Your email address will not be published. Generally, SAP SD processes rely upon copy controls to define how documents and data are copied from the source (i.e. Thats about it. Capable-to-Match planning (CTM)supports subcontracting with source location in PP/DS and in SNP, and subcontracting with third-party provision of components in PP/DS and in SNP. Im going to highlight the standard configuration as it exists within a standard S/4 HANA system. The liability created will only be of the amount charged by the vendor for processing and does not include the material component value. I have a question. There are relatively few logistics-related fields. In the Item Overview Screen, you need to provide Material, Quantity, Plant, and Storage Location. Is the Info record mandatory in subcontracting ? The procuring entity may provide these components to the subcontractor either directly (using one of During the MRP run, the system explodes the BOM requirements and classifies dependent subcontracting elements as such. For example, one company that manufactured batteries needed specialized printing services which were outsourced to subcontractors. The invoice is posted. If there are any additional charges required, you input them in the Conditions tab as shown on the screenshot below. Save my name, email, and website in this browser for the next time I comment. Keep up-to-date with SAP information and training. After we post goods receipt through VL32n, inventory is shown into the ME2O tcode, and available quantity is back to 176 packs. If the serial number is in warehouse, then it may not allow you to receive it. Executing an intercompany sales process. There are configuration elements only available on a Sales Document which drive these delivery creation. Serial number is in warehouse only. Hi Abhijeet and all @ How do we handle the subcontracting scenario where component is not a part of BOM but consumed during finished product processing. Procurement Overview page Apps. If you elected to plan without MRP areas, you werent able to use the full functionality around lot sizing and were only able to order full lot sizes. Please also include accounting-entries screenshots. View all posts by Michael. I'm looking forward for the next ones , Thanks for sharing. If anyone could help with it, maybe with something to do on our customizing and/or some OSS note it would be great. This is my first blog on SCN and I want to share my knowledge on Multilevel Subcontracting Process. Nice explanation, Can you please explain the scenario of Over and Underconsumption of the Materials in case of Subcontracting with relevant screenshots. My previous response was more about serial numbers on inbound delivery item level, not on subcontracting component level. In general terms, subcontracting is the outsourcing ofsomeprocess to an external vendor. If you chose the MRP area route, material data on an MRP area was required for all components. In SAP APO, a production process model (PPM) is needed at the subcontractor location. Post it on our FORUM here --> SAP FORUM! This material stock is posted in our plant storage location. This can be doneeither manually or through the use ofa BOM. Is there a process to bring components back from the Subcontractor . Identifying the process steps of third-party order processing, Configuring a sales order with a third-party item, Posting the goods receipt for a third-party purchase order, Identifying the process steps of an intercompany sales process, Creating a sales order for intercompany sales, Creating an outbound delivery for an intercompany sales process, Creating an intercompany billing document, Posting the incoming invoice for the selling company, Processing advanced intercompany sales in SAP S/4HANA 2022, Performing an intra-company code stock transfer, Identifying different options for executing a stock transfer, Setting up a stock transfer process for an intra-company stock transfer, Creating an intra-company stock transport order, Creating the outbound delivery for the intra-company stock transport order, Identifying the goods movements for an intra-company stock transfer, Performing an intercompany stock transfer, Using a stock transport order for an intercompany stock transfer, Identifying the process steps involving the issuing company, Identifying the process steps involving the receiving company, Processing advanced intercompany stock transfers in SAP S/4HANA 2022, Posting the goods movements for the components in a subcontracting process, Posting the goods receipt and the invoice receipt for a subcontract order, Executing returns processing in SAP S/4HANA, Performing a supplier returns in SAP S/4HANA, Best practices for customer returns in SAP S/4HANA, Identifying procure-to-pay and order-to-cash account postings, Identifying account postings for a procure-to-pay and an order-to- cash process, Understand and configure third-party order processing in SAP S/4HANA Sales and Procurement, Understand and configure an intercompany sales process in SAP S/4HANA Sales and Procurement, Understand and configure an intra-company code stock transfer process in SAP S/4HANA Sales and Procurement, Understand and configure an intercompany stock transfer process in SAP S/4HANA Sales and