Configuring Production Subcontracting – External Processing (BJK)

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Configure production subcontracting – external processing (BJK)

Master Data for Production Subcontracting – External Processing (BJK)

Required Master Data Scripts

Create Supplier Master (BNE)A supplier or vendor is a business partner which delivers and sells goods and services to your organization. A business partner can be a supplier and a customer at the same time if, for example, your supplier also buys goods from you.

A supplier master holds information about the supplier such as their name, address, bank details, tax details and billing preferences. This supplier information is used and stored in transactions such as purchase orders, goods receipts and supplier invoices.

Some supplier information is specific to a particular company (known as company code) or purchasing unit (known as purchasing organization) within your organization.

Create Material BOM for Engineering, Production and Sales (BNK)A production bill of material is a formally structured list of the components that make up a product or assembly (part of a product). The list contains the object number of each component, together with the quantity and unit of measure.

A component might be a raw material or a semi-finished material representing an assembly. It is used in an MRP run to calculate material requirements and in transactions such as a production order.

Information is specific to a production site (known as a plant).

Create Routing (BNL)A production routing defines the production process for a material. It contains the operations or work steps to be carried out during production. It defines the use of materials and work centers. It forms a template for a production order and is the basis for product costing.

A routing is defined for a finished product or semi-finished product and is specific to a production site (known as a plant). It applies for a given lot size and consists of a number of operations with each one allocated to a work center.

Create Product Master of Type "Finished Good" (BNT)The material or product master contains information about all the physical materials that are procured, produced, stored, and sold. It is also used to manage information about services, for example, for buying and selling services in hours.

The material master holds information such as unique material number, name, material type, unit of measure, descriptions, weight, and dimensions. This material information is used and stored in transactions such as sales orders, deliveries, purchase orders, and goods movements.

As all information for one material is stored centrally, material master information is organized into different views. For example, sales, storage, MRP, costing, and accounting.

Some information in each material is specific to particular organizational units. For example, a sales description is specific to a sales unit (known as sales area), an MRP controller is specific to a specific site (known as a plant), or some information might be specific to a storage location.

Create Production Work Center (BNJ)A work center is where production operations are carried out. For example, a work center may represent a production line, machine, group of machines, employee or group of employees.

A work center holds information used for capacity planning (such as available capacity), scheduling (such as formula for processing time) and costing (such as cost center). This information is used in task lists and in transactions such as production work orders. Information is specific to a production site (known as a plant).

Create Production Version (BLD)A production version is the link between a product bill of material (BOM) and the process routing. It determines which alternative BOM is used together with which routing to produce a material or plan a material.

There may be different production versions based on the lot sizes and validity dates.

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