How to do Subcontracting process cycle in SAP with planning run

1. Pre requisites: Master data setup for subcontracting

a. Material Master
T code: MM02
For subcontract material (Header material/ Finish material) use special
procurement indicator 30 (Subcontracting) IN material master, MRP2
Tab.

b. Info record
T code: ME11
Create an info record for the subcontract material (Header material)
with info type Sub contracting.

Maintain subcontracting price in purch. Organization data 1 section

Net price field as shown below.

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c. Source List
T code: ME01
Create a source list for subcontract material with the info record
created in the previous step. Keep the MRP relevant indicator as 1 to
consider this source to planning run (MRP).

d. Create BOM to link subcontract material to component material

T code: CS01
Enter header material (Sub contract material), Plant and BOM Usage 1Production as shown below. Hit Enter key.

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Enter component material, quantity and click enter key. Hit

BOM.

to save

2. MRP run (Planning run) and Purchase requisition creation.

Use T code: MD02 (Single item multi-level), MD03 (Single item single level)
for MRP run for the material.
NOTE: In material master for subcontracting material- MRP1 Tab: I used MRP
Type VB (Re order point planning) and a reorder quantity of 100 to create a
demand for 100 quantity. After MRP run system should generate a purchase
requisition for 100 quantity from subcontract material to fulfill above
requirement.

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After MRP run is done go to the T Code: MD04 (Stock requirement list) to
check the purchase requisition.

Double click on purchase requisition and following screen will be appeared.

Select

to view the purchase requisition in change mode.

Purchase requisition will be display with Item category L (Sub contract).

3. Convert and create a purchase order
Purchase requisition can be converted to a purchase order either in MD04
(Stock requirement list) or ME21N (Purchase order create).
Double click on the purchase requisition in MD04 and following screen will be
appeared.

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Click on

to convert purchase requisition to purchase order.

Drag and drop the requisition number to the

to pull purchase requisition
data to purchase order as shown in the bellow screen.

Complete the additional data and click

to save the purchase order.

Overview of subcontract purchase order. Purchase order can be open again in

ME22N (Change mode) or ME23N (Display mode)
Purchase order item category is L- Subcontracting. Components
will be shown in item details level Material detail tab. Click on
components to vise component details.
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Component material and requirement quantity details will be shown as

bellow.

4. Check Component stock

Click

to run the MMBE stock report.

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250 quantity of component stock is available in storage location 0001.

5. Issue component goods to subcontractor
T code: ME2O
Menu path: Purchase Order Reporting SC Stocks per Vendor
Enter vender code and click

System display current stock of 251 from the component material and
requirement of 200 for the vender.

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To issue the components to subcontract vender tick and select the material
and click on

Click

to confirm.

Above massage will be displayed to confirm posting is complete. Click

confirm. Click on

to

to check the component stock overview.

200 quantity from the component material will be shown as Stock provided
to vender as shown below.

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6. Post the Goods receipt for the subcontracting Purchase order

Receive a partial delivery of 50
T code:
MIGO
Menu path: SAP Menu Logistics Materials Management Inventory
Management Goods Movement Goods Movement (MIGO)
Select Goods receipt, Purchase order and enter the subcontract purchase
order number. Keep the MOV 101. Hit Enter.

Go to quantity Tab and enter the receipt quantity as 40. Change the
component quantity as 80.
Tick the
check for errors and click
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in the bottom of the Material Tab. Click

to post the goods receipt.
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to

MOV 101 has happen for header material (Finished product received from
subcontractor) and MOV 543 has happen automatically for the component
material.

40 qty from finish product material has come to the stock in MMBE stock
report as shown bellow

80 qty from the component material stock provided to vender has been
reduced in the stock report for the component material.

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SAPERPHELP@gmail.com for further clarifications.

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