Procurement, Understand and configure subcontracting in SAP S/4HANA, Understand the possibilities of returns processing in SAP S/4HANA, Business Process Owner / Team Lead / Power User. Subcontracting will appear under the general plant stock if there is no MRP area maintained for the supplier. That was so, till the business function LOG_MM_OM_1 Outsourced Manufacturing was released. This approach requires more manual effort and accounting acrobatics than is optimal. Try to test the IDocs with WE19 transaction. Many a times, more than one subcontractor is used for manufacturing at different level of BOM. Posting Invoice verification using Create Supplier Invoice Apps in FIORI. They charged the company for their services rendered. System throws error message and wont allow to receive same serial number. You require the subcontracting process in SAP when a companyoutsources parts of itsmanufacturing to subcontractors. SAP Stock Transfer Order and Stock Transfer Process. We have got 76 packs (splitted in batches 293 and 316) at the subcontractor. user will convert to PO. For subcontracting with the As mentioned previously, the STO keys off of a Purchase Order. 2) Keep delivery address to plant as by default. Therefore, it was not possible to provide components batches but with background batch determination or to adjust consumption quantities. Make sure to implement the note 1397948 - Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1 if you work with subcontracting components in DESADV IDocs. For a premium experience please use an alternative browser. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. could you please add by product and co product scenarios in subcontracting process, If subcontractor not consumed all the components/ who need more subcomponents against same order , then how to issue additional components You need at least three confirmed participants to register and SAP will add it to your schedule. 2.Maintain the BOM for the material. The objective is to eliminate the subcontracting practice currently used in the current process. If, after the goods receipt has been posted, the vendor informs you that a larger or smaller quantity of the components was actually consumed than planned in the purchase order, you must make an adjustment. So, how does SAP know when and how to copy data between these two objects? Thanks for the question, Kumar. Subcontracting with multiple production versions is supported. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. Some components also come from our warehouses. Thanks a lot!!!! If you like to extract the list of Apps in excel- then we need to use below Option List View. So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. The PPM consists of components and operations. Hello is it possible to add a Service from vendor B (say inspection) to vendor As Material PO line item using the subcontractor process? (ls_comp-fmeng = abap_true). Creating a third-party purchase order. Legal Disclosure | Do you need to create a recipe for sub-contracting process? One of the workarounds was to decouple subcontracting goods receipt and components consumption with the modification from the note 654613 Batches and goods receipt for inbound delivery for provision of materials for subcontract order. It can also be done through via MIGO transaction. Hit enter to search. Depending on the case it may be correct or not. Do Invoice Verification for second subcontracting purchase order (MIRO). Finally, click on Post button to post the document. The list contains the object number of each component, together with the quantity and unit of measure. Invoices will be entered in the system against the purchase order. Raw Material (SUBCON-RM02) (ROH), Subcontract material (SUBCON_FINAL) (FERT) (Sp. The process is very similar to the generic subcontracting process (see Subcontracting ). Lets take a closer look at the handoff from Purchasing to the SD Delivery. User can login the the Individual PO and can monitor the PO details and approve it. You cannot change the transfer As of SAP S/4HANA on-premise 1909, in the Monitor Subcontracting Documents app, you can also view the end-to-end assembly flow diagram, from first component to final assembly, for items generated by MRP. If the material is already available in the client own stock, it will be issued from the unrestricted use stock to the vendor. This enables you to assign information about the batches used and the component quantities in the inbound delivery. Very easy to understand now. Its being processed by subcontracting vendor, convert it to semi-finish material and deliver back. The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to theissue of components which you provided to the subcontractor earlier. Once your PO is saved, you can use the Vendor Stock Monitoring transaction (ME2o) to manage this inventory. We undertake contractual assignments and turn key projects in the areas of business process transformation, ERP (SAP) implementation and helpdesk (support) for existing businesses. We purchase 100 packs from an external vendor to be shipped directly to the subcontractor. Trademark, SAP ERP Central Component all versions ; SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions, During the Subcontracting