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What is Subcontracting ?
Raw Materials
My company Subcontractor
Finished Product
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Subcontracting - Business Example
Raw Materials:
1. MOUSE_LENOVO
2. MONITOR_LENOVO
3. KEYBOARD_LENOVO
My company Subcontractor
Finished Product:
LENOVO_LAPTOP
Vendor = Subcontractor
100608 – XYZ Private Limited
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Subcontracting Process flow in SAP
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What is BOM ?
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Bill of Materials - Example
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Subcontracting Process Overview
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Create Subcontracting PO
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Create Subcontracting PO – ME21N
✓ On thing you need to make sure while creating subcontracting PO is that you select item category as L which is
Subcontracting; You also needs to have the Components of the material for what you want to create subcontracting PO.
Note: Components can be exploded through BOM (Tcode: CS01) or components can be given manually also.
Subcontractor = Vendor
100608
Finished Product:
LENOVO_LAPTOP
Raw Materials:
MOUSE_LENOVO
MONITOR_LENOVO
KEYBOARD_LENOVO
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Create Subcontracting PO – ME21N
✓ Components of the material for what you want to create subcontracting PO.
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Create Subcontracting PO – ME21N
✓ Status bar displays the below message once the PO created successfully.
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Stock Overview (MMBE)
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Stock Overview (MMBE)
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Stock Overview (MMBE)
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Stock Overview (MMBE)
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Send Goods to vendor – ME2O
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Send Goods to vendor – ME2O
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Send Goods to vendor – ME2O
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Send Goods to vendor – ME2O
✓ Select KEYBOARD_LENOVO, MONITOR_LENOVO and MOUSE_LENOVO. Then click on Post Goods Issue to
send the goods to the vendor 100608.
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Send Goods to vendor – ME2O
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Send Goods to vendor – ME2O
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Send Goods to vendor – ME2O
✓ Green light means that the goods are sent to the vendor.
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Stock Overview (MMBE)
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Stock Overview (MMBE)
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Stock Overview (MMBE)
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Stock Overview (MMBE)
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Goods Receipt for finished
product
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Goods Receipt for finished product - MIGO
After a few days the vendor will call us and confirm that he have done the assembly and that our finished product
LENOVO_LAPTOP is ready and they are going to deliver.
Here as soon as I post it system will receive 10 pcs of LENOVO_LAPTOP and it will consume 10 of each of the three raw
materials (MONITOR_LENOVO – MOUSE_LENEVO – KEYBOARD_LENOVO).
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Goods Receipt for finished product - MIGO
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Stock Overview (MMBE)
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Stock Overview (MMBE)
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Stock Overview (MMBE)
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Stock Overview (MMBE)
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THANKS!
Any questions?
You can find me at
yassirfahchouch1@gmail.com
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