Вы находитесь на странице: 1из 55

EHP4 for SAP ERP

6.0
June 2010
English

Subcontracting
Manufacturing with Down
Binning and Batch
Derivation (451)
Business Process Documentation

SAP AG
Dietmar-Hopp-Allee 16
69190 Walldorf
Germany

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Copyright
2010 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express
permission of SAP AG. The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of
other software vendors.
Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.
IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System
z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390,
OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6,
POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS,
HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner,
WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.
Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.
Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of
Adobe Systems Incorporated in the United States and/or other countries.
Oracle is a registered trademark of Oracle Corporation.
UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or
registered trademarks of Citrix Systems, Inc.
HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web
Consortium, Massachusetts Institute of Technology.
Java is a registered trademark of Sun Microsystems, Inc.
JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and
implemented by Netscape.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, Clear Enterprise, SAP BusinessObjects Explorer,
and other SAP products and services mentioned herein as well as their respective logos are trademarks or
registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web
Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of SAP France in the United States and in other
countries.
All other product and service names mentioned are the trademarks of their respective companies. Data
contained in this document serves informational purposes only. National product specifications may vary.
These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated
companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and
SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP
Group products and services are those that are set forth in the express warranty statements accompanying
such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

SAP AG

Page 2 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Icons
Icon

Meaning
Caution
Example
Note
Recommendation
Syntax
External Process
Business Process Alternative/Decision Choice

Typographic Conventions
Type Style

Description

Example text

Words or characters that appear on the screen. These include Field


names, screen titles, pushbuttons as well as menu names, paths and
options.
Cross-references to other documentation.

Example text

Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT

Names of elements in the system. These include report names,


program names, transaction codes, table names, and individual key
words of a programming language, when surrounded by body text, for
example, SELECT and INCLUDE.

Example text

Screen output. This includes file and directory names and their paths,
messages, source code, names of variables and parameters as well as
names of installation, upgrade and database tools.

EXAMPLE TEXT

Keys on the keyboard, for example, function keys (such as


ENTER key.

Example text

Exact user entry. These are words or characters that you enter in the
system exactly as they appear in the documentation.

<Example text>

Variable user entry. Pointed brackets indicate that you replace these
words and characters with appropriate entries.

SAP AG

F2)

or the

Page 3 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Contents
1

Purpose.................................................................................................................................... 6

Prerequisites............................................................................................................................. 7
2.1

Master Data and Organizational Data...................................................................................7

2.2

Business Conditions.............................................................................................................. 9

2.3

Roles..................................................................................................................................... 9

2.4

Preliminary Steps................................................................................................................ 10

2.4.1

Initial Requirement Situation........................................................................................10

Process Overview Table.......................................................................................................... 11

Process Steps......................................................................................................................... 15
4.1

Material Requirements Planning at Plant Level...................................................................15

4.2

Stock Posting...................................................................................................................... 16

4.2.1

Procurement of Stock Material.....................................................................................17

4.2.2

Initial Stock Posting (Optional).....................................................................................18

4.3

Assigning Purchase Requisition / Creating Purchase Order...............................................19

4.4

Approval of Purchase Orders.............................................................................................. 21

4.5

Creating Outbound Delivery Request via using Subcontracting Cockpit.............................22

4.6

Generating Transfer Order.................................................................................................. 24

4.7

Posting Goods Issue to Subcontractor Transfer Stock........................................................25

4.8

Posting Goods Receipt of Subcontractor Components.......................................................26

4.9

Receiving Goods from Subcontracting PO..........................................................................27

4.10

Production Order Processing..............................................................................................28

4.10.1

Creating Production Order........................................................................................... 28

4.10.2

Material Staging for Finished goods Production...........................................................30

4.10.3

Releasing Production Order for Finished goods Production.........................................32

4.10.4

Confirming Production for Finished Products...............................................................34

4.10.5

Posting Goods Receipt for Production Order...............................................................35

4.11

Down Binning Material........................................................................................................ 37

4.12

Invoice Receipt from Subcontracting PO.............................................................................39

4.13

Reviewing Invoice Receipt from Subcontracting PO...........................................................40

Follow-up Process.................................................................................................................. 41
5.1

G/L: Period-End Plant......................................................................................................... 41


Appendix................................................................................................................................. 41

6.1

Reversal of Process Steps.................................................................................................. 41

SAP AG

Page 4 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

6.2

Reporting............................................................................................................................. 44

