Technical Articles
Subcontracting Process in Extended Warehouse Management
Introduction:
Subcontracting is the process where child materials (components) are issued to an external vendor for final assembly. In this blog, I will try to explain the configuration and steps required to accomplish the subcontracting process with EWM managed.
Configuration required:
Document type and Item type integration:
When we issue the component material from our premises for the subcontracting process, an outbound delivery will be created, and that outbound delivery will then be integrated with the warehouse management system (EWM).
ERP delivery type and item category of outbound delivery for subcontracting:
LB- Delivery type for subcontracting
(SPRO- Logistics Execution- Shipping- Deliveries- Define Delivery Types)
LBN-Material provided item category for subcontracting
(SPRO- Logistics Execution- Shipping- Deliveries- Define Delivery Item Categories)
EWM document type and item type for the subcontracting delivery:
To obtain the document type and item type configuration, activate the BC set- /SCWM/DLV_OUTBOUND_SUBCONTRACTOR.
T code: SCPR20
After BC set has activated, we can see the configuration values as below,
Mapping of ERP & EWM deliveries:
To start delivery integration between ERP and EWM, we must map the ERP document type and item type to the EWM system.
Map Document Types from ERP System to EWM:
(SPRO- SCM Extended Warehouse Management- Extended Warehouse Management- Interfaces- Delivery Processing- Map Document Types from ERP System to EWM)
Map Item Types from ERP System to EWM:
(SPRO- SCM Extended Warehouse Management- Extended Warehouse Management- Interfaces- Delivery Processing-Map Item Types from ERP System to EWM)
Assign the delivery type to plant:
Maintain the subcontracting delivery type (LB) against the plant so that the system will select this delivery type to make an outbound delivery when the components are issued from the plant (issuing plant or supplying plant).
(SPRO- Materials Management- Purchasing- Purchase Order- Set Up Subcontract Order)
How the subcontracting outbound delivery gets the ship-to-party:
To create an outbound delivery, the “ship-to-party” (customer) must be present. Allow the system to pick up the ship-to-party from the supplier, create a plant as the customer, and assign it to the subcontracting vendor.
Maintain the sales area to the plant:
The sales area maintained to the plant will be used to establish the shipping details in an outbound delivery. And extend your material to this sales area.
(SPRO-Materials Management-Purchasing-Purchase Order-Set up Stock Transport Order-Define Shipping Data for Plants)
Process steps:
Create a subcontracting purchase order:
Outbound delivery- subcontracting
T code: ADSUBCON/ME2O
Outbound delivery is now created, as seen in VL03N and delivery also distributed to EWM system.
Goods issue from EWM storage type:
Outbound delivery has been created in the ERP and distributed to the EWM system to pick and do the goods issue.
T code: /SCWM/PRDO or Fiori App- Run outbound delivery
Create a warehouse task,
Open the app “Process warehouse task” and confirm it,
Warehouse task now confirmed,
Do the goods issue,
Goods issue completed and see the material document from the outbound delivery,
Once the components issue in the system is completed, the components are shipped to the subcontracting supplier physically. And once the supplier has finished the assembly, we need to receive the material at our warehouse.
Subcontracting Finished goods receipt:
T code: VL31N (create an inbound delivery and distribute to the EWM system)
Now, process the goods receipt in EWM system
T code: /SCWM/PRDI or Fiori App-Change inbound deliveries
Confirm the open put away warehouse task,
Once the warehouse task is confirmed, the goods receipt will be confirmed automatically (or we may execute the goods receipt first, then the warehouse task)
Conclusion:
In the blog post above, I discussed the EWM subcontracting procedure as well as picking and put away using a Fiori application. Please take the time to read the blog and provide comments.
Regards,
Kannan Chokkanathan
Is it anyhow different from usual goods issue + goods receipt in EWM? Like for example is it maybe not possible to post GR before GI is posted? Is maybe any reference documents available in both in and out deliveries?
Hi Daniil,
Thank you for your patience while I responded.
I was able to successfully confirm the warehouse putaway task without error when I tested the same scenario without sending the component with reference to the current PO (but stock was already there that was sent with reference of another PO). However, the queue struck without any proper error message, and a dump also occurred in ST22.
So I've escalated the issue to SAP as well; I'll provide an update as soon as I hear back from SAP.
Thank you.
Hi,
how do you handle it when the components that go to the subcontractor are batched or have serial numbers ? These have to be entered at goods receipt.
These would be a good topic for this blog.
Hi Jan Werneke
Thank you for your patience while I responded.
The blog example also just batch managed stock, therefore we need to provide the batch in the material components in the PO/OBD and enter the finished material batch when creating the Inbound delivery in VL31N or EWM change inbound delivery app.
However, I need to double-check the serial no managed stock send and receipt.
Thank you,
thanks for sharing
Thank you Rajesh
Hi @kannanchokkanathan1,
Could you please share a screenshot of how the background movement type is posted for this good issue of outbound delivery? Additionally, I would like to know if a transfer posting can be done without using the background movement type that is typically used in the normal subcontracting process.
Thank you!
Hi @kannanchokkanathan1,
I have tested the subcontracting process, below result screenshot of the movement types which gets posted in background to ERP system,
mb51
ADSUBCON
Hi Pratik,
Thank you for your patience.
The different subcontracting movement types are the same, but before getting the material documents and accounting documents from the ERP side, we must understand concepts like using the EWM we are doing the warehouse operation and these operation changes everything will be updated in ERP side.
Thank you.
Hi
@kannanchokkanathan1
This is really helpful Thanks so much for sharing.
Hi Shoaib, Thank you for your mention.
Hi,
I'm facing an error after Confirming the IBD. In ECC -SMQ2 : Error is "Goods receipt for inbound delivery is not allowed in AD Subcontracting"
Could you help me out for this
Regards,
Krishna
Hi Krishna,
Thank you for your patience.
Could you provide more details and process steps with screenshots to help me analyze the problem?
Thank you.
Hi Kannan,
There is an important element, PED and owner for the Warehouse, which are different for Consignment process. You have to mention that.
Tx
M
Hi Moizuddin,
Thank you for your patience while I responded.
Yes, if it is a consignment process, the attention point would undoubtedly be the owner and PED, but since it is a subcontracting process, we aren't required to focus as there is no change.
Thank you.
Thanks for sharing a wonderful blog, much appreciated.
Hi Kannan
Very nice article - Can you explain how to return components from Subcontracting stock with Vendor back to unrestricted stock in a embedded EWM scenario.
Thanks in advance