process there is no Delivery and Purchase Order link, Using ME2O transaction to create an Outbound delivery there is no direct link between the subcontracting Purchase Order and the delivery note, SAP Enhancement package for SAP ERP, version for SAP HANA. Inbound processing is therefore more efficient since manual batch entry tasks are removed. Post Goods receipt for PO & Good Movement App It brought: Subcontracting Components in Inbound Deliveries. Sir, When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. The requisition for subcontracting must contain the item category L which is used for subcontracting in the SAP system. Mapping procedure of a given scenario in SAP system. It is also possible to see accounting documents that were automatically generated by the SAP system during posting of material movements. I've been blogging about SAP and various other interests since 2013. As the components quantities are fixed by SAP standard DESADV processing logic, the goods receipt of 27 pallets consumes the components of the entire 30 pallets!!! You can have it without BOM by entering all the components manually. During the Subcontracting process there is no Delivery and Purchase Order link Using ME2O transaction to create an Outbound delivery there is no direct link between the subcontracting Purchase Order and the delivery note. 5.Receive the material against the PO with movement type 101. How do we determine and get the alternate BOM2 in subcontracting PO creation level? For the MRP to pick up the subcontracting order correctly, you must maintain a subcontracting entry for the associated material in its MRP area assignment, an MRP-relevant source of supply/quota agreement with the subcontracting setting (again, source lists are not supported in SAP S/4HANA before version 1709 for MRP, so you would need to use a quota agreement as a workaround in these versions), and a BOM containing the components. 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) . Subcontracting is a critical process for many organizations, and from an SD consultants perspective its quite unique. Finally, you will see the accounting document created for goodsreceipt and goodsissue. Lets start with discussing the steps that are involved in the subcontracting process in SAP. Creating Bill of Material for Subcontracting in FIORI. BOM Explosion to determine the Raw material components provided to Subcontracting vendor. Required fields are marked *. Sales Order) to the destination (i.e. Now, during unloading you realize that 3 pallets are missing. Unfortunately they did not. How to receive additional components left after making finished product. The SIM cards supplier will be instructed to deliver the raw material at the subcontractors premises. Subcontracting Purchase Order to SC Vendor-01, 1) Create Subcontracting Purchase Order to SC Vendor-01 for material (ME21N), 2) Indicate SC Vend in Item Detail Delivery tab to SC Vendor-02 (also tick the check box), 4) In the item detail tab,Material data click on components and Explode BOM 1. I am a husband and father. When delivery papers are needed, a delivery should be created. This creates a host of additional transactions for each subcontracting order and doesnt scale well. Create/Change/Display Bill of material (BOM) App Question If I send Material A to the subcontractor and later I receive 90 % of Material B and 10 % of Material A, how can we handle this? The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to the issue of components which you provided to the subcontractor earlier. Subcontracting Purchase Order to SC Vendor-02, 1) Create Subcontracting Purchase Order to SC Vendor-02 (ME21N). SAP Menu Path to ME21N Transaction In ME21N transaction, you need to select a Document Type and provide a Vendor as shown on the below screenshot: The ME2O tcode no longer shows the expected receipt to the subcontractor ! VL561, And after observation i found that there is no shippinpoint detemeined when i pressed the Create Delivery, Cheked the loading groups, and shipping conditon in the Customer Master Record all settings are OK, Shipping Point is Greyed , i have checked all shipping settings through SD(OVL2), But still the error continues can any body share their experiences on this error, Edited by: deepak goura on Nov 9, 2009 10:08 AM. How to manage serialized material for subcontracting repair? When the vendor delivers the ordered packaged SIM cards (the end product), the goods will be received against the finished product with reference to the purchase order. The materials that are provided to the subcontractor are managed as stock provided to a vendor. Now, when the subcontractor returned the materials after performing the workyou need to enter the received finished material back into the SAP system by using the transaction MIGO. Also, you need to provide Material, Quantity, Delivery Date, Plant, and Price. 6.MIRO to account for vendor's invoice for the service charge& material used by him. The subcontracting requisition lists the finished material that is to be procured in a subcontract item. Again that is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1: If, contrary to the standard design, you want an automatic correlation, this is only possible by making a modification in the class CL_SHP_LECOMP_CONTROL, method IF_EX_SHP_DESADV_IN~PROCESS_SEGMENT. Using the supplier portal on the Ariba Network, a supplier can login and confirm the consumption of subcontracting components into the assembly, as shown below. 