SAP Subcontracting

SAP Subcontracting involves sending components to a vendor where an assembly is manufactured. The vendor returns the completed assembly, and during goods receipt, the components are issued from subcontract inventory. Subcontracting is a purchasing-controlled process.

The special procurement type field in the material master MRP 2 view determines if you manufacture a material with the subcontracting process.

You can view or change material master views with Transaction MM02 or by following the menu path:

Logistics • Production • Master Data • Material Master • Material • Change • Immediately

Select the MRP 2 tab to display the screen shown in Figure 1.

Figure 1: Subcontracting Special Procurement Type

Right-click in the Special procurement field and select Possible Entries to display a list of special procurement types. This indicates to MRP to create a purchase requisition or order to issue to the subcontract vendor and searches for a subcontract purchasing info record.

When working on SAP Subcontracting we recommend you work with our ERPCorp SAP experts.

You create a subcontract purchase order with Transaction ME21N or by following the menu path:

Logistics • Materials Management • Purchasing • Purchase Order • Create

Enter the subcontract material purchasing information to display the screen shown in Figure 2.

Figure 2: Subcontract Purchase Order Line Item

You indicate that this material is to be procured by subcontracting by entering item category L (third column) when creating the purchase order line item. When you press Enter after entering a subcontract item category, two new icons appear in the Material Data tab of the item details as shown in Figure 3.

Figure 3: Components and Explode BOM in Material Data Tab

Click the Components icon to display a screen that allows you to enter the subcontract components that are sent to the vendor for assembly into finished goods. You can also create a BOM for the subcontract components that can automatically populate this screen.

You can monitor stocks issued to a subcontract vendor with Transaction ME2O. From this screen, you determine the status of subcontract stock. The components that are provided to the subcontractor are managed as stock provided to vendor. You can carry out a transfer posting from unrestricted stock to the stock of material provided to vendor. Components in a subcontract order that are consumed can only be debited from the stock of the material provided to the particular vendor.

You post the goods receipt for the end product with reference to the subcontract order item. At goods receipt, a consumption posting for the components is also made from the stock of material provided to vendor. For each goods receipt item, the system copies the components with their quantities as goods issue items. If the vendor (subcontractor) consumed a greater or smaller quantity than was planned in the purchase order, you can adjust the component quantity at goods receipt (GR).