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SUBCONTRACTING FOR MRO PROCESSES

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TABLE OF CONTENT
1 Subcontracting for MRO Processes 1.1 MRO Subcontracting Process 1.2 MRO Subcontracting in Maintenance Orders 1.2.1 MRO Subcontracting in Refurbishment Orders 1.3 MRO Subcontracting in Purchasing 1.3.1 Subcontract Purchase Requisitions and Purchase Orders 1.3.1.1 Converting Planned Orders to Subcontracting Purchase Requisition 1.3.1.2 Creation of Subcontracting Purchase Requisitions from MRP 1.3.2 Serial Number Management in Subcontract Purchase Orders and Purc 1.3.3 Special Stock for Subcontracting for MRO Processes 1.3.3.1 Special Stock in Subcontract Purchase Requisitions and Purchase 1.4 MRO Subcontracting in Outbound Deliveries 1.5 MRO Subcontracting in Goods Movements 1.5.1 Provision of Parts to Subcontractor 1.5.2 Receipt of Repaired Parts from the Subcontractor (Goods Receipt) 1.5.3 Cancellation of Goods Movements 1.5.4 Subsequent Adjustments 1.6 Subcontracting Monitor 1.7 Material Provision Indicator 1.8 Subcontracting Types 1.9 Subcontracting Scenarios 1.10 RMA Orders in Subcontracting 1.11 Forward Exchange 1.11.1 Forward Exchange in the MRO Subcontracting Process 1.11.2 Price Determination for Forward Exchange

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1 Subcontracting for MRO Processes


Subcontracting for MRO Processes provides you with a process to subcontract serialized and unserialized rework parts. A service provider receives a part (rotable) for maintenance or repair from a customer. The service provider places the part in stock in an unserviceable condition and sends the part to a subcontractor for repair, refurbishment, or overhaul. Once the work is complete, the subcontractor returns the part to stock in a serviceable condition to the service provider, who sends it back to the customer.

Note
Subcontracting for MRO Processes supports the maintenance, repair, and overhaul (MRO) business process. If you have another type of business, such as production, you should use the MM-IM subcontracting solution.

Implementation Considerations
To use MRO subcontracting, you must activate the following business functions: Refurbishment and Subcontracting (LOG_EAM_ROTSUB) Refurbishment and Subcontracting 2 (LOG_EAM_ROTSUB_2) Serial Numbers in Purchasing (LOG_MM_SERNO)

Features
Subcontracting monitor to provide a comprehensive overview of all relevant information for a material or equipment used in the subcontracting process. Serial number management in the subcontract purchase order and purchase requisition. Material provision indicators to identify the use of a component entry in external processing. Subcontracting types to suit your subcontracting scenario. Subcontracting for special stock, such as unvalued sales order stock and unvalued project stock. Transfer posting function (MB1B) and goods receipt for purchase order function (MB01). Forward exchange whereby 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. Goods movements using the Goods Receipt Order function (MIGO). Return material authorization (RMA) orders. Partial delivery where it is possible to have multiple goods issues with or without outbound deliveries. You can use subcontracting operations within refurbishment orders (standard order type PM04).

Constraints
The following functions are not supported in Subcontracting for MRO Processes: Repair of configurable parts Unplanned material exchange Customer stock

Note
If you want to use these functions, you must ensure that the following business functions are active: A&D Maintenance, Repair and Overhaul (AD_MRO_CI_1) Material Exchange with ATP Check (AD_MRO_CI_2) Rotables/Sharing of Spare Parts, Subcontracting Improvements (AD_MRO_CI_3)

MRO Subcontracting Process


Process Flow

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1. 2. 3. 4.

The service provider receives an unserviceable part for maintenance, repair, or overhaul from a customer. The service provider creates a maintenance order in the system. From the maintenance order, the system creates a purchase requisition for external repair and overhaul service. In the purchase requisition, the system creates an item with the subcontracting item category L for each part to be repaired.
The system enters the material and quantity both as the item and as components for the item. Additional parts that are provided (consumables) are entered as components.

5. The service provider converts the purchase requisition into a purchase order for the external repair and overhaul service.
The individual purchase order item contains the part that is expected back after the repair service. This could be the same part or a different one. The component level of each individual purchase requisition item or purchase order item contains the main part to be repaired, as well as all additional materials that should be consumed during the repair process (consumables).

6. The service provider sends the part to be repaired to the subcontractor via an outbound delivery.
The parts that are provided to the subcontractor are managed as stock provided to vendor (subcontracting stock). The provision represents a transfer posting from unrestricted-use stock to the stock of material provided to vendor (subcontracting stock).

7. The subcontractor repairs, exchanges, modifies, or replaces the part and returns the serviceable part to the service provider. 8. The service provider creates a goods receipt posting for the end product with reference to the subcontracting item in the purchase order, and a consumption posting for the components from the subcontracting stock.
The end product can be returned to the following stock types:

Unrestricted stock Quality inspection stock 9. The service provider: a. Completes the maintenance order. b. Receives and checks the invoice related to the repair. 10. The service provider returns the now serviceable part to the customer.

MRO Subcontracting in Maintenance Orders


Use
You can create maintenance orders (including out by a subcontractor. refurbishment orders such as order type PM04) specifying operations that are carried

Prerequisites
On the Operations tab page of the maintenance order, you have entered a control key that is defined for external processing. You can maintain the control key for this in Customizing, under Plant Maintenance and Customer Service Maintenance and Service Processing Maintenance and Service Orders Functions and Settings for Order Types Control Key Maintain Control Keys. You have selected stock item category L or you have defined your own valid item category. Only valid item categories are permitted for MROsubcontracting. Stock item category L is provided for orders with an external operation, however you can also define your own valid item categories, which are stored in table T418, indicator KZBSF. You can define valid item categories by selecting the Inventory Management indicator for an item category in Customizing for Plant Maintenance and Customer Service, under Master Data in Plant Maintenance and Customer Service Bills of Material Item Data Define Item Categories.

Features
Subcontracting indicator Selecting the subcontracting indicator on the detail screen for external operations ensures that all components linked to the operation are treated as subcontracting components.

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Externally Processed with Subcontracting indicator Together with the External Processing control key, selecting this indicator results in the automatic creation of a purchase requisition for the subcontracted work. Valid item category Only valid item categories are permitted for MROsubcontracting. Item category L (stock item) is provided for orders with an external operation.

Activities
When you create a maintenance order for MRO subcontracting:
In the maintenance order, you select the control key indicating external processing for one operation On the External Processing Operation detail screen, you select Subcontr. (Subcontracting). You assign components to the operation with the control key specifying external processing. Set the material provision indicator (MPI) on the Component detail screen by choosing Gen. Data. At this point in the subcontracting process, you can specify whether the component is:

Rework Material to Subcontractor Rework Material from Subcontractor If the entry is initial (blank), the component is provided to the subcontractor as consumable. This is initial in the SAP standard system.
Apart from the values Rework Material to Subcontractor, Rework Material from Subcontractor, and initial, you cannot use any other MPIs provided at component level of the maintenance order.

