You can raise a purchase requisition to request the material that the subcontractor is to manufacture. You can order the material through a purchase order or scheduling agreement item of the L (Subcontracting) item category. The L item category enables you to create sub-items covering the components to be provided to the subcontractor. You can either manually enter the individual components or generate them through a bill of materials explosion, if a bill of materials exists for the ordered material. The material to be ordered does not require a material master record. On the other hand, components that are provided must have a material master record.
Master Data for Subcontracting
If MRP is to generate a subcontracting purchase requisition with source of supply instead of a standard purchase requisition, the following requirements must be met:
Set the Subcontracting special procurement type in the material master record (MRP 2 view). Otherwise, the requisition will be created with the Standard item category.
Ensure that at least one source of supply (subcontracting info record with automatic sourcing indicator or outline agreement item with subcontracting item category) exists. If several sources of supply exist, you can create a quota arrangement item with the L special procurement type for subcontracting, or a source list.
If the components are to be determined automatically in the subcontracting purchase requisition created by MRP, the following requirements must be met:
Ensure that there is a bill of materials (BOM) containing the components to be provided.
Create a production version for the material to be procured containing a BOM alternative and a usage that matches those of the BOM created for the components.
Store the production version number in the subcontracting info record at purchasing organization/plant level.
If a requirement arises for a material with the Subcontracting special procurement type, a requisition with the L (Subcontracting) item category or a planned order with the Subcontracting special procurement type is generated during the planning run. The L item category is assigned to a planned order when it is converted to a purchase requisition item.
Note
In the planning run, the system explodes the bill of materials and generates dependent requirements for the components. The dependent requirements are included in the net requirements calculation as specially designated dependent requirements (SubReq MRP element).
MRP Areas
To achieve targeted control of the provision of components to the subcontractor, you can create an MRP area for the subcontractor. An MRP area is an organizational unit for which separate materials planning can be carried out. In the case of a supply shortage, a reservation to enable stocks to be transferred to the subcontractor is generated for the components in the MRP area. In the plant, this reservation is shown as a requirement.
You can monitor stocks and requirements per subcontractor in the Subcontracting Cockpit. When you post a goods receipt for an ordered material with reference to a subcontracting item, the system automatically posts the consumption of the components. If the consumed quantity of the components differs from the proposal, you can adjust it. This is also possible subsequently.
To check stocks of materials provided to a subcontractor, on the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Purchase Order → Reporting → Subcontracting Cockpit (ME2ON).
On the SAP Fiori launchpad the following alternative apps are available:
- Display Subcontracting Stocks by Supplier (ME2ON)
- Subcontracting Cockpit
Subcontracting Process in Purchasing: Important Points
Regarding the subcontracting process in purchasing, you should note the following:
If you change the purchase order or schedule line quantity, the quantities of the components to be provided are changed proportionally, provided you have not set the Fixed Quantity indicator.
If you change the delivery date, only the date on which the components are required is recalculated. The components themselves are not redetermined from the bill of materials. If you want the components to be redetermined, you must carry out a new bill of materials explosion.
The order date always appears as the default requirement date for the components.