Applicable Process Steps
|Create subcontracting purchase requisition|
In this optional step, you create a subcontracting purchase requisition either manually or automatically via the Material Requirements Planning (MRP). To specify in a purchase requisition that a material is to be ordered in subcontracting, enter the item category Subcontracting (L).
For each subcontracting item, you must enter one or more sub-items for the components to be provided. If a BOM with the components exists for the material to be procured, the components from this BOM are copied to the subcontract item. You can also enter the components manually or add further components to the components from the BOM.
|Create subcontracting purchase order|
In this step, you create a subcontracting purchase order manually if there is no purchase requisition to refer to. Alternatively, if you work with purchase requisitions, you can convert them into purchase orders.
You create subcontract items in a purchase order by using the item category Subcontracting (L). For each subcontract item, you must enter one or more sub-items for the components to be provided. If a BOM with the components exists for the material to be procured, the components from this BOM are copied to the subcontract item. You can also enter the components manually or add further components to the components of the BOM. The purchase order price is the price of the subcontracting service and possibly the materials provided by the subcontractor.
You can store conditions for subcontracting in a purchasing information record of the type subcontracting.
|Approve subcontracting purchase order (optional)||In this step, a purchase order is to be approved by a manager.|
|Monitor subcontracting purchase orders||In this step, you monitor your subcontracting purchase orders, using filter criteria such as subcontractor, component, material group, assembly, and plant.|
|Monitor the stock /requirements situation of the components at the supplier|
In this step you can monitor your stock of material provided to vendor. The components that you provide to a subcontractor are managed in a vendor-related special stock. This stock is managed at plant level and not at storage location level because the material is not in your own company, but at the vendor. Nevertheless, this special stock is part your own stock and available for planning.
For stock provided to vendor, the stock types "unrestricted-use stock" and "quality inspection stock" are possible. The quantities consumed by the subcontractor can only be withdrawn from unrestricted-use stock. A physical inventory must be carried out for the stock of material provided to vendor.
|Create outbound delivery (for components)|
You must provide the subcontractor with the components required to manufacture the ordered material.
In this step, you create an outbound delivery for the components.
|Pick and post goods issue (for components)||In this step, you post the goods issue for the components. Providing components to a subcontractor corresponds to a transfer posting from storage location unrestricted-use stock to the stock of material provided to vendor.|
|Post goods receipt from subcontractor|
The procedure for posting a goods receipt with reference to a subcontract order does not differ from the procedure for posting a goods receipt with reference to a normal purchase order.
Only the posting results differ:
Not only the receipt of the finished products, but also the consumption of the components from the stock of material provided to vendor are posted. You can still change the consumption quantities of the components manually. These changes are necessary if the vendor informs you of increased or decreased consumption of components in the delivery.
The goods receipt is valuated with the price of the subcontracting service and the value of the components consumed.
|Post supplier invoice||In this step you post the incoming invoice from subcontractor.|
If subcontract purchase requisitions are to be generated automatically by the MRP run, you need to set the special procurement key for subcontracting in the material master record on plant level.
Also there must be a BOM containing the components to be provided.
Goods issue slip
Goods receipt slip