We recommend you enter the subcontractor, if known, in the Vendor field for the external operation. This provides you with visibility of the subcontracting requirement in material requirements planning (MRP) for specific vendors. The vendor should be added after the components have been defined and the MPI has been set. Only in that case can the purchasing info record be found in the system and the data updated accordingly.

You can enter all of the above data in a task list that you can then add to each PM/CS order for subcontracting purposes.
When you save the maintenance order, the system automatically creates the subcontract purchase requisition. On operation level of the PM/CS order, you use the Res./Purc.Req. (Reservation Relevance/Generation of Purchase Requisition) indicator to determine whether the purchase requisition is created immediately when saving the maintenance order, after order release, or never. The purchase requisition is later transferred into the purchase order. If you make changes to the maintenance order on component level after creation of the purchase requisition, the changes are reflected in that purchase requisition. However, if the purchase order has already been created, these changes are not reflected in the purchase order.

We recommend you make changes to the maintenance order before creation of the purchase order. There is a workflow available to inform the purchasing department in case changes are done after purchase order creation (TS20000650)

1.2.1 MRO Subcontracting in Refurbishment Orders


In aircraft or other technical objects such as engines, high value components (rotables) are often used in a remove-install-rework scenario. The high value components are replaced in cases of damage by a serviceable rotable and then refurbished at a later point in time using a separate order. The refurbishment of high value faulty rotables is of considerable economic importance for companies, and is a core process in plant maintenance. The rework can either be executed internally (inhouse repair) or by an external vendor (subcontractor).

Note
Partial subcontracting of certain repair tasks is also possible. If an external service is needed to refurbish the part, one or more maintenance tasks are transferred to a subcontractor. The part to be refurbished, along with the provided components that are to be installed in the part during the maintenance process (if required), will be delivered to the subcontractor. After rework the part returned by the subcontractor is received into stock. The refurbishment process can be started manually by creating a maintenance order or be triggered from the material requirements planning (MRP) based on the current stock situation. Planned orders created in MRP are converted into refurbishment orders to start the refurbishment process. Quantities and dates for the refurbishment order are provided from the planning process Creating refurbishment orders from planned orders is only possible for materials where the spare parts class code is set in the material master record. For more information, see Converting Planned Orders to Refurbishment Orders. The following scenarios are supported for the subcontracting process with refurbishment order:

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Standard Repair Normal Repair - Complete Subcontracting with Refurbishment Order Normal Repair - Partial Subcontracting at Operation Level with Refurbishment Order Planned Modification Unplanned Modification Unit Exchange (same as standard plant maintenance order scenario) Replacement (same as standard plant maintenance order scenario) Subcontracting for Refurbishment Order in Purchasing Outbound Delivery for Subcontracting with Refurbishment Order Goods Receipt for Subcontracting Purchase Order Transfer of Subcontracted Parts to Workshop Confirmation of Refurbishment Order (Goods Receipt)

Prerequisites
You have activated the business function Refurbishment and Subcontracting (LOG_EAM_ROTSUB),Refurbishment and Subcontracting 2 (LOG_EAM_ROTSUB_2) and Serial Numbers in Purchasing (LOG_MM_SERNO)

Features
The following scenarios are supported for the subcontracting process with refurbishment order: Goods movement types The subcontracting process is supported for refurbishment orders that use transfer postings (313/315) as well as classic goods receipt and goods issue component movement types (101/261). For more information, see Additional Movement Types. Beside the companys own stock (normal stock), subcontracting from refurbishment orders is also available for the following stock types: Project stock (Q) Company own stock or customer stock linked to a project Orders on hand (E) Material related to a specific customer order It is possible to trigger the subcontracting process from any given operation of the refurbishment order, including the first operation. Converting planned orders to refurbishment orders During the conversion, you can select serial numbers and transfer them to the refurbishment order. The integrated solution supports all standard goods movement transactions including MIGO, MB11, and ADSUBCON

Note
In the subcontracting monitor (ADSUBCON), you can only make goods movements for external operations where the basis is the purchase order. In a refurbishment scenario, the basis is always the refurbishment order (though for external operations the refurbishment order can generate purchase orders as well). Refurbishment order type SM03 is used within the subcontracting process for return material authorization orders.

Caution
Forward exchange is not supported It is not possible to allow more than one planned modification of the material number within one refurbishment order The following special stocks are not supported: Consignment vendor (K) Material that belongs to a vendor Returnable transportation package vendor (M) Material that has been loaned from a vendor Customer stock (B) Material that belongs to a customer A combination of one planned modification with an unplanned material number change is generally possible, but only for exchanges and replacements and not unplanned modifications. As soon as it is planned to do the upgrade internally it is not allowed that the subcontractor makes an unplanned modification (same equipment). Instead, the subcontractor can send an exchange (same material number, different serial number) or a replacement (material number, different serial number). For refurbishment orders with subcontracting operations not in DIMP, you cannot have unplanned modifications for operations that use MPN interchangeability.

MRO Subcontracting in Purchasing


Use
Purchase requisitions and purchase orders have been enhanced to cover Subcontracting for MRO Processes. The enhancements cover the addition of data specific to Subcontracting for MRO Processes, such as the subcontracting type, special stock, and serial numbers in the purchase order.

Features
Subcontracting types indicating the different subcontracting scenarios If you use maintenance orders, the subcontracting type is dependent on the material provision indicator (MPI) in the maintenance order. If you do not use

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maintenance orders, you enter the subcontracting type in the purchase requisition or purchase order. The purchase order determines the value of the subcontracting type from the referenced purchase requisition. The MPI that determines the value of the subcontracting type can be set only to Rework Material to Subcontractor, Rework Material from Subcontractor. In the case of forward exchange, the Deferred Delivery MPI is adopted automatically in the purchase order or purchase requisition. This is done when the purchase requisition is created from the maintenance order, or when forward exchange is carried out for the purchase order in the subcontracting monitor. For more information, see Material Provision Indicator. Serial number management in the subcontract purchase order and subcontract purchase requisition. Subcontracting for special stock During goods movements, the Subcontracting for Special Stock field indicates which special stock is used in the subcontracting process. Additional information for the purchase requisition. If the purchase requisition is created from the PM/CS order, you can add further information to the item text in the purchase requisition by using business add-in (BAdI) BADI_DIAD_SUBCON_1. The BAdI allows you to copy your own specific data to the purchase requisition text. The BAdI is called when the purchase requisition is generated from a maintenance order.

1.3.1 Subcontract Purchase Requisitions and Purchase Orders


When you save or release a maintenance order, the system automatically creates a subcontract purchase requisition. The purchase requisition is later transferred into a purchase order. If you do not want to automatically create a subcontract purchase requisition, you can set the Never indicator in the Res./Purc.Req. (reservation relevance/generation of purchase requisition) field on the operation level of the PM/CS order. If you make changes to the maintenance order at component level after creation of the purchase requisition, the changes are reflected in that purchase requisition. However, if the purchase order has already been created, these changes are not reflected in the purchase order.

