SUBCONTRACTING IN PM/CS

Overview:
Subcontracting is used to process the external repair of a serialized component. You receive a serialized
component into stock in an unserviceable condition. You send the material for repair or overhaul to a
subcontractor. Once the subcontractor has completed the work, you receive the material into stock in a
serviceable condition.
Subcontracting supports plant stock and various special stocks such as sales order stock, customer stock,
project stock, and so on.

Current ATLAS Process:

Currently in ATLAS, a custom report: “/SIE/1I_DLVCRESUBCON - Delivery creation Subc./ext. Proc. (E-
116)” Is used for Subcontracting Purchase Orders which allows creation of a Delivery for Project Specific
“Free Issue” Components to be sent to the Vendor.
The report was created because at that time there was no standard way to carry out a subcontracting
process in PM/CS or even PP.

Simplified process flow:

1. Create P.R from Service Order
Service orders are enhanced to incorporate subcontracting processes.
An externally processed operation can now be selected as relevant for subcontracting:

Material which needs to be sent to the vendor will be assigned to this operation.
If more parts are required by the subcontractor, they can also be entered on the Component tab page.
They will be treated differently by the system for instance as spare parts(consumption) depending upon
the parameters/criteria selected.

Monitor subcontracting process > ADSUBCON

The Subcontracting Monitor provides a comprehensive overview of all relevant information for the parts
used within the subcontracting process along with tracing the material in real time. These steps will
follow after creation of the P.R from the service order:

2. Create purchase order for the P.R:

From the Subcontracting Monitor, you create a subcontracting purchase order with reference to the
purchase requisition. You can also change the P.R before creating the P.O
3. Create outbound delivery
Create outbound delivery for the issuing components in the Subcontracting Monitor. All components
from the component level of the purchase order item are copied to the outbound delivery. Multiple
outbound deliveries (with related goods movement) is supported.

4. Post goods issue

You post the goods issue of the main component to be repaired together with possible consumables to
the subcontractor stock against the delivery.
5. Post goods receipt
Once the part is repaired and/or overhauled, it is sent back by the subcontractor. The subcontractor can
also provide a replacement part for technical or commercial reasons.
During goods receipt, all the parts that were provided to subcontractor for the purpose of repair get
posted as consumed.
You post the goods receipt with reference to the purchase order. The goods receipt consists of the
following:
 Goods receipt (movement type 101) to update the plant stock of the received part.
 Goods issue from the subcontractor stock (movement type 543) to issue the provided components,
including the main one from the subcontractor stock.

 If the receiving component is physically different from the original part, an unplanned serial number
change is possible when posting goods receipt
Depending on the data maintained in the material master record, an inspection lot is automatically
created in the background.
Monitor subcontracting process > ADSUBCON
 Purchase requisitions, purchase orders, deliveries, and material documents are displayed in a tree
structure per plant, vendor, and material.
 Stock overview for the selected materials is displayed.
 Key data is displayed for each document. If you need further information, you can access the
standard transactions for maintaining or viewing the document.