SAP MM- Service Procurement & Subcontracting scenarios in business

SAP MM- Service Procurement & Subcontracting scenarios in business

To work on all these assembly parts/Extra accessories, we need manufacturing unit where we can do all this assembly but its costly and time taking for the preparation and we may have some quality issues, by keeping all this in mind every company would like to go for Sub-contracting process- Which means

Certain companies which will be outsourcing (Giving products to other companies), where they use to work only on this assembly with best quality and take the price for only service.

Examples:

Few of the scenarios with explanation.

1     We have 3 child materials and we need the Parent Material (final product), but we will not assemble or manufacture any tools but for the production/sales requirements we need the final product to be assembled.

we will take the 3 child materials from 3 different vendors and we will maintain a BOM with parent material, after that creating subcontracting order for parent material (BOM will be taken automatically with child materials in components).

Do the GR for all 3 materials, and do the transfer posting for all child materials to vendor through MB1B or ME2O

Now do GR for subcontracting vendor, where you can see movement types 101 and 543.

Child materials

1.      L-shaped metallic plate

2.      Spring

3.      Bolts for fitting

Parent Materials

1.      Metallic plate with full furnished.

Implementing:

·        First, we need to procure the materials which are required to prepare the parent material, here we need to procure L-shaped metallic plate, Spring, Bolts for fitting from the respective vendor.

·        We can create 1 PR, with 3 lines mentioning 3 materials in each line individually with respective vendors or same vendor (based on your requirements)

·        Create PO for above 3 materials and as per the respective quantity and do the MIGO (Goods receipt), so that stock will be stored in the plant premises.

·        Complete all 3 material MIGO as mentioned above

·        Now create a BOM for the parent material, so here BOM is very important for all Parent materials.

·        CS01-Create BOM

·        Enter parent material following with all child materials inside

We are maintaining BOM for-what are the components that required to create a one complete parent material.

·        Now create New PO with Item category L-mention the parent material number, so that automatically child materials will go to Material Data-Components (BOM -we maintained)

·        Now in components we have 3 materials (Child)

·        Al the 3 child materials will go to sub-contract vendor for assembly, to send those materials to vendor we need to perform the movement type.

·        MB1B-stock transfer- we need to transfer the stock of all 3 materials to vendor stock by using the movement type 541,

·        Once the stock is transferred, we can see those stock in MMBE-stock under vendor.

·        Now vendor will deliver the assembled goods to plant and we need to perform the MIGO

·        Perform the MIGO with 101- now the stock should be available in MMBE for parent material