!!!


  2. 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.

    1. PRASOON AK Post author


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



  3. Former Member

    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

  4. Former Member

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


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