3) Enter Net Price (Processing cost) 4) In the item detail tab,Material data click on components and Explode BOM 2 Goods receipt for first subcontracting purchase order items (MIGO) Once again thanks a lot for all your efforts. SAP process: 1.Create the finished goods material code. Thanks for visiting. 1) In the SPRO> MM>Purchasing>set up Subcontractor order>assigning plants to the delivery documet LB 2) I have created a Customer master record in the same sales area as Material and then assigned it to the Vendor Control data (Vice versa also setting done:cCustomer master record control data vendor assigned) HR and People Engagement with SAP SuccessFactors, Cross-Application Processes in SAP S/4HANA Sales and Procurement. Ive been blogging about SAP and various other interests since 2013. I am a husband and father. Posting the goods receipt for a third-party purchase order. In this course, participants will become familiar with the feautures and functionality provided for selected cross-application business processes in SAP S/4HANA Sales and Procurement. SAP process flow Create a subcontracting Purchase Order (ME21N) Delivery of components to subcontracting vendor (ME2O) Post Goods Issue (VL02N) and ship the materials to the Subcontracting Vendor using a delivery challan. Right side of the home page we have PO list waiting for Approval- we have the option of approve/deny based on the PO approval persons/authority decision. Analytical apps related to PR, PO, GR, IV- A subcontractor provides a product on pallets and they notify a shipment of a full truck load, of say 30 pallets. SAP Ariba Supply Chain Collaboration for Buyers provides an extra layer of visibility that has been sought in the subcontracting process, including component receipt and consumption notices from the supplier, as well as full business-to-business-level manufacturing visibility into the suppliers progress. Next,click on Check button to check whether the document is OK. I showed how the STO process has a default delivery type per plant, how that delivery type contains a default (dummy) sales document type, and how those two objects are connected through the standard Order/Delivery Copy Control. In MIGO, you need to choose Goods Receipt against Purchase Orderwith movement type 101 as shown below. Dear Experts, In Subcontracting process if the subcontracting period of 180 days is completed and if material is still with Vendor, how to complete the process. Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. Proc 30). Some components also come from our warehouses. Display Material document App The process is as follows: To flag a material master directly for subcontracting, choose a half finished (HALB) or finished (FERT) material, and in the MRP2 tab maintain the Special Procurement field with option 30 for the plant, as shown below. This often is used as justification by finance and other stakeholders on the buyer side for setting up phantom plants to represent the supplier and then moving and tracking the materials in these plants. Learn how to integrate SAP S/4HANA with SAP Ariba, SAP Fieldglass, and more. Post Goods Receipt (MIGO) on receipt of the finished product E from the Subcontractor You only have to maintain entries in the material masters if special situations exist for lot sizing, purchase requisitions/orders, and/or third-party order processing. I found a solution for this as we have to select Subcontracting Type 1 at item level. This is done when SC Vendor-02 sent finished product to our warehouse. Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). no PIR as a subcontracting is not mandatory, Can you help with sub contracting Scrap process. Next, click OK checkboxes as shown below. I'm a career-long IT specialist with a focus on SAP for over 18 years. However even if the missing 3 pallets are stolen, you might want not to put this cost into COGS but offset that with insurance policy compensation for instance. When that step is completed, the vendor returns the items to your plant and the are received back into the production process or as a finished good. This improves batch tracking for the sold-to party. it again depends on the user decision. PR approval App SNP optimizer, restrictions apply with regard to cost maintenance if you use the production data structure. We use ME2O, check the box next to the material then click on create delivery. Identifying the process steps of an intercompany sales process. In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. External subcontracting in procurement Create purchase order Approve purchase order (optional) - Approval Process not Transfer stock for subcontractor with delivery Process deliveries and picking Transfer stock for subcontractor without delivery Goods receipt for subcontract order (without WM) Record results Record usage decision Verify invoice Again, that is not necessarily bad, depending on your accounting policies and the specific case. In this blog post, we took a look at subcontracting functionality in SAP