Recommendation
We recommend you make changes to the maintenance order before creation of the purchase order. There is a workflow available to inform the purchasing department in case changes are done after purchase order creation (TS20000650). You can also: Manually create a subcontract purchase requisition or a subcontract purchase order. You can order the subcontract rework part in a purchase requisition or purchase order by entering or displaying the following data: Subcontracting type Special stock and its related fields Serial number The fields for entering subcontracting type and special stock data are found on the Subcontracting tab page of the purchase requisition or purchase order. The fields for entering/displaying serial numbers are found as follows: In the purchase requisition, on the Material Data tab page In the purchase order, on the Delivery Schedule tab page You can create a subcontract purchase requisition either directly from the stock/requirements list in MRP or by converting a planned order into a subcontract purchase requisition. This enables an unserviceable part available in stock to be repaired by an external subcontractor. This enables an unserviceable part available in stock to be repaired by an external subcontractor. For more information, see Converting Planned Orders to Subcontracting Purchase Requisitions and Creation of Subcontracting Purchase Requisitions from MRP. Each purchase order and purchase requisition item has one component specifying the rework part delivered to the subcontractor. This component has the material provision indicator (MPI) set to Rework Material to Subcontractor. You can also enter other components for each purchase order/purchase requisition item. These contain consumables that the service provider issues to the subcontractor for use during rework. To post a goods receipt to a purchase order, you can use: Subcontracting Monitor (transaction code ADSUBCON) Goods receipt for purchase order (transaction code MB01) Goods movement transaction (MIGO) If you provide consumables to the subcontractor before the transfer posting of the main item, you must post the transfer posting of the consumables to the subcontractor with reference to a purchase order item.

Caution
You cannot create subcontract purchase orders for scheduling agreements. You can use only one schedule line in a purchase order. Multiple schedule lines are not possible in the purchase order. The subcontract purchase order does not support drop ship from vendor to vendor. You cannot post goods receipt to a purchase order using inbound delivery. You cannot use the stock/requirements list in MRP to create a subcontract purchase order. The specific fields for Subcontracting for MRO Processes in the purchase order item can be handled using the relevant BAPIs BAPI_PO_CREATE1 and BAPI_PO_CHANGE. To do this, you can use the interface parameter EXTENSIONIN. If you want to pass one or all of the fields for Subcontracting for MRO Processes, for those fields that you want to pass through EXTENSIONIN, you have to set the following:

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STRUCTURE SERRU SERNO SERNP DISUB_SOBKZ DISUB_PSPNR DISUB_KUNNR DISUB_VBELN DISUB_POSNR DISUB_OWNER

VALUEPART 1 <Subcontracting type> <Serial number <Serial number profile> <Special stock indicator> <WBS element> <Customer number> <Sales document number> <Sales document item number> <Owner of stock>

VALUEPART 2 <PO item number> <PO item number> <PO item number> <PO item number> <PO item number> <PO item number> <PO item number> <PO item number> <PO item number>

VALUEPART 3 -

VALUEPART 4 -

Note
You have to specify only those fields that you want to pass through the BAPI.

Activities
Purchase Order In the Component Overview, you assign material provision indicator (MPI) Rework Material to Subcontractor to the rework material to differentiate between the rework material and the other provided components (consumables); the provided components do not have an indicator. You can: Enter or change the individual component items for the purchase order item manually Generate the individual component items using a bill of material (BOM) explosion if you have stored a BOM for the material in the purchase order item. During the BOM explosion, all relevant data such as the MPI is copied from the appropriate BOM to the component level of the purchase order. For this reason, you must ensure that the relevant BOM contains all required settings. The BOM explosion is performed once only for a component in the purchase order item with a BOM. Changes in the component overview are not checked against those in the BOM.

Caution
Since handling of special stock in Subcontracting for MRO Processes is supported only in the Enjoy transactions for creating, changing, and displaying purchase orders, we strongly recommend you use these transactions (ME21N, ME22N, ME23N) instead of the standard transactions.

Converting Planned Orders to Subcontracting Purchase Requisitions


Use
Parts can be repaired or refurbished in an inhouse workshop or by a subcontractor. If the part is relevant for material requirements planning (MRP), the MRP run suggests a planned order for the required quantity. The planner then converts these planned orders into subcontracting purchase requisitions to trigger procurement processes and have an unserviceable part available in stock repaired by an external subcontractor. During the conversion, information required for subsequent processes is also transferred. During conversion of the planned order you can do the following:
View a stock overview and select any unserviceable stock that is to be provided to the subcontractor. You can then transfer the details for the selected stock to the repairable part of the component. The transfer of stock information (plant, storage location, batch/valuation type) to the component to be refurbished takes place if the stock information is valid for the component material and special stock type. If parts are serialized, you can select serial numbers that are unserviceable. The details of the serial numbers are copied to the subcontracting purchase requisition. Select the subcontracting type manually based on the material number of the part for which the purchase requisition is created and the material number of the unserviceable part that is to be provided to the subcontractor. The user must manually define the MPI for the components. If there is a bill of materials (BOM) for the material for which the purchase requisition is created, the system proposes the subcontracting type.

A purchase requisition can also be created directly from the MRP run with the subcontracting type as default if there is a BOM for the material for which the purchase requisition is created. For more information, see Creation of Subcontracting Purchase Requisitions from MRP.

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Prerequisites
The purchase requisition must have an item category that defines that it is relevant for subcontracted repair, for example L. The purchase requisition must have one of the following subcontracting types:

1 (refurbishment with unchanged material number) 2 (refurbishment with changed material number)
For the serial number check, the material must be a serialized material, or else the Serial Number button is not displayed and serial numbers cannot be assigned. You must implement BAdI BADI_ROTSUB_STOCK so that the Stock button is visible and you can transfer stock information..

Procedure
1. Choose Logistics Materials Management Material Requirements Planning (MRP) MRP Evaluations Stock/Requirements List or MRP List. Depending on your choice, the Stock/Requirements List: Initial Screen or the MRP List: Initial Screen appears. 2. On the Individual access tab page, enter the material for which you want to convert the planned order into the subcontracting purchase requisition. 3. Choose Enter. Depending on your choice the stock/requirements list or the MRP list appears. 4. Choose next to the planned order that you want to convert into a subcontracting purchase requisition. The Additional Data for MRP Element dialog box appears. 5. Choose Pur.Req.
The Convert Planned Order into Purchase Requisition screen appears.