6.3

Used Forms......................................................................................................................... 45

6.3.1

Procurement................................................................................................................. 45

6.3.2

Goods Movements....................................................................................................... 45

SAP AG

Page 5 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Subcontracting Manufacturing with Down Binning


and Batch Derivation
1

Purpose

Subcontract Manufacturing process for semiconductor involves the semiconductor design company
sending manufactured Die to a subcontract assembly and test vendor who assembles the finished
devices, tracks batch characteristics, and ships the inventory either back to the semiconductor
company or directly to the end-customer.
A subcontract purchase requisition is either generated via the Material Requirements Planning
(MRP) process or manually by a requestor. A buyer validates the accuracy of the purchase
requisition and converts it into a purchase order. The purchase order is subject to approval based on
predefined parameters before being issued to a vendor.
Specific lots or batches of Die are selected and issued to the subcontract purchase order. Batch
characteristics for both the component and semi finished goods batches are managed by the
subcontractor and the information is provided when the semi finished goods are delivered to the
semiconductor company. Based on the testing result, the finished goods with grade information are
received into stock, at the same time, the batch characteristics are also copied from the semifinished
goods to the finished goods. If the sales order comes in which the lower grade finished product is
required, and there is not enough stock to meet the customer requirement, down binning (the stock
transfer to the lower grade goods) occurs.
The consumption of the Die is recorded upon receipt of the finished device. The vendor sends the
invoice for the services provided which is paid during the normal payment cycle.
On goods delivery, the scenario focuses on the following activities:

Purchase order creation based on a scheduled purchase requisition created by last


MRP run

Issue specified Die batch to subcontract purchase order

Purchase order approval (if required)

Outbound delivery of components via subcontracting cockpit (ME2ON)Goods issue from


your plant into the transfer stock of the Subcontractor

Goods receipt of subcontractor components

On goods receipt, the scenario focuses on the following activities:

Goods receipt for purchase order delivered by subcontractor

Component reservations and consumption of component quantities as provision of


material

Transfer of component batch characteristics to semi finished goods batch

Production order creation based on a scheduled planned order created by last MRP run

Material staging for finished goods production

Releasing production order for finished goods production

Production confirmation for finished productions

SAP AG

Page 6 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Goods receipt for production order

Down Binning of Finished goods products ( via Material to material transfer)

Invoice receipt by line item

Invoice verification and validation of tax expenses

Outgoing payment

Prerequisites

2.1 Master Data and Organizational Data


Default Values
Essential master and organizational data was created in your ERP system during the
implementation phase, such as the data that reflects the organizational structure of your company
and master data that suits its operational focus, for example, master data for materials, vendors, and
customers.
The business process is enabled with this organization-specific master data, examples of which are
provided in the next section.

Additional Default Values


You can test the scenario with other SAP Best Practices default values that have the
same characteristics.
Check your SAP ECC system to find out which other material master data exists.

Using Your Own Master Data


You can also use customized values for any material or organizational data for which
you have created master data. For more information on how to create master data, see
the Master Data Procedures documentation.
Use the following master data in the process steps described in this document:

SAP AG

Page 7 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Master / Org. data Value

Master / Org. data details

Comments

Material

HT-F410-1

Device 1 Grade 1

Finished Good

HT-F410-2

Device 1 Grade 2

Finished Good

HT-F410-3

Device 1 Grade 3

Finished Good

HT-S21-2

Device 1

Semi finished Good

HT-S21-1

Die 1

Component of Semi
finished Good

Company Code

1000

1000

Plant

1000

Purchasing
Organization

1000

1000

Purchasing Group

100

100

Storage Location

1020

1030

1050

Warehouse

110

Shipping

Vendor

300007

07-

Bill of Material Structure


This overview shows the bill of material structures and the usage of each component if you have
activated all optional enhancements.
Material

Level Material Unit Characteristic of material


type

HT-F410-1 0

FERT

PC

Finished Good for MTS via downbinning with batch number and
derivation of batch characteristics

HT-S21-2

HALB

PC

Semi finished Good for MTS


processing with batch number

Material

Level Material Unit Characteristic of material


type

HT-F410-2 0

FERT

PC

Finished Good for MTS via downbinning with batch number and
derivation of batch characteristics

HT-S21-2

HALB

PC

Semi - finished Good for MTS


processing with batch number

SAP AG

Optional
Enhancements

Optional
Enhancements

Page 8 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Material

Level Material Unit Characteristic of material


type

Optional
Enhancements

HT-F410-3 0

FERT

PC

Finished Good for MTS via downbinning with batch number and
derivation of batch characteristics

