Forward Exchange

Service providers use the forward exchange function if they urgently need a serviceable part from the subcontractor even though they have not yet sent the unserviceable parts to the subcontractor for repair. The subcontractor sends a serviceable part from his own stock directly to the service provider. The unserviceable part is sent to the subcontractor at a later point in time, who then repairs it and adds it to his own stock. For more information, see Forward Exchange in the MRO Subcontracting Process.

1. 2. You must configure a material provision indicator for deferred delivery. In Customizing, choose Production  Basic Data  Bill of Material  Item Data  Define Material Provision Indicator. For the creation of the outbound delivery in the subcontracting monitor (transaction ADSUBCON), you must customize the delivery type for returns. In Customizing, choose Materials Management Purchasing  Purchasing Documents  Purchase Order  Returns Order  Returns to Vendor and assign the delivery type ‘RLL’ (return delivery to vendor) instead of the default ‘RL’ (returns (purchase order)). Assign users to user parameter ADSUB_FWEX_DIRECT. The user can control if forward exchange items are created directly in the background or if a popup appears so you can confirm that you want forward exchange items to be created. By default the popup appears. Users must have authorization for object M_FW_EXCH. This object checks if a user is authorized to convert a purchase order item to a collection of items that can be used for forward exchange in the subcontracting monitor. You must adapt the Business Addin (BAdI) for goods movement type 262.




1. 1. You can monitor forward exchange using the subcontracting monitor. You can start the forward exchange process in the maintenance phase in the following ways: In the master data: Bill of material Task list (create with subcontracting item and maintain forward exchange information in component overview) You would start the forward exchange process at this point if, for example, you know that certain components always use forward exchange. 1. Directly in the maintenance order During purchasing, you can change purchase order items to include forward exchange information using the Forward Exchange button in the subcontracting monitor. You would use this if, for example, there was an ‘aircraft-on-ground’ situation where a particular part is needed immediately.

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Serialization for return items Special stock and its related fields in the purchase order. This information is used during the goods movements to post the corresponding special stocks. Material provision indicator F for deferred delivery Price determination procedure for forward exchange

To distinguish purchasing new parts in price determination. there is no update of the prices in the purchase order. the prices must be determined in the following way: Price of return item = material price 1. Price of goods receipt item = ∑ return items + refurbishment price/forward exchange fee from the subcontracting info record. For the return items used in forward exchange. . Accounting information for item 011 is transferred to the maintenance order.Price Determination for Forward Exchange Purpose Forward exchange uses standard item categories. Consequently. costs cannot be accounted because the price information cannot be transferred to the maintenance order without this link. see SAP Note 964543. Items that are accounted in the plant maintenance order For more information about configuring these scenarios. The following example shows a purchase order item for goods receipt (013) and two return items (011 as the previous main component and 012 as consumable). 1. see SAP Note 964543. You must adapt the logic for price determination For information about these prerequisites. Item/ Account Assignment 011 012 013 /F/order 1 Material/Qty Material Price 60 25 100 32 Refurbishment Price Item Price Return? B/1 C/1 A/1 60 25 117 X X With each of the following goods movements. There are no stock changes. Process Flow 1. we recommend you take note of the following scenarios: Items that are not accounted in the plant maintenance order 1. If the material prices (in MM03) change after price determination in the purchase order. the link to the plant maintenance order must be removed in order to get the stock update. Customers using special stock do not need to use this price determination procedure. you must define a separate price determination procedure. Prerequisites 1. Goods movement 101 takes place. You must define conditions 1. The main component can have the same or a different material to 013. values are posted: 1. To ensure that cost accounting is carried out correctly for the maintenance order. For price determination in forward exchange.

