Unlike a normal procurement process, our company makes the components for the production of the materials partially or completely available to the vendor. Lets start with discussing the steps that are involved in the subcontracting process in sap. Any waste generated and received during subcontracting process can be maintained as component with negative quantity. For a production material 1001, one raw material 2001 is assigned. Sap mm material management is a functional module in sap that deals with procurement handling and material management. It is mix of sub contracting and a third party process. The service provider provides the part to be maintained to the subcontractor along with other components that may have to be exchanged during the subcontract rework. Subcontracting is one of the procurement processes available in mm. If this is done when we make the gr for purchase order. You require the subcontracting process in sap when a company outsources parts of its manufacturing to subcontractors.
Tell me the subcontracting process with movement types answer sureshkumar. After maintaining the part, the subcontractor returns it to the service provider. Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. This process is considered better than a complete external procurement as there can be a tighter control on the product quality. Sap mm subcontracting process involves sending raw components to a vendor for.
Hi all, i came across with a new functinality third party subcontracting. Sap mm tcodes pdf free download below are the sap tcodes for all sap mm tcodes pdf files free download. Sap mm books, sap mm e books material master related important terms part 2 controlling co an organizational unit in accounting that reflects a managementoriented structure of the organization for the purpose of internal control. Can you upload subcontracting procedure for underconsumed, overconsumed, byproduct, scrap etc conditions. Subcontracting cycle is a process where the customer engages a contractor to make a subassembly. Subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. Subcontracting the vendor thesubcontractor receives components from the ordering party with the help of which it produces a product. The product is ordered by your company through a purchase order. The mm module contains master data, system configuration and transactions to complete the procure to pay process.
In a typical subcontracting process, a manufacturing company provides. Subcontracting process in sap free sap mm training. In subcontracting, you give components to a vendor from which a product is produced. Please feel free to register interest for this course on sap training. For example, if your company requires a product fg1112, then for the production of the said product i. Maintain purchase info record me11for subcontract category for material and subcontractor. Sap mm is implemented in the majority of the sap installations due to its effectiveness in the work. The product is then ordered by your company through a. Sap procurement subcontracting subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. Subcontracting processing online tutorials and free. Subcontracting in purchasing a purchase requisition item for subcontracting can be created either manually or automatically from within requirements planning. The outside person or company in this arrangement is known as a subcontractor.
Sap mm subcontracting process involves sending raw components to a vendor for specific manufacturing processes and receiving the valueadded finished material back into inventory. In the subcontracting process, the materials are supplied to a vendor in order to perform a value added service to the material. Goods receipt of standard and subcontracting purchase order items without account assignment concerning valuated material into stock. Pdf customizing materials management processes in sap. How subcontracting process is mapped get your basics right. In subcontract order processing, the vendor receives materials components with which it produces the end product. Subcontracting in sap sap abap4 programming, basis.
You need to activate the relevant inspection type 0 in the material master in qm view. Classic subcontracting outsourcing production sap blogs. The components that the vendor needs to manufacture the end product are specified in the subcontract order. Sap tcodes the best online sap transaction code analytics. If subsubcontracting is intended, all of these guidelines will apply equally to the subsubcontracting arrangements. You can find further information on subcontracting in the sap document mm inventory management under subcontracting. Sap mm overview presentation for instructors 240 slides february 15, 2017 0 comments in materials management by erpdocs this sample powerpoint slide gives an overview of the procedures listed below which are involved in materials management module of sap. Sap materials management mm is a part of logistics area and helps to manage the. Sap mm erp system has several modules and sap mm is one of the most essential modules. The contractor makes the subassembly and returns it to the customer. You order the end product using a subcontract order.
Production process of 1001 is having four operations 10, 20, 30 and 40. Hi friends, i have provided brief details about subcontracting process as per my experience. Subcontracting process in sap sub contracting cycle 1 a material that can be procured externally, and you have maintained bom with components. More sap mm material management interview questions. The primary work field of this module is the logistics department. We will then notify you when a course has been scheduled. Tell me the subcontracting process with movement types. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. Sap mm material management is one the largest functional module in sap. In this 10, 30, and 40 are internal operations and 20 is external operation subcontracting. A material subcontracting arrangement is defined as any subcontracting arrangement that relates to any critical function as identified in specification 10, section 6 of the registry agreement for the tld a change to a material subcontracting arrangement refers to a change to any backend registry operator also known as a backend service provider or a registry. Subcontracting process in sap mm is a kind of special procurement where your company orders material from external vendor and provides components to the said vendor for production. Sap s4hana for beginners and 7 key things you should know if you are in sap consulting duration.
From the sap easy access screen, choose logistics materials management inventory management goods movement subsequent adjustment subcontracting. Fg1112, company provide two raw materials rm11 and rm12. However, for goods movements for subcontracting, there were no standard sap customizing setting to accommodate the same purchase accounts for spain. Clipping is a handy way to collect important slides you want to go back to later. Subcontracting process in sap free sap mm training erproof. I had searched in customizing and also through some of the oss notes.
In this process, you make an adjustment of the main item, and you reduce the special stock at vendor which leads to nota fiscal generation. In subcontracting process if the subcontracting period of 180 days is completed and if material is still with vendor, how to complete the process. Free download e books for sap for every module down load e book sap basis steps for sap kernel update in windows download sap basis steps to configure sap help library download ebook sap hr pa infotypes e book for sap fi download. Sap mm overview presentation for instructors 240 slides. Subcontracting process in sap mm free sap mm tutorial by. But, this is not a core feature of sap srm but is a procurement for public sectorpps solution.
If the components to be provided are already known in the requisition. This section describes how to procure materials using a subcontract order. During subcontracting process, our company orders material from an external vendor. It describes how subcontract orders are processed in purchasing, inventory management, and invoice verification. For this subassembly the customer makes available the required material to the contractor. The process is similar to a third party scenario, but instead of a vendor, a subcontractor ships the final product to the. In subcontracting process company provides components to vendor for rework and vendor. In this process, components are shared to vendor to get the final product.
The subcontractor sends the invoice for the job work performed. Now customize the name of a clipboard to store your clips. Sap mm i about the tutorial sap is an enterprise resource planning software that was basically designed to manage resources, information and activities that are required to complete business processes such as procurement and managing orders, billing of orders and management of human resources. The only difference technically here is inspite of creation of a third party order it creates a subcontracting order. In this page you will get some sap mm tutorials, details. Let us study the basics of subcontracting to understand. Sap mm module tutorials material management functional. The standard scenario may not need any configuration unless you want to do the subcon movement through delivery. Sap erp help this blog content is manage by geshan weerasinghe. Click on the tcode for more details and click on the functional area to see all the. The different steps and events within the subcontracting process. Any waste generated as scraps or by products received during subcontracting process can be maintained as component with negative quantity or in % basis in the bom in cs01. Purchase order processing with serial numbers assignment outbound delivery of components via subcontracting cockpit goods issue for delivery and shipment to subcontractor stockintransfer shipping notification asn from subcontractor for components goods receipt for purchase order delivered by subcontractor component. You can thereby create an individual mrp area for every subcontractor see planning for components to be provided in subcontracting.