6. To define the purchase requisition as subcontracting-relevant and ensure the Stock and SerNo. buttons are displayed, you must enter the Item Category field with a subcontracting-relevant item category, for example, L. You can select the subcontracting type manually based on the material number of the part for which the purchase requisition is created and the material number of the unserviceable part that is to be provided to the subcontractor. 7. If there is a bill of materials for the part, it is read and the components are transferred to the planned order. 8. You can enter components by choosing Enter Components, the components screen is called and the components has a subcontracting-relevant item category. The special stock is entered for the rework component and a rework component must be created, if no component exists. 9. To select stock information, choose Stock. The Stock Overview: Basic Screen appears. Under Stock Overview, the system displays the available stock information. You can select the stock information you want to transfer to the purchase requisition and choose F3 or Back. 10. If you want to assign serial numbers to the material, choose SerNo. The Maintain Serial Numbers popup appears. You can select serial numbers without having maintained a batch or valuation type, but if there is a batch/valuation type maintained they should match the master data. 11. Save the information to finish the conversion of the planned order to the subcontracting purchase requisition. The system returns to the stock/requirements list or MRP list.

Result
You have converted a planned order into a subcontracting purchase requisition..

1.3.1.2 Creation of Subcontracting Purchase Requisitions from MRP


The planner can configure the MRP process so that subcontracting purchase requisitions are created directly, without firstly converting a planned order. Typically this is used by organizations that have no internal maintenance capacity, or for parts whose repair requires complex equipment and processes. To directly create a subcontracting purchase requisition, the material must have a bill of materials (BOM) that has a BOM item that is designated as a repairable component (material provision indicator (MPI) S). If this BOM item has a part that is the same as the part that needs repair, a purchase requisition is created with subcontracting type 1. If the part to be repaired is, for example, getting phased out, the material in the BOM and the material returned will have different material numbers, so a purchase requisition is created with subcontracting type 2. The planner can go to the purchase requisition and adopt the details as required.

Prerequisites
In addition to the configuration settings made in Converting Planned Orders to Subcontracting Purchase Requisitions, you must check the following: The material for which you want to create a subcontracting purchase requisition must have a BOM. The MPI for the BOM part must be set to S The part must be MRP-relevant with the special procurement indicator in the MRP 2 view of the material master set to Subcontracting.

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More Information
For more information on making the required MRP settings, see Procurement Type and Special Procurement Type.

Serial Number Management in Subcontract Purchase Orders and Purchase Requisitions


Use
You can enter serial numbers for components (if subcontracting type 1 and 2) for subcontracting purchase orders and purchase requisitions (purchasing documents). Serial number management for purchase orders and purchase requisitions is based on the existing serial number management functions. For more information, see the SAP Library, under Logistics LO Logistics - General Logistics Basic Data (LO-MD) Serial Number Management (LO-MD-SN).

Prerequisites
In the General Plant Data/Storage 2 view of the material master, you must have assigned the serial number profile to the material. You have created a serial number profile and assigned the following procedures to it:

For purchase orders, procedure POSL For purchase requisitions, procedure PRSL
If you are using the pre-Enjoy purchasing transactions, you do this in Customizing for Serial Number Management under Plant Maintenance and Customer Service Master Data in Plant Maintenance and Customer Service Technical Objects Serial Number Management Define Serial Number Profiles. If you are using the Enjoy purchasing transactions, you do this in Customizing for Materials Management Purchasing Purchasing Documents Purchase Order or Purchase Requisition Define Document Types.

If you make settings using the Enjoy purchasing transactions, they override any settings made for a particular serial number profile in the pre-Enjoy transactions.
For the Enjoy transactions you must additionally have:

Selected a document type (for example, a standard purchase order) with an item category used for subcontracting. Set the serial number usage for the serial number profile in the Maintenance View Serial Numbers in Purchasing Documents.

Features
In the purchase order, you maintain serial numbers on the Delivery Schedule tab page.In the purchase requisition, you maintain serial numbers on the Material Data tab page. For both, you choose Assign Serial Numbers. For batch-managed materials, you cannot maintain serial numbers without maintaining the batch at component level. For a recursive repair, where the same physical part is returned by the subcontractor with unchanged material and serial numbers (subcontracting type = Refurbishment with Unchanged Material Number), the serial number linked to the purchase order item is the same for the part provided to the subcontractor (component) and for the receiving part (item). An unplanned serial number change is possible during goods receipt if the subcontractor returns a completely different part. For a planned modification, where the same physical part is returned by the subcontractor with a changed material number (subcontracting type = Refurbishment with Changed Material Number), the serial number linked to the purchasing document item is the same for the part provided to the subcontractor (component) and for the receiving part (item). An unplanned serial number change is possible during goods receipt if the subcontractor returns a completely different part. If you have already entered the serial number in a PM/CS order, the serial numbers are copied to the purchase requisition from the object list of the PM/CS order. You can also enter the serial number manually. If you make a change to the PM/CS order and the object list differs from the purchase requisition object list, the system displays a pop up and you can decide if you want the updated serial numbers to be taken over to the purchase requisition. For more information, see MRO Subcontracting in Outbound

Deliveries.

The actual status of the serial number regulates usability of specific serial numbers in purchasing documents. The serial number can be assigned to the purchasing document item if the following conditions are fulfilled:

Purchasing document is not blocked, deleted, or canceled (EKPO-LOEKZ) Purchase order contains only one schedule line Delivery completed indicator is not set Purchase order item has item category Subcontracting (EKPO-PSTYP = 3).
Only the first schedule line is considered for serial number assignment. The system copies the serial number from the purchase order item to the delivery item for outbound deliveries, or into material documents which are posted with reference to a purchase order. The number of the serial numbers assigned to the purchasing document item equals the quantity of the purchasing document item. The serial number in the purchasing document item belongs only to the main part to be repaired, that is the part with material provision indicator (MPI) Rework Material to Subcontractor. If the provided components (consumables) are also serialized, you can enter these serial numbers in the follow-on processes for creating the outbound delivery or posting the transfer posting to the subcontractor.

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You can mark a component with this MPI only in the case of a recursive repair, that is subcontracting types Refurbishment with Unchanged Material Number or Refurbishment with Changed Material Number.
During conversion of a planned order into a purchase requisition, it is possible to transfer serial numbers. Once you have entered serial numbers for a purchasing document item, you cannot change:

Item category Subcontracting type Main rework part on component level


If you want to make changes to the subcontract purchasing document for a serialized component, you have to delete the serial number assignment and change the purchasing document items. If you change the purchasing document quantity, you might have to enter additional serial numbers (increase in purchasing document quantity) or delete existing serial numbers (decrease in purchasing document quantity). You cannot carry out a new BOM explosion if you have already assigned serial numbers to the main rework material.

1.3.3 Special Stock for Subcontracting for MRO Processes


You use subcontracting special stock for unvalued stock.

