Demonstrating the Subcontracting Collaboration Process

For an overview of Subcontracting Collaboration Process, watch this video.

Before beginning the process of Subcontracting, we will examine the stock of frames and wheels that the Buyer has on hand. This will help us understand how the stock is updated at different steps in the process.

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The Buyer creates the Subcontracting Purchase Order by specifying Item Category L at the line item level.

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Select the start button to watch.

The Supplier creates the Subcontracting Order Confirmation on Ariba Network. It is sent to the Buyer.

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Select the start button to watch.

The Buyer creates the outbound Delivery Note and posts the Goods Issue in preparation to sending the components to the Subcontractor

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Select the start button to watch.

Use SAP Fiori app Display Stock Overview or SAP transaction code MMBE to display the Stock Overview: Company Code/Plant/Storage Location/Batch screen.

The Stock Overview: Basic Listscreen displays for FRAME.

Note that the quantity for FRAMEs in the Stock Provided to Vendor has increased by 5 and the Buyer’s own stock has decreased by 5:

• Stock Provided to Vendor (60 instead of 55)
• Buyer’s own stock (22 instead of 27)

The Stock Overview: Basic Listscreen displays for WHEEL.

Note that the quantity for WHEELs in the Stock Provided to Vendor has increased by 10 and the Buyer’s own stock has decreased by 10:

• Stock Provided to Vendor (68 instead of 58)
• Buyer’s own stock (96 instead of 106)

1. The Subcontractor logs into their Ariba Network account.
2. Choose Fulfillment＞Extended Collaboration.
3. Choose Component Inventory.

Note that the quantities for FRAME and WHEEL reflect the Stock Provided to Vendor quantities on the SAP system.

The Buyer ships the components to the Subcontractor. When the Subcontractor receives the components, they send a Component Receipt to the Buyer.

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Select the start button to watch.

The Subcontractor consumes the components and sends Component Consumption Documents to the Buyer. If the Buyer has configured their system for real-time consumption, their inventory is updated as they receive the Component Consumption Documents. If the Buyer has not configured their system for real-time consumption, the Component Consumption Documents are ignored.

Select the start button to watch.

Select the start button to watch.

Use SAP Fiori app Display Stock Overview or SAP transaction code MMBE to display the Stock Overview: Company Code/Plant/Storage Location/Batch screen.

1. The Subcontractor logs into their Ariba Network account.
2. Choose Fulfillment＞Extended Collaboration.
3. Choose Component Inventory.

Note that the quantity for FRAME has decreased by 5 and the quantity for WHEEL has decreased by 10. This reflects the Consumed Components entered by the Subcontractor on Ariba Network.

The Stock Overview: Basic List screen displays for FRAME.

Note that the quantity for FRAMEs in the Stock Provided to Vendor and in the Buyer’s own stock is unchanged. This is because the Buyer has configured their system for backflush.

As a result, Component Consumption Reports are ignored. Instead, the inventory is updated after the Buyer sends the Goods Receipt for the finished goods.

On the Stock Overview: Basic List screen for WHEEL, we notice the same: the stock quantities are unchanged.

Because the Buyer is using backflush, Component Consumption Documents are ignored and inventory is only updated after the Buyer sends the Goods Receipt for the finished goods.

The Subcontractor completes the consumption of the components. They create an Advance Ship Notice for the finished goods and send it to the Buyer.

Select the start button to watch.

Select the start button to watch.

The Subcontractor ships the finished goods to the Buyer. When the Buyer receives the finished goods, they send a Goods Receipt to the Subcontractor.

Select the start button to watch.

Select the start button to watch.

Use SAP Fiori app Display Stock Overview or SAP transaction code MMBE to display the Stock Overview: Company Code/Plant/Storage Location/Batch screen.

The Stock Overview: Basic List screen displays for FRAME.

Note that the quantity for FRAMEs in the Stock Provided to Vendor has decreased by 5 while the Buyer’s own stock remains unchanged:

• Stock Provided to Vendor (55 instead of 60)
• Buyer’s own stock (22)

The Stock Overview: Basic List screen displays for WHEEL.

Note that the quantity for WHEELs in the Stock Provided to Vendor has decreased by 10 while the Buyer’s own stock remains unchanged:

• Stock Provided to Vendor (58 instead of 68)
• Buyer’s own stock (96)

When the Subcontractor receives the Goods Receipt, they create an Invoice and send it to the Buyer.

Select the start button to watch.

Select the start button to watch.