1. 1. The part from the subcontractor is added to stock and the maintenance order costs are reduced by €100 because the value of the part back in stock Goods movement: 262 (return delivery for order) Stock A = +1 Order is credited +100 Material B return item is sent to the subcontractor. In the external procurement details for the operation. The forward exchange process can be triggered at different stages of the subcontracting process and can be monitored in the subcontracting monitor: Forward Exchange in Maintenance Orders You can trigger the forward exchange process while you are creating a maintenance order. so the stock is reduced by 1 piece and the value of stock is reduced by €25. 1. . goods movement 262 takes place in the background. Therefore you have to do the following: 1.) on the External tab page. set the subcontracting indicator (Subcontr. Material value C = -25 1.. 1. Order costs/is debited: 117 (Material prices A (60)+ B (25) + Fee(32)) When the goods receipt arrives. Goods movement 161 (goods return) Stock C = -1 1. Goods movement: 161 (goods return) Stock B = -1 Material value B = -60 Material C return item is sent to the subcontractor. State of stock: Stock of material B = -1 Stock of material C = -1 Stock of material A = +1 Material value +15 (because the part has been repaired and is therefore worth more) Order is debited = 17 Forward Exchange in the MRO Subcontracting Process Forward exchange is a function within subcontracting for MRO processes. ..Goods movement: 101 (goods receipt) Stock A = +/-0 1. so the stock is reduced by 1 piece and the value of stock is reduced by €60. 2. double-click on the item number to set the material provision indicator (MPI) to ‘X’ for the part to be received from subcontractor and ‘F’ for all other parts (main component or consumables). On the Components tab page.

Perform forward exchange for an existing subcontracting purchase order or a purchase order you have just created for a normal repair (Subcontracting type ‘1’ Refurbishment with unchanged material number). This object checks if a user is authorized to convert a purchase order item into forward exchange items. The subcontracting type (SERRU) in the item is ‘3’ (Replacement) and the item category is ‘L’ (Subcontracting). The item from the purchase requisition is deactivated and becomes statistical. In the subcontracting monitor. You must check the following prerequisites: 1. choose Forward Exch. The subcontracting type (SERRU) and MPI of the statistical item of the purchase order created during forward exchange remains unchanged.You can also copy components directly from a task list or bill of materials. The subcontracting type must be set to 1 or 2 on the Spec2000/SC tab page (for business function AD_MRO_CI_3) or the Subcontracting tab page (for business function LOG_EAM_ROTSUB). This represents forward exchange. Create a forward exchange purchase order from a purchase requisition created from a maintenance order by choosing Create PO via PR. When the system creates a purchase order with forward exchange information. By default the dialog box appears but you can control the appearance by making the desired setting under System  User Profile  Own Data  Add Parameter. The main component ‘X’ becomes the item in the purchase requisition and all other components appear with the material provision indicator ‘F’. 3. There must be no follow-up documents. You can control if the creation of forward exchange items takes place immediately with a dialog box. Forward Exchange in Purchase Requisitions If the system creates a purchase requisition from the maintenance order. Forward Exchange in Purchase Orders You can trigger the forward exchange process while you are creating a purchase order In the subcontracting monitor (transaction ADSUBCON) you can: 1. the forward exchange information is transferred automatically to the purchase requisition. There must be no purchase order items already containing forward exchange information. 2. the subcontracting item is split into several purchase order items. The statistical purchase order items are then visible in the subcontracting monitor in the tree hierarchy on the left with the related subitems underneath. with the quick info text Transform purchase order item into forward exchange structure. you can see: 1. If you scroll to the right within this hierarchy. Subitems that are forward exchange-relevant marked with .

The higher level item number The components flagged for deferred delivery are then transferred to a return item In the selection screen for the subcontracting monitor. you can set the forward exchange indicator so that only forward exchange purchase orders appear in the hierarchy. Once you have created a forward exchange purchase order. the statistical item is grayed out and the two or more subitems are active. You need one item for each posting (goods issue and goods receipt). You can change the requirement date. Components flagged for deferred delivery 3. You must use forward exchange for a complete quantity of a component. . Serial Numbers If subcontracting type 1 or 2. serial numbers already maintained in the purchase order item are copied to the return item that is created for the main component.2. you cannot specify a partial quantity. You can then post the goods issue and goods receipts for the purchase orders using with the quick info text Post goods receipt for purchase order or with the quick info text Post goods issue for purchase order.