Sub-Contracting Process

Sub-Contracting - Characteristics
 The processing has the following characteristics:
 You order the finished product with a subcontract order that also
contains entries about the components to be provided for the
subcontractor.
 In Inventory Management, the components are posted/provided in
the stock of material provided to vendor.
 The subcontractor supplies his service and delivers the manufactured
or processed material. The goods receipt for the finished product is
entered in Inventory Management. The consumed components are
therefore cleared from the stock of material provided to vendor.
 If the subcontractor reports an excess consumption or
under consumption of components after the goods receipt posting,
this can be corrected with a subsequent adjustment.
 The subcontractor shows the service actually planned in the invoice.
 The invoice is entered in Logistics Invoice Verification.
SC - Purchasing
SC – Inventory Management
Inventory Management supports the following
functions within subcontracting:

• Provision of components, special stock form

stock of material provided by vendor
• Goods receipt for finished product with
consumption of components
• Subsequent adjustment if excess consumption
or under consumption of components
• Transfer postings (material to material, stock
to stock, plant to plant)
Special Indicator for SC item
Provision of Components
Goods Receipt for SC