Features
Purchase Requisitions and Purchase Orders The standard functions have been enhanced for subcontracting to indicate the type of special stock, identify the special stock, and set a special stock indicator for linked components. Stock Overview The standard Stock Overview function has been enhanced to cover special stock for Subcontracting for MROProcesses. You can view the stock situation at the subcontractor of the special stock for subcontracting. Material Requirements Planning (MRP) Elements In MRP, the following MRP elements have been added for Subcontracting for MRO Processes: Name Description ScCOst ScPrST Sales order stock with subcontractor Project stock with subcontractor

Batch Information Cockpit The Batch Information Cockpit (BIC) supports special stock for Subcontracting for MRO Processes. : Goods Movements During goods movement, the quantities of the components to be provided to the vendor from the special stock are entered into the different unvalued subcontracting stock. This stock has the following features Managed as unvalued special stock and is available for MRP Can be used for: Project stock (Q) Sales order stock (E) Vendor consignment stock (K) Returnable packaging stock from vendor (M) Is either: Unrestricted-use stock Quality inspection (QI) stock

Note
Note that before transferring QI stock to the subcontractor, it must be posted into unrestricted stock. Parts returned from the vendor can be received in QI or unrestricted stock. Stock can be transferred between the two stock types. Withdrawals can be posted only from unrestricted-use stock. For more information about goods movements and special stock in goods movements, see MRO Subcontracting in Goods Movements.

Archiving

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You can archive the following special stock types using archiving object MM_SPSTOCK: Special Stock Description Detail Table F I/J R Sales order subcontractor stock Consignment and returnable packaging subcontractor stock Project subcontractor stock MSFD MSID MSRD

Summary Table MSFS MSIS MSRS

Before a special stock record can be archived and deleted, other objects that refer to this special stock must themselves be archived.

1.3.3.1 Special Stock in Subcontract Purchase Requisitions and Purchase Orders


You use special stock in subcontract purchase requisitions and subcontract purchase orders.

Features
Special stock fields can be assigned to the purchase order item if the purchase order item has item category Subcontracting (EKPOPSTYP = 3). Special stock at the subcontractor is managed only at plant level, since the stock is not stored within the company but on the vendors site. In the purchase requisition item and the purchase order item, the Subcontracting for Special Stock field indicates during goods movement which special stock is used in the subcontracting process. The possible values of the field are: Value in PReq/ PO item Stock at Subcontractor Description Initial Q E K M O R F J I Subcontracting for unrestricted stock Subcontracting for project stock Subcontracting for sales order stock Subcontracting for vendor consignment stock Subcontracting for returnable transport packaging (RTP) stock from vendor

Information concerning the identification of the individual special stock (such as the project number for project stock, or the sales order number for sales order stock) is kept on item level. If you enter a value in the Subcontracting for Special Stock field, you also have to enter the identification information (such as project number, sales order number or vendor number). You can enter the special stock identification (such as project number, sales order number) and the special stock itself on the Subcontracting tab page. You can also identify special stock in the maintenance order. All special stock at subcontractor except project stock and sales order stock, is non-valuated. The special stock on the plant side therefore also has to be non-valuated for consistency. If you enter a value in Subcontracting for Special Stock for non-valuated special stock, the system sets the goods receipt non-valuated indicator in the purchase order item on the Delivery tab page. Project stock and sales order stock can be valuated as part of the subcontracting process. In this case, for valuated project stock and for valuated sales order stock, the goods receipt non/valuated indicator remains unchecked. For each new special stock, there are database tables used for storing: Special stock data at plant level (summary table) Special stock data at batch level (detail table Historical data (history table) The database tables are as follows: Special Stock Summary Table Detail Table History Table Project stock Sales order stock Vendor consignment stock Returnable transport packaging stock MSRS MSFS MSIS MSIS MSRD MSFD MSID MSID MSRDH MSFDH MSIDH MSIDH

You cannot have a special stock assignment in the Subcontracting tab page for purchase order items without an account assignment. The synchronization of value from the purchase order item account assignment field to the Subcontracting tab page is carried out for sales order stock and project stock You can make an account assignment between a purchase order item and a maintenance order with any type of special stock in the Subcontracting tab page.

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MRO Subcontracting in Outbound Deliveries


Use
You can create an outbound delivery for issuing components to the subcontractor. You have to create the outbound delivery in the Subcontracting Monitor. All items from the component level of the purchase order item are taken into the outbound delivery. You can transfer the main component and the consumables to the subcontractor with one or more outbound deliveries. Each outbound delivery has one transfer posting.

Features
When you create an outbound delivery for a purchase order in the Subcontracting Monitor using the Delivery for PO function, the Create Delivery popup appears and you can maintain the following data:

Serial numbers - the system only proposes serial numbers that you have not already used. If the main component of the purchase order item (part to be repaired) is serialized and the serial number has been assigned to the purchase order item, during the delivery creation the system automatically picks the serial number from the purchase order item and assigns it to the appropriate delivery item. The storage location must be the same for the purchase order item and the serial number. If at some point the storage location was changed for the purchase order item, the serial number which still has the old number will not be proposed. If the part is managed with batches or has a split valuation, the batch or valuation type on the delivery item proposed from the purchase order components must be the same as the batch or valuation type of the serial number. During delivery creation in the subcontracting monitor, the system proposes the batch or valuation type from the purchase order component data. You have to check this proposal to ensure that it meets your requirements. Quantities only remaining quantities are proposed. You can make changes to these quantities in the case of: Unplanned additional delivery of consumables The purchase order for external repair is created with the component to be repaired and additional consumables. The outbound delivery is created and goods are supplied to the subcontractor. During the repair process, the subcontractor requires additional consumables and informs the MRO provider, who decides to send the required additional components to the subcontractor by adding additional consumables to the component list of the purchase order. The outbound delivery for the additional components must be created now and the components must be supplied to the subcontractor. Planned pre-delivery of consumables The MRO provider has an agreement with the subcontractor to send consumable parts before the components to be repaired. The components of the purchase order contain both materials, but it is planned to have two outbound deliveries, the first one with the consumable material, the second one with the material to be repaired. Unplanned multiple delivery of partial quantities The purchase order for external repair is created with a quantity greater than one for the main component and/or consumables. The MRO provider can send only a partial quantity of these components to the subcontractor. This partial delivery was not planned. The MRO provider creates an outbound delivery for the partial quantity and sends it to the subcontractor. When the remaining parts are available to send to the subcontractor, the MRO provider must create an additional outbound delivery for these components, and send these components for repair. Storage location Batch (if batch-managed) Valuation type
The popup also has a status column to inform you if there is any missing relevant information.

Prerequisites
In Customizing, you create the outbound delivery with type LB Subcontracting or your own equivalent and you reference the subcontract purchase order. In Customizing, you create the delivery items with item category LBN Material provided item or your own equivalent.

