Sub-contracting Process

Business Process

 This is Process in which the Company will send some or all of the Components to
Sub-contracting Vendor, he will fulfill the requirement by doing the activities like
Painting/Over hauling/ servicing etc.
 After the work is done by Vendor, the Company will receive the finished goods and
settle the Invoice.

Process
1. Create MMR with Raw Materials (ROH) or Semi-Finished (HALB)
a. Create POfor Stock
b. Create GR for Stock
2. Create MMR with Finished Product (FERT) (Don’t take any stock)
a. Create Sub-Contracting PIR (optional)
b. Create Sub-Contracting PO for Finished Product (Item Cat – L)
3. Transfer the Components to Sub – Contracting Vendor – ME2O
a. Check Stock Overview in MMBE
4. Goods Receipt for Finished Goods –MIGO (101)
5. Invoice Verification – MIRO

1) Create ROH or HALB Material Using MM01

Create PO for HALB for Stock

T Code – ME21N

Path:

SAP Easy Access  SAP Menu  Logistics  Materials Management  Purchasing 

Purchase Order  Create  ME21N Vendor/ Supplying Plant Known
 Enter all the required details like, Vendor, Company Code, Purchase Organisation,
Purchasing Group in header.
 Enter Material, Plant in Item overview.
 No need to enter Item Category here in this PO.

 Check & Save PO.

Create Goods Receipt – 101 K

 Go to T Code – MIGO
o Select Event – A01 Goods Receipt
o Select Reference – R01 Purchasing Document
 Enter PO Number, check and post GR.
  Check Stock in MMBE

2. Create MMR with Finished Product (FERT)

 Create the finished product material, do not maintain Price in Valuation in
Accounting 1.

Create Sub-Contracting PIR for Finished Product(Optional)

Create Sub-Contracting PO for Finished Product (Item Cat – L)

T Code – ME21N

Path:

SAP Easy Access  SAP Menu  Logistics  Materials Management  Purchasing 

Purchase Order  Create  ME21N Vendor/ Supplying Plant Known
  Enter all the required details like, Vendor, Company Code, Purchase Organisation,
Purchasing Group in header.
 Enter Material, Plant in Item overview.
 Enter Item Category L (Sub-Contracting).
 Enter Tax code in Item Details.

 After entering all details we have to enter components which we are producing for
finish product.
 To add components list go to Item Details  Material Data  Click on Components

 Check & save PO

3. Transfer the Components to Sub – Contracting Vendor – ME2O

T Code – ME2O

 Enter Vendor Code, Material Code& click on execute.

 Then system will display below screen.

 Then select the material and click on Post Goods Issue.

 Then enter storage location and click on continue.

 Then system will display success message.

  Then check stock in MMBE, by giving below details.

4. Goods Receipt for Finished Goods – MIGO (101)

 Go to T Code – MIGO
a. Select Event – A01 Goods Receipt
b. Select Reference – R01 Purchasing Document
 Enter Finished Goods PO Number, check and post GR.
  Accounting documents are generated, check in display mode FI Documents.

5. Invoice Verification – MIRO

 Go to T Code – MIRO
 Enter all the required details and save.
 Enter Finished Product PO Number.

 Now go to ME23N and check PO History.

Regards
Vinay Dubey