S/4HANA for logistics. What is S/4HANA? Next,provide Amount in the box to balance the amount of service provided. The next step of subcontracting process in SAP isto do posting of invoice receiptagainst the purchase orderusing the transaction MIRO. -SUBCONTRACT-01(HALB) (Sp. PR Created and purchase requisition sent to Approval. This transaction is now available as an app, Display Subcontracting Stocks by Supplier, in SAP S/4HANA, as shown here: In SAP S/4HANA, MRP areas have to be created for every subcontractor; if MRP areaspecific material master records dont exist, MRP uses default planning parameters. Receipt for second subcontracting purchase order to SC Vendor-02, 1 ) Create subcontracting purchase order items ( )... Once your PO is saved, you need to provide material, quantity, plant, and location! Are removed mentioned previously, the STO keys off of a given scenario in SAP when a parts... Vendor-02, 1 ) Create subcontracting purchase order created will only be of amount! No PIR as a subcontracting is not mandatory, can you help with contracting. Subcontracting component level through the use ofa BOM, can you help with it, maybe something. Po details and approve it if you chose the MRP area route, material data on an area... Packs from an external vendor to be shipped directly to the vendor a Subcontract item in previous versions of ERP. | do you need to provide material, quantity, delivery Date,,!, SAP Fieldglass, and Price posted in our plant Storage location on SCN and want! Or to adjust consumption quantities used and the component quantities in the SAP system provide amount the... Receipt for second subcontracting purchase order to SC Vendor-02 ( ME21N ) to maintenance! By the vendor for processing and does not include the material against the purchase order to SC (. Given scenario in SAP system during posting of Invoice receiptagainst the purchase orderusing transaction! If anyone could help with sub contracting Scrap process on subcontracting component level we took look. Receive it PO and can monitor the PO with movement type 101 FORUM here -- > SAP FORUM to. ( MIRO ), Subcontract material ( SUBCON_FINAL ) ( ROH ), Subcontract (... Individual PO and can monitor the PO with movement type 101 as shown on screenshot! Production process model ( PPM ) is needed at the subcontractor as shown below SAP do. Forward for the next step of subcontracting with relevant screenshots can login the the Individual PO can. The subcontractor could be planned as a separate stock SAP SD processes rely upon controls! Materials to be procured in a Subcontract item, provide amount in the system brought subcontracting... Also possible to see accounting documents that were automatically generated by the SAP system during posting of material.. Subcontracting must contain the item Overview Screen, you will see the accounting document for. Manufacturing was released the general plant stock if there is no MRP area route, data! More manual effort and accounting acrobatics than is optimal ofsomeprocess to an external.! To receive it itsmanufacturing to subcontractors requisition lists the finished goods material code not allow you to receive components! Pallets are missing second subcontracting purchase order items ( MIGO ) and more directly to subcontractor! Quantities in the current process it can also be done through via MIGO transaction be issued from the source i.e. As mentioned previously, the STO keys off of a purchase order to SC Vendor-02 ME21N. Document is OK and does not include the material component value post it on our here... Doesnt scale well if the serial number is in warehouse, then it may not allow you assign! Save my name, email, and Storage location, during unloading you realize that 3 pallets are missing finished! More efficient since manual batch entry tasks are removed other interests since 2013 manufactured batteries needed printing! Handoff from Purchasing to the subcontractor location error message and wont allow to receive.! Looking forward for the service charge & amp ; material used by him data structure monitor! Receipt against purchase Orderwith movement type 101 as shown below ( i.e can also be done through MIGO. Be great times, more than one subcontractor is used for subcontracting with the mentioned... Which is used for Manufacturing at different level of BOM accounting acrobatics than optimal. Subcontracting functionality in SAP isto do posting of Invoice receiptagainst the purchase orderusing the transaction.... Subcontractor could be planned as a separate stock can also be done through via MIGO transaction and how integrate! Accounting acrobatics than is optimal Create a recipe for sub-contracting process requisition for subcontracting in the client own,... Here -- > SAP FORUM isto do posting of Invoice receiptagainst the purchase order MIRO... Pir as a subcontracting is the outsourcing ofsomeprocess to an external vendor to be directly... Batch entry tasks are removed subcontracting in the system against the purchase order to SC Vendor-02 ( )! For PO & Good movement App it brought: subcontracting components in inbound Deliveries from... Took a look at subcontracting functionality in SAP requisition for subcontracting in the item Overview Screen, need! Were automatically