Activities
In the subcontracting monitor (ADSUBCON):
When there are serial numbers assigned to purchase order items, the system retrieves the serial number information from the purchase order. In a column in the Create Delivery popup, you see the status of serial number assignment. You choose the Maintain serial number icon to see a list of available serial numbers. You can then delete any unwanted serial numbers from the list. If the quantities in the delivery match the number of serial numbers you can create a delivery and the status is green. If there are more serialization numbers than the quantity in the purchase order, for example, because you have reduced the quantity, the status is red and the Create Delivery button is grayed out. To assign serial numbers of consumables to the delivery document you can:

Enter the serial numbers in the delivery document. Choose the Maintain Serial Numbers button on the Create Delivery popup and enter the serial numbers.
During delivery creation in the subcontracting monitor, the system proposes the batch or valuation type from the serial number stock data. You have to check this proposal to ensure that it meets your requirements. When creating the outbound delivery in the subcontracting monitor, you cannot use batch split. To change the batch in the delivery item you must:

Delete the serial number from the delivery item Change the batch or valuation type Reassign the serial number
After the outbound delivery has been created, the system updates the purchase order history with the delivery number. In the outbound delivery (transaction code VL02N), you pick the goods and post the transfer posting via the outbound delivery. You cannot post the transfer

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posting in the subcontracting monitor. From the subcontracting monitor, you can access the delivery in change mode. This allows you to post the goods issue.

MRO Subcontracting in Goods Movements


Use
You use a transfer posting to the subcontractor and post goods receipt from the subcontractor with reference to the subcontract purchase order. The system derives from the purchase order which special stock is affected. You can trigger the goods movement to the subcontractor stock of the main part to be repaired together with any consumables in the following ways:

From the outbound delivery In the subcontracting monitor By using the Transfer Posting function (transaction code MB1B) with reference to the subcontract purchase order Using the Transfer Posting for Purchase Order function (transaction code MIGO )
You receive the repaired parts back into the warehouse. You can trigger the goods receipt for the repaired part in the following ways:

In the subcontracting monitor Using the Goods Receipt for Purchase Order function (transaction code MB01) Using the Goods Receipt for Purchase Order functions (transaction code MIGO )
If you use vendor consignment stock (K - J) or returnable transport packaging stock (M I) in the process, the system displays the Owner field, which is used during the goods movements. You have to post the main part and all consumables provided to the subcontractor from one special stock type. The repaired part is returned to the same special stock type. You cannot use different special stock types for the main component and the consumables. Prior to the outbound delivery or transfer posting, you can post the main component and all consumables to the same special stock. During goods movements (transfer posting to subcontractor and goods issue from subcontractor stock), MIGO proposes serial numbers if they are linked to the purchase order item. For more information, see Serial Number Management in Subcontract Purchase

Orders and Purchase

Requisitions.
You can subsequently adjust subcontractor stock using the subcontracting subsequent adjustment function in transactions MB04 or MIGO . You can copy the valid movement types provided with the standard system into your own movement types for use in Subcontracting for MRO processes. To do this, you use Business Add-In BADI_ADSUB_MVT_TYPES.

1.5.1 Provision of Parts to Subcontractor


You trigger the goods movement to the subcontractor stock of the main component to be repaired (together with possible consumables) in the following ways: From the outbound delivery In the Subcontracting Monitor Using the standard Transfer Posting function (transaction code MB1B) with reference to the subcontract purchase order Using the Transfer Posting Purchase Order function (transaction code MIGO) to post the goods movement Before posting the transfer posting, the part with the appropriate serial number, batch, and valuation type is available on the storage location from which the goods are going to be sent out. If this is not the case, you have to carry out a prerequisite posting to update the stock with the required part. If the reference purchase order item contains a serial number, the system proposes the serial number during the goods movement and copies it into the material document for the part to be repaired. If the serial number is not maintained in the purchase order item, you have to maintain it during the transfer posting. You enter the serial numbers of the consumable components manually during the goods movement. For transfer postings to subcontractor carried out using transaction MIGO (movement type 541 in standard), MIGO proposes serial numbers from the purchase order item if it concerns a recursive repair (the same physical part is received back from subcontractor) (subcontracting type 1 - Refurbishment with unchanged material number or 2 - Refurbishment with changed material number). You can post partial goods receipts. Using MB1B or MIGO, you can do multiple postings for partial quantities with reference to the purchase order. From ADSUBCON only one posting is allowed. Parts that are provided to the subcontractor are managed as unvalued stock provided to vendor when you enter the Subcontracting for Special Stock field in the corresponding purchase order item and set the special stock indicator in the component data.

Note
This does not apply to the special stock types project stock or sales order stock at subcontractor. These special stock types are valuated In Inventory Management, the provision represents a transfer posting from special stock (the special stock type depends on the value in the field) to the subcontracting stock (for project stock, customer stock, sales order stock, vendor consignment stock, or returnable transport packaging stock).

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You can use several partial deliveries to provide the parts and consumables to the subcontractor.

Receipt of Repaired Parts from the Subcontractor (Goods Receipt)


Use
You receive the materials back into the warehouse. You trigger the goods receipt for the repaired part in the following ways:
In the subcontracting monitor Using the standard function for Goods Receipt for Purchase Order (transaction code MB01) Using the Goods Receipt for Purchase Order functions (transaction code MIGO )

You cannot post a goods receipt using an inbound delivery (transaction code VL32). During the goods receipt with reference to a purchase order, the system derives the special stock type for which the goods receipt is posted from the Subcontracting for Special Stock field in the purchase order item. At goods receipt, a consumption posting for the components is also made from the unvalued subcontracting stock. For each goods receipt item, the system copies the components with their quantities as transfer posting items. The goods receipt posting consists of the following:
Goods receipt to update the plant stock of the received part (movement type 101 is provided for this.) Goods issue from subcontractor stock issues the provided components, including the main part from the subcontractor stock (movement type 543 is provided for this.) If the goods receipt is posted with reference to the purchase order item, which is account assigned to the PM/CS order (account assignment F in the standard system) and does not have special stock, then an additional posting is necessary to update the physical stock. This additional posting is necessary because, in such a scenario, the goods receipt posting (movement type 101) does not update the stock; it is a consumption posting. The additional posting is performed using business add-in (BAdI) BADI_DIAD_GOODMVT_1, for which a default implementation is provided. The default implementation proposes movement type 262 for posting the goods back to stock. You can change the movement type and other logic for additional postings by creating your own BAdI implementation. In the default implementation, all necessary data for the additional posting using movement type 262 (plant, storage location, material, quantity, and so on) is taken from the 101 part of the goods receipt. During this posting, the system carries out additional checks of movement type 262, for example, settings for automatic creation of storage location. If the checks fail, an error message occurs and the posting does not take place. The additional posting using movement type 262 is carried out after movement types 101 and 543 have been committed. Therefore, in this scenario, the system creates two material documents:

One material document for the 101 and 543 postings. One material document for the 262 goods receipt.

The Customizing setting for automatic creation of storage locations for the movement types used in an implementation of the Business Add-In should match those for standard movement type 101. At the time of the goods receipt, what has been originally sent to the subcontractor is unknown, that is the materials, serial numbers (if contained in the purchase order item), batches, valuation types, and quantities that should be consumed at the subcontractor stock. The system finds and proposes this information during goods receipt, depending on the subcontracting scenario. The following occurs:
The system proposes the serial number from the purchase order item for a recursive repair, in which you send and receive the same serial number.

