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Subcontracting
Subcontracting
2010
Subcontracting v0
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Subcontracting
CONTENTS: 1) 2) 3) 4) Introduction Customizing settings Master data settings Process demonstration 1 - Create subcontracting Purchase Order 2 - Create Outbound delivery 3 - Confirm TO and post Goods Issue 4 - Create Inbound delivery 5 - Confirm TO and Post Goods Receipt 6 - Invoice verification
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In this document I will demonstrate the subcontracting process using a HUM WMS. As preparation for this demo I have brought the no. of materials in warehouse DE1 from 1 to 4. In subcontracting, the vendor (subcontractor) is provided with input materials (components) by the buying entity, which are then used to manufacture the end product. This involves the following steps: 1. You order the end product by means of a subcontract order. The components that the vendor needs to manufacture the end product are specified in the purchase order. 2. In Inventory Management, the components are posted to the stock of material provided to the vendor. The components are then supplied to the vendor. 3. The vendor performs the necessary service (i.e. does the required assembly or processing work) and delivers the ordered material (the end product). You post the consumption of the components. 4. If, after the goods receipt has been posted, the vendor informs you that a larger or smaller quantity of the components was actually consumed then planned in the purchase order, you must make an adjustment posting. 5. The vendor issues an invoice for the service provided. This invoice is then checked in Invoice Verification.
2) Customizing settings
The following are some customizing settings used by the process. Calculation schema When creating the Purchase Order, the system must be able to find a price calculation schema. For this it uses the schema group of the Purchase organisation(1000) and the schema group of the vendor(1100) . Schema group of the vendor: Call up the transaction as follows: Logistics Materials Management Purchasing Master Data Vendor Menu Path Purchasing Display (Current) Transaction code MK03
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Schema group Vendor = 01 Schema group purchase organisation: Call up the customizing transaction as follows: IMG Materials Management Purchasing Conditions Define Price Menu Path Determination Process Define Schema Group Assignment of Schema Group to Purchasing Organization Transaction code n.a.
Schema group purchase organisation = 1000 Schema Determination: Call up the customizing transaction as follows: IMG Materials Management Purchasing Conditions Define Price Menu Path Determination Process > Define Schema Determination Determine Calculation Schema for Standard Purchase Orders Transaction code n.a.
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You need to define in customizing which delivery type the system needs to use for delivering the goods to the subcontractor for the supplying plant. Call up the customizing transaction as follows: IMG Materials Management Purchasing Purchase Order Set Up Menu Path Subcontract Order Transaction code n.a.
Supplying plant=1000
Another WMTA output has been created to automatically create the TO for the inbound delivery.
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Call up the transaction as follows: Logistics Materials Management Master Data Info Record Change Menu Path Transaction code ME12
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As already indicated materials 101-110 and 100-120 are components and will be provided to the subcontractor, who will send back the assembled material 101-100. So, inventory at start of the process is: - 101-100 = 4 ST, finished product - 101-110 = 124 ST, component - 100-120 = 140 ST, component 1 - Create subcontracting Purchase Order: I will use purchase order type NB, but its best for a new implementation to copy NB and create something like a ZSC order type and make some modifications to restrict its use to subcontracting. Call up the transaction as follows: Logistics Materials Management Purchasing Purchase Order Create Menu Path Transaction Code ME21N
Enter vendor no., material no., qty, plant and stor.loc. Note that Item category L has been entered for item 10. Click on button to check for errors in the PO.
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You can also view the BOM explosion by going to tab Material data and then click on button
If column Prod.stor.Loc. is empty fill it with the storage location of the components, else you need to enter it in the next step or maintain a default value in the material master. When done click on button , then save the PO by clicking on button
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The system will prompt with a pop-up window for each selected line, where the storage location and the quantity can be maintained . Click on button to proceed.
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Enter the del. No. which can be taken from the SC monitoring screen, then click on button
As can be seen, the transfer order has been created automatically. Display the delivery by selecting it and then click on button .
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As can be seen shipto party=1100 and document type=ZLB. Display Transfer Order(162) prior to confirmation.
Call up the transaction as follows: Logistics Logistics Execution Internal Whse Processes Stock Transfer Menu Path Display Transfer Order Single Document Transaction Code LT21
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Call up the transaction as follows: Logistics Logistics Execution Internal Whse Processes Stock Transfer Menu Path Confirm Transfer Order Single Document In One Step Transaction Code LT12
Display GI document 4900036734 by positioning the cursor on the line with the document no. and
As can be seen the stock has been posted to vendor stock using movement type 541 and with special movement indicator O.
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Lets check the Stock overview of material 101-110. Call up the transaction as follows: Logistics Materials Management Inventory Management Environment Menu Path Stock Stock Overview Transaction Code MMBE
Note the 20 pc of stock which has been provided to the vendor. You can also click on the button on the SC monitoring screen to check the stock.
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Mark the item OK, and check if this step has any errors by clicking on button If everything is OK, as is in this case then click on button
Next we display the document flow of the created delivery. Call up the transaction as follows:
Menu Path Transaction Code Logistics Materials Management Purchasing Purchase Order Inbound Delivery Display VL33N
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As can be seen the Handling Unit(HU and Transfer Order(TO) were created automatically due to the output conditions which were setup. Display TO 163 (tx LT21) or position the cursor on the line with the TO no. and then click on button
Display the GR document. by positioning the cursor on the line with the document no. and then click
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What must be noticed here is that the components are posted out of stock with movement type 543 and special movement indicator O, while the finished product is posted into stock using movement type 101. Bin overview report( tx LX03).
- 101-100 = 4 ST, finished product - 101-110 = 124 ST, component - 100-120 = 140 ST, component 20 ST finished products were requested which required 20 ST of each component. The inventory at end of the process is: - 101-100 = 24 ST, finished product - 101-110 = 104 ST, component - 100-120 = 120 ST, component
6 - Invoice verification: Posting of the invoice of the subcontractor/vendor. Call up the transaction as follows:
Menu Path Transaction Code Logistics Materials Management Purchasing Purchase Order Follow-On Functions Logistics Invoice Verification MIRO
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Enter the relevant data such as PO no., invoice date, amount, tax code, flag PO item for OK, Simulate the posting and if everything is OK, then click on button
Display Invoice:
Call up the transaction as follows: Logistics Materials Management Logistics Invoice Verification Further Menu Path Processing Display Invoice Document Transaction Code MIR4
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On tab Payment a payment block has been set by the system because according to the payment terms we can wait 14 days before the first period is due for payment. Click on button
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In the next step we are going to release the blocked invoice. Call up the transaction as follows: Logistics Materials Management Logistics Invoice Verification Further Menu Path Processing Release Blocked Invoices Transaction Code MRBR
Enter the company code and the invoice document no.(and fiscal year) to restrict the selection and then click on button
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Select the field with the block X and then click on button
After the block has been deleted we need to confirm this to the database by clicking on button
We now display the invoice again to check that the invoice is now free for payment(tx MIR4).
Now that the payment block has been removed, the invoice can be paid.
Click on button to leave the transaction.
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