What is subcontracting process in SAP?

In subcontracting process, raw materials are provided to subcontracting vendor. It’s being processed by subcontracting vendor, convert it to semi-finish material and deliver back. Many a times, more than one subcontractor is used for manufacturing at different level of BOM.

What is sub contract in SAP MM?

Subcontracting is one of the procurement processes available in MM. In this process, components are shared to vendor to get the final product.

How to create a subcontracting purchase order in SAP?

Example of Subcontracting Process in SAP. Create a Subcontracting Purchase Order. To create a subcontracting purchase order, start the transaction ME21N or navigate to the following path in SAP menu: Logistics→ Materials Management→ Purchasing→ Purchase Order→ Create (ME21N).

What’s the process for subcontracting with SAP Community?

The following process to be followed for subcontracting. 1. Item code (material master) to be created at the stage of before dyeing. 2. Item code (material master) to be created after Dyeing as subcontracted item. (F30) 3. Bill of material to becreated for the material (2) calling for material (1)

How to create a subcontracting record in SAP?

GI to subcontracting vendor: through movement type 541. Movement type 543 is displayed to cancel the material cost account. If the subcontracting order has to be generated through materials planning,the special procurement key has to be set in MRP 2 screen. – To create the Subcon Info Record : Tcode ME11 – Info Category – Click Subcontracting

What do you need to know about subcontract process?

You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor . Vendor shall process the item / use the item provided & supply the final item. 1.Create the finished goods material code. 2.Maintain the BOM for the material.