The S/N Equal (Serial Number Equal) indicator must be set for a recursive repair, and you can deactivate this indicator if the serial number changes. In MB01, you set the indicator on the Maintain Serial Numbers dialog box, in MIGO on the Serial Numbers tab page.
For an unplanned serial number change, the system proposes the serial number from the purchase order item in movement type 101 or your copy thereof, but does not propose a serial number for movement type 543 (or your copy thereof). You can enter the serial number manually or retrieve the serial number sent to the subcontractor from the reference document on the serial number popup.

During posting of goods receipt of the subcontract purchase order item with special stock, no accounting documents are created if the special stock type is non-valuated.

1.5.3 Cancellation of Goods Movements


Use
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You can cancel goods movements by using the reversal movement types 542, 102 and 544 in the following ways:
In the standard functions Cancel Material Document (transaction code MBST) In the Goods Receipt for Purchase Order (transaction code MB01) In Transfer Posting (transaction code MB1B ). If material documents have been created from a delivery note, you have to use the Reverse Goods Movement function (transaction code VL09) In transaction MIGO in the following ways:

Using the Cancellation Material Document function (transaction code MIGO ) Reversing the goods movement, for example, goods receipt for purchase order with movement types 102 and 544. The serial numbers are proposed from the purchase order except those that are no longer available. You can also perform reversal for just part of a received quantity. In this case the available serial numbers are also taken from the appropriate purchase order item. The Cancel Material Document function in transactions MBST and MIGO cancels the material document as-is with all assigned serial numbers, quantities, batches, and so on. The stock situation for a successful cancellation has to be the same as after the original goods movement. In a scenario with account assignment to the maintenance order and without special stock, because there is an additional posting and the additional material document is created for this posting, you must cancel the goods receipt using Cancel Material Document in two steps: 1. Cancel the material document posted by movement type 262 or your equivalent. 2. Cancel the material document posted by movement types 101 and 543 or your equivalents. The sequence of the cancellations is important and should be carried out exactly as mentioned here. You can find the additional material document number from the serial number history or by using the Material Document List (transaction code MB51).

1.5.4 Subsequent Adjustments


Once the subcontractor has delivered the repaired part, you post the goods receipt to the subcontract order. The system determines the necessary components for each purchase order item and creates a goods issue item for each component with the quantity that was determined in the purchase order. If the subcontractor informs you after these postings that a greater or smaller quantity of the consumables were consumed than planned in the purchase order, you must post a subsequent adjustment to correct the consumption of consumables. For more information, see Posting a Subsequent Adjustment. Special Stock . You can subsequently adjust the special stock in Subcontracting for MRO processes using the Subcontracting Subsequent Adjustment function for the following special stock types: F - Customer order stock I - Returnable transport packaging J - Vendor consignment R - Project stock Process Flow ...

Process
1.

2.

3.

4.

5.

Service provider receives a consumption notification from the subcontractor. This notification contains the following information: 1. Purchase order number 2. List of main items with either the total component consumption or the consumption difference for each component. Service provider calls transaction MIGO, selects the business operation Subsequent Adjustment from the list box. The system automatically chooses Purchase Order as the reference document. Then the user enters the purchase order number as referred to in the subcontractors notification. The list of main items is displayed. Service provider expands the main items for which he wants to change the component consumption. The list of components for the expanded item is displayed in the table control (hierarchy). The issued quantity already posted during goods receipt is displayed for each component. Service provider enters the difference quantity in the quantity field and selects the kind of difference with a check box: 1. Blank = Excess consumption (Blank is the default value). 2. X = Under consumption Service provider posts the subsequent adjustment.

Result
The specified quantities of the originally posted goods receipt are corrected by the subsequently adjusted quantities. The quantities are increased or decreased according to the subsequent adjustment but not replaced by these values.

1.6 Subcontracting Monitor


The subcontracting monitor provides a comprehensive overview of all relevant information for parts used within the subcontracting

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process: Purchase requisitions, purchase orders, deliveries, and material documents are displayed in a tree structure by plant, vendor, and material Stock overview for the selected materials is displayed Key data is displayed for each document. To get additional information, you can access the standard transactions for maintaining or viewing the document either directly from the subcontracting monitor, or from the standard SAP Easy Access screen or transaction codes.

Features
The subcontracting monitor enables you to: Create a purchase order from a purchase requisition Create an outbound delivery for a purchase order Post a transfer posting for a purchase order Post a goods receipt for a purchase order Access the standard transactions to display or edit documents from the subcontracting monitor tree Refresh the subcontracting monitor Trigger a new selection Trigger forward exchange

Activities
To access the subcontracting monitor, choose Logistics Subcontracting Monitor (transaction code ADSUBCON). Plant Maintenance Maintenance Processing Rotables Management

1.7 Material Provision Indicator


Use
You use the material provision indicator (MPI) to identify the subcontracting type of a part. The following indicators are provided:
Rework Material to Subcontractor (value S in the SAP standard system) Rework Material from Subcontractor (value X in the SAP standard system) Deferred Delivery (value F in the SAP standard system) If the field is blank, the components are provided to the subcontractor as consumables (Initial in the SAP standard system)

Apart from the values Rework Material to Subcontractor and Rework Material from Subcontractor, you cannot use any other MPI provided on component level of the maintenance order.

Integration
The material provision indicator is used in:
Bills of material (BOMs) Task lists PM/CS orders Purchase requisitions (Rework Material to Subcontractor only ) Purchase orders (Rework Material to Subcontractor only )

Example
For a subcontracting process triggered from a PM/CS order, the following scenarios are possible:
Recursive repair: You send a part to the subcontractor, who returns it with the same material number:

You create the main part with MPI Rework Material to Subcontractor, possibly with consumables. You do not have to create the returned part with MPI Rework Material from Subcontractor.
Planned material change (modification): You send part A to the subcontractor, who returns part B. You have to create two parts in the system:

Part A with MPI Rework Material to Subcontractor Part B with MPI Rework Material from Subcontractor
If necessary, you have to create the parts with consumables. The requirement quantity of part B should be negative, since it neutralizes the demand that material requirements planning (MRP) creates for this part.

Forward exchange:
You receive a part from the subcontractor in advance, and you send the part to the subcontractor by deferred delivery at a later point in time. The subcontractor keeps this part in his own stock.

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1.8 Subcontracting Types


The system determines the subcontracting type from the settings you select for the material provision indicator (MPI) in the PM/CS order. If you do not use a PM/CS order, you can manually specify the subcontracting type in the purchase requisition or purchase order. You can assign the subcontracting type to the purchase requisition or purchase order item if that item has item category Subcontracting (EKPO-PSTYP = 3). The subcontracting type has the following possible values: Subcontracting Type Description Initial Subcontracting This is reserved for standard subcontracting. For functions such as serial number or special stock, you can use this subcontracting type. Refurbishment with Unchanged Material Number During goods receipt, an unplanned serial number change is possible. Refurbishment with Changed Material Number This is a planned change where the subcontractor is expected to return the same physical part with the same serial number. Physically, the part is the same; however, the material number has changed because the part has been modified during the repair. The serial number can also change during the goods receipt. Replacement This is used in the forward exchange process where a replacement part is received from the subcontractor before the part to be repaired has been sent. The system sets this value automatically; you cannot set it.