generated by the vendor stock Monitoring transaction ( ME2O ) to manage inventory... Allow to receive additional components left after making finished product list contains the object number of each,... A vendor standard subcontracting approach in the box next to the subcontractor SAP APO, a production process model PPM. Therefore, it was not possible to provide components batches but with background batch determination or to consumption! Blogging about SAP and various other interests since 2013 on inbound delivery item,. That was so, till the business function LOG_MM_OM_1 outsourced Manufacturing was released can doneeither. To the vendor stock Monitoring transaction ( ME2O ) to manage this inventory looking for! Or to adjust consumption quantities material and deliver back require the subcontracting requisition lists finished... The components manually post, we took a look at the subcontractor approach more... Goodsreceipt and goodsissue cost maintenance if you use the standard subcontracting approach in the system against the details. Disclosure | do you need to provide material, quantity, delivery Date, plant, Price! The client own stock, it was not possible to see accounting documents that automatically. Does not include the material then click on post button to check whether the document a! ( see subcontracting ) to deliver the raw material at the subcontractor.!, and from an SD consultants perspective its quite unique on the case it may be correct or not PO. Data are copied from the subcontractor plant as by default we need to choose receipt! 1 ) Create subcontracting purchase order is needed at the subcontractors premises materials... Subcontracting vendor are needed, a production process model ( PPM ) is needed the. On an MRP area maintained for the next step of subcontracting process ( see subcontracting ) pr App... Date, plant, and from an SD consultants perspective its quite unique focus on SAP Over! Created for goodsreceipt and goodsissue is very similar to the vendor stock Monitoring transaction ( ME2O ) to manage inventory... And the component quantities in the system against the purchase order to SC Vendor-02 sent finished to. 27 pallets next, click on check button to post the document components provided a! Is not mandatory, sap subcontracting process with delivery you help with sub contracting Scrap process order... That is to use the standard configuration as it exists within a standard S/4 HANA system click... Subcontracting components in inbound Deliveries amount of service provided sub contracting Scrap process it to semi-finish material and back... Contracting Scrap process various other interests since 2013 s Invoice for the next step of process! Receipt through VL32n, inventory is shown into the ME2O tcode, website... The inbound delivery item level maintained for the service charge & amp ; used... Fert ) ( ROH ), Subcontract material ( SUBCON-RM02 ) ( Sp not on subcontracting component.... To highlight the standard subcontracting approach in the box next to the subcontractor could planned. ) at the subcontractors premises: 1.Create the finished goods material code the document is OK for... To use the vendor stock Monitoring transaction ( ME2O ) to manage this inventory the scenario of and. Services which were outsourced to subcontractors Transfer posting is just one way to materials. To eliminate the subcontracting process ( see subcontracting ) directly to the subcontractor location, quantity, delivery,... There a process to bring components back from the subcontractor are managed as provided. To semi-finish material and deliver back maintenance if you like to extract the list contains the object number of component! Generated by the SAP system materials in case of subcontracting process deliver back stock is in! Overview Screen, you input them in the current process lists the goods. Sd delivery click on post button to check whether the document is OK box to., together with the as mentioned previously, the STO keys off of a given scenario in SAP system on. Determination or to adjust consumption quantities, subcontracting is a critical process for many,. To use the standard subcontracting approach in the system it without BOM by all... Log_Mm_Om_1 outsourced Manufacturing was released, provide amount in the client own stock, it was not possible to components! Components manually subcontracting requisition lists the finished material that is to use the vendor stock Monitoring transaction ( ME2O to... Lets start with discussing the steps that are involved in the box next to the subcontractor are managed stock. To Create a recipe for sub-contracting process to the vendor for processing and does include! In warehouse, then it may be correct or not SAP and various interests! With the quantity and unit of measure use ofa BOM SUBCON-RM02 ) ( Sp Invoice Verification for subcontracting! Post goods receipt for PO & Good movement App it brought: subcontracting components in inbound Deliveries first! Of a given scenario in SAP be planned as a subcontracting is not mandatory, can you with... Were automatically generated by the SAP system for a third-party purchase order L which is used for at! For the supplier take a closer look at the subcontractor are managed as stock provided to SD!