https://blogs.sap.

com/2014/03/04/the-backflush-logic-basics/

External Operation Processing

1. For a production material (1001), one raw material (2001) is assigned.

2. Production process of 1001 is having four operations 10, 20, 30 and 40.

3. In this 10, 30, and 40 are internal operations and 20 is external operation (sub-
contracting).

4. To address this, we created a dummy material (non-valuated) and named as 1001-

20 (Finished product number + Operation to be performed).

5. This 1001-20 should form part of the component in BOM of 1001. That is BOM of
1001 will have components as raw material 2001 and this dummy material 1001-20.
In routing, assign this dummy material 1001-20 to operation 20.

6. During BOM creation, you should remove costing relevancy for the item 1001-20.

7. In routing, operation 20 is created with a work center (which is external operation

work center) with external operation control key.

8. In operation details, for external processing, assign the info record of external
processing.

9. Info record of external processing has to be created for vendor with relevance to the
operation to be performed externally with vendor. (We are using material group field
in the external processing in routing operation).

10. When create production order with above set up, system will create Purchase Req
for external operation. This has to be converted to purchase order.

11. Now, this dummy material should be kept as 5000 or 6000 in stock using 561.
When Purchase order is raised, required quantity has to be moved to vendor using
541. When we do goods receipt the stock with vendor shall come down. With this, we
can monitor the material (with dummy material number) stock with vendor (please
note we can see only quantity and not value) .

12. When we do GR for external purchase order, we receive only the operation
performed. (So, conversion cost to vendor shall be paid).
13. After ensuring GR is done, order confirmation of operation 0020 has to be done.
(here we capture the quantity and also the valuation of material in production order).

Do not cost materials

Rob has the logic

no PIR or something - Rule missing in the - do not cost material

For By parts

2) Routings - 1000 PIRs

Vendor info missing

PIRs for material groups - external operations for Amory - work around - Put clearly a Dummy vendor
number - costing routing

True purchases -

Routing is loading this week

New rules for price break PIRs - Finance Data Element -

Basic 2 - load

https://websmp207.sap-
ag.de/~sapidp/012002523100005746092015E/Library/ProcessDiagrams/150_ERP605_Process_Overvie
w_EN_XX.pdf

https://blogs.sap.com/2013/11/26/subcontracting-process-in-production/

Subcontracting process in Production

Scenario: In house production material (Header material) is produced with three operations out of which second operation is performed
outside (provided to vendor) due to various reasons like Machine breakdown, capacity problems…..
BOM of the material contains three components. First operation uses first component, Second operation which is performed externally, uses
second component and Third operation uses third component.

Process Flow :
Create BOM for header material as shown below with CS01 with three components as input materials.
Create routing for material with three operations and for second operation assign control key PP02 as shown below with Transaction code
CA01 and no need to maintain the work center….for the second operation

Assign the materials to the respective operations as shown below

For the second operation assign external processing parameters as shown below.

Enter details of Purch. Organization, Purchasing group, Material Group and others as per the requirement.
Create the production order for the header material with CO01 as shown below
Save the Order
Go to the created Production order in change mode and select the second operation and go to operation details as shown below.

Check for the generation of Purchase Requisition in the Ext. Processing Tab.
Now release the Production Order and save the order
Issue the First and Third components to production using transaction code MB1A
Now save and components are posted

Now confirm the first Operation with transaction CO11N after completion of the same as shown below and save
Create Purchase Order with the Purchase requisition generated for the second operation with transaction ME21N
Enter all the required details and save the document. Now the purchase order created

Check whether the second component is attached to this Purchase order or not by clicking on the Components button
Now issue this component to the purchase order with movement type 541 through transaction MB1B as shown below.
Now check the stock of second component appearing as Stock provided to vendor as shown in the below screen shot

Semi-finished product along with second component sent to vendor for executing the second operation. Once the operation completed by the
vendor semi-finished product is sent back to plant for execution of third operation

Now make GR for material with the purchase order with 101 movements and during this GR second component stock is consumed which is
provided to vendor
Now check for the stock of the second component in the stock overview and it is consumed.
No need to confirm the second operation (Now confirm the Second Operation in the Production Order). When you do GR against
subcontract PO, system automatically will change the external operation status as “EODL” External Operation Delivered.

Now confirm the Third Operation in the Production Order after completion of the same…
 Make the goods receipt for the production order through MB31. check the stock in mmbe

Delete Costing Run: CKR1, CK44

Material group :

Material type : HALB

PIR at what level -

CE - relevant for service cost - which GL account

GL account is maintained in cost component

OKK4

ME41

ME47 - change net quotation price

Create PO - ask which GL account is hitting

Services or services master

GL account cost component split

https://www.youtube.com/channel/UCHhVIld8_81ZRWta3K9s-yA
Bhabani Parida FICO classes

https://www.youtube.com/user/348bhabani/videos