From the settings in the PM/CS order, the system can determine only subcontracting types Refurbishment with Unchanged Material Number and Refurbishment with Changed Material Number. The system does this as follows: PM/CS Order Operation Components of PM/CS Order Purchase Requisition or Purchase Order Subcontracting indicator is set Control key is set to External Operation Material A: MPI = Rework Material to Subcontractor The material number on item level equals the material number on component level of the purchase requisition or purchase order, that is A. The system sets subcontracting type Refurbishment with Unchanged Material Number The material number on item level is B. The material number on component level is A. The system sets subcontracting type Refurbishment with Changed Material Number

Subcontracting indicator is set

Control key is set to External Operation Material A: MPI = Rework Material to Subcontractor Material B: MPI = Rework Material from Subcontractor

More Information
MRO Subcontracting in Maintenance Orders MRO Subcontracting in Purchasing

1.9 Subcontracting Scenarios


The following scenarios are possible for returns from the subcontractor: Recursive repair Same part with same material number and same serial number Unit exchange Different part with same material number and different serial number Modification Same part with different material number and same serial number You cannot change the subcontracting type for a purchase order item from Refurbishment with Unchanged Material Number to Refurbishment with Changed Material Number after you have sent the part to the subcontractor.

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In exceptional cases where an unplanned modification is required, we recommend you do the following: Reverse the transfer posting to the vendor using movement type 542 in the Transfer Posting function (transaction code MB1B) or using the Reverse Goods Movement function (transaction code VL09). Deassign the serial number from the delivery. Create a new purchase order item with the following details: Field Account Assignment Category Item Category Material Account Assignment Create a new delivery Post the transfer posting User Entry F L <Number after modification> <Order number>

1.10 RMA Orders in Subcontracting


Use
Return material authorization (RMA) orders are created from repair orders in Sales and Distribution as part of the returns and repairs process. For more information about the standard returns and repairs process, see Returns and Repairs Processing (CS). The standard returns and repairs process has been adapted for subcontracting:

A service order is generated when the service provider has received the return delivery and the goods receipt has been posted. The subcontracting process then takes place as the service provider sends the returned part to the subcontractor for repair.
The following applies only to sales order stock (E ). The system automatically copies the special stock indicator from the PM/CS order to the subcontracting purchase order. This only happens if a task list is assigned to the material or service product (transaction OISD ) that has a subcontracting operation with the component and MPI assigned. The system automatically copies serial numbers from the PM/CS order or the RMA order to the purchase order The system automatically copies the material provision indicator Rework Material to Subcontr. from the PM/CS order to the purchase order.

1.11 Forward Exchange


Use
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 MRO Subcontracting Process with Forward Exchange.

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Prerequisites
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.

Features
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. 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.
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

Constraints
You cannot use forward exchange with refurbishment orders.

Forward Exchange in the MRO Subcontracting Process


Forward exchange is a function within subcontracting for MRO processes. 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. Therefore you have to do the following: 1. In the external procurement details for the operation, set the subcontracting indicator (Subcontr.) on the External tab page. 2. On the Components tab page, 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).

You can also copy components directly from a task list or bill of materials. Forward Exchange in Purchase Requisitions If the system creates a purchase requisition from the maintenance order, the forward exchange information is transferred automatically to the purchase requisition. The main component X becomes the item in the purchase requisition and all other components appear with the material provision indicator F. The subcontracting type (SERRU) in the item is 3 (Replacement) and the item category is L (Subcontracting). 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:
Create a forward exchange purchase order from a purchase requisition created from a maintenance order by choosing 1 Refurbishment with unchanged material number). In the subcontracting monitor, choose Forward Exch. represents forward exchange. with the quick info text Transform purchase order item into forward exchange structure. This Create PO via PR. Perform forward exchange for an existing subcontracting purchase order or a purchase order you have just created for a normal repair (Subcontracting type

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You must check the following prerequisites: There must be no purchase order items already containing forward exchange information. There must be no follow-up documents. 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). You can control if the creation of forward exchange items takes place immediately with a dialog box. This object checks if a user is authorized to convert a purchase order item into forward exchange items.

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.

When the system creates a purchase order with forward exchange information, the subcontracting item is split into several purchase order items. The item from the purchase requisition is deactivated and becomes statistical. The subcontracting type (SERRU) and MPI of the statistical item of the purchase order created during forward exchange remains unchanged. The statistical purchase order items are then visible in the subcontracting monitor in the tree hierarchy on the left with the related subitems underneath. If you scroll to the right within this hierarchy, you can see:
Subitems that are forward exchange-relevant marked with Components flagged for deferred delivery 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. You need one item for each posting (goods issue and goods receipt). Once you have created a forward exchange purchase order, the statistical item is grayed out and the two or more subitems are active. 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.

You must use forward exchange for a complete quantity of a component, you cannot specify a partial quantity. You can change the requirement date. 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. See also: Forward Exchange

Price Determination for Forward Exchange


Purpose
Forward exchange uses standard item categories. To distinguish purchasing new parts in price determination, you must define a separate price determination procedure. For price determination in forward exchange, we recommend you take note of the following scenarios:
Items that are not accounted in the plant maintenance order Items that are accounted in the plant maintenance order

For more information about configuring these scenarios, see SAP Note 964543.

Prerequisites
You must define conditions You must adapt the logic for price determination

For information about these prerequisites, see SAP Note 964543.

Process Flow
For the return items used in forward exchange, the link to the plant maintenance order must be removed in order to get the stock update. Consequently, costs

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cannot be accounted because the price information cannot be transferred to the maintenance order without this link.

Customers using special stock do not need to use this price determination procedure.
To ensure that cost accounting is carried out correctly for the maintenance order, the prices must be determined in the following way:

Price of return item = material price Price of goods receipt item = return items + refurbishment price/forward exchange fee from the subcontracting info record.
If the material prices (in MM03) change after price determination in the purchase order, there is no update of the prices in the purchase order.

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). The main component can have the same or a different material to 013. Item/ Material/Qty Material Price Refurbishment Item Price Return? Account Price Assignment 011 012 013 /F/order 1 B/1 C/1 A/1 60 25 100 32 60 25 117 X X

With each of the following goods movements, values are posted:


Goods movement 101 takes place. Accounting information for item 011 is transferred to the maintenance order. There are no stock changes.

Goods movement: 101 (goods receipt) Stock A = +/-0 Order costs/is debited: 117 (Material prices A (60)+ B (25) + Fee(32))
When the goods receipt arrives, goods movement 262 takes place in the background. 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, so the stock is reduced by 1 piece and the value of stock is reduced by 60.

Goods movement: 161 (goods return) Stock B = -1 Material value B = -60


Material C return item is sent to the subcontractor, so the stock is reduced by 1 piece and the value of stock is reduced by 25.

Goods movement 161 (goods return) Stock C = -1 Material value C = -25


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

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