How do you subcontract in SAP MM?

Subcontracting Purchase Order to SC Vendor-02

1. Create Subcontracting Purchase Order to SC Vendor-02 (ME21N)
2. Keep delivery address to plant as by default.
3. Enter Net Price (Processing cost)
4. In the item detail tab,Material data click on components and Explode BOM 2.

How do I set up subcontracting in SAP?

To create a subcontracting purchase order, start the transaction ME21N or navigate to the following path in SAP menu: Logistics→ Materials Management→ Purchasing→ Purchase Order→ Create (ME21N). In the Item Overview screen, you need to use Item Category ‘L’ which is used for subcontracting documents.

What is subcontracting order in SAP?

Subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. This process is considered better than a complete external procurement as there can be a tighter control on the product quality.

How is movement type determined SAP?

SAP movement type is a three-character key which differentiates various material movements, e.g. Goods Receipt, Goods Issue or Transfer Posting. So, when you use different SAP movement types, different types of screens appear in the transaction MIGO. SAP movement types can also influence message determination.

What is sto in SAP MM?

STO is the intracompany process to transfer materials, between one plant to another within the same company with the same company code. Customizings for STO. You have to register the supplying plant as a supplier and the receiving plant as a customer. The supplying plant can be customized on the vendor master data.

Why SAP MM is used?

SAP MM’s functions include material management, procurement process management, master data management (material and vendor master), inventory management, material requirements planning and invoice verification. All of these MM submodules have functions that perform specific business processes for those modules.

What is a subcontracting process in SAP mm?

In SAP, Subcontracting is one of the special procurement type in the SAP MM. Subcontracting can be defined as the processing of the material by the external supplier to get the final products.

What are the configuration settings for subcontracting in SAP?

(4) You receive ( MIGO) finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you’ll also receive subcontracting by-products. FG BSX acc. Debit Acc. GR/IR Cle.acc. WRX acc. Credit Acc. FRL Acc. Debit Acc. BSV acc. Credit Acc.

How to issue goods to a subcontractor in SAP?

Goods Issue to Subcontractor – Enter Transfer Posting with reference to Subcontracting Purchase Order through (T. Code MIGO/ MB1B) using 541 Movement type. This will issue the material to the Subcontractor. No Accounting Document generate at the time of Transfer Posting.

How to create subcontracting Challan in SAP mm?

Subcontracting Challan – Create Subcontracting Challan with reference of Material Issue Document through T. Code -J1IGSUBCON. Then create Challan using “With Challan”, this will generate the Billing Document (ZSN – SC Challan Document in SD). No taxes have been maintained in the Challan Document.