HT-S21-2

HALB

PC

Semi finished Good for MTS


processing with batch number

Material

Level Material Unit Characteristic of material


type

Optional
Enhancements

HT-S21-2 0

HALB

PC

Semi finished Good for MTS


processing with batch number

HT-S21-1 1

HALB

PC

Internal production of subassembly


(MTS strategy

2.2 Business Conditions


The business process described in this Business Process Document is part of a bigger chain of
integrated business processes or scenarios. As a result, you must have completed the following
processes and fulfilled the following business conditions before you can start any activities in this
scenario:
Business condition

Scenario

You have completed all steps described in the Business


Process Document Prerequisite Process Steps (154). These
process steps include the step Roll MM Period to Current
Period. Perform this activity if the MM period in the system is
not set to the current period. This activity has to be done
once a month.

Prerequisite Process Steps


(154)

To run through this scenario, the subassembly materials


must be available in stock.

Procurement w/o QM (130)

run through the procurement w/o QM (130) process


or

create stock using transaction MIGO (for details see


chapter on Preliminary Steps).

SAP AG

Page 9 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

2.3 Roles
Use
The following roles must have been installed to test this scenario in the SAP NetWeaver Business
Client (NWBC). The roles in this Business Process Documentation must be assigned to the user or
users testing this scenario. You do not need these roles if you are using the standard SAP GUI, and
not the NWBC interface.

Prerequisites
The business roles have been assigned to the user who is testing this scenario.
Business role

Technical name

Process step

Employee
(Professional
User)

SAP_NBPR_EMPLOYEE-S

Assignment of this role is necessary for


basic functionality.

Production
Planner

SAP_NBPR_PRODPLANNER-S

MD04 Check Requirement Situation,

Purchasing
Manager

SAP_NBPR_PURCHASER-M

ME28 Approve Purchase Orders

Purchaser

SAP_NBPR_PURCHASER-S

ME21N Create Purchase Order,

MDBT Execute MRP

ME57 Assign Purchase Requisition,


ME9F
Warehouse
Clerk

SAP_NBPR_WAREHOUSECLER
K-S

LT03 Create Transfer Order,


LT12 Confirm Transfer Order,
VL02N Create Outbound Delivery,
ME2O Stock Monitoring for Vendor,
MIGO Post Goods Receipt
MIGO Transfer Posting

Purchaser
(DIFM)

SAP_NBPR_PURCHASER_DIFM- ME2ON Subcontracting Cockpit


S

Shop Floor
Specialist

SAP_NBPR_SHOPFLOOR-S

Accounts
Payable
Accountant

SAP_NBPR_AP_CLERK-S

SAP AG

MF60 Material Staging


CO11N Enter Time Ticket For
Production Order
MIRO, MIR5 Invoice Verification

Page 10 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

2.4 Preliminary Steps


2.4.1

Initial Requirement Situation

Use
The MRP run only creates purchase requisitions if the demand is greater than the available quantity.
You can check the requirement situation in the Stock/Requirement List. If necessary, you can reduce
the quantity of unrestricted use by posting a goods issue.

Procedure
1. Access the activity using one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Materials Management Material Requirements


Planning (MRP) MRP Evaluations Stock/Requirements List

Transaction code

MD04

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Production Planner
SAP_NBPR_PRODPLANNER-S

Business role menu

Production Evaluation Reports Display


Stock/Requirements Situation

2. On the Stock / Requirement List: Initial Screen, make the following entries
Field name

Description

User action and values

Comment

Material

HT-F410-1

HT-F410-2, HT-F410-3 may also


be used to drive demand for HTS21-2

Plant

1 (1000)

3. In the view Stock/Requirement List, you can see the MRP elements.

If there is no net demand for this material, you can create demand by run scenario
Sales Order Processing: Sale from Stock (109).

To execute this activity, process the following steps using the master data from this
document (see also table below):
Steps to process from scenario Sales Order Processing: Sale from Stock - 109
Sales Order Entry

SAP AG

Page 11 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Master data

Value

Order type

OR

Sold to party

100003

Ship to party

100003

PO number

Enter a customer purchase order


number as reference.

Material Number

HT-F410-1

Quantity

100

SAP AG

Comment

Die 1

Page 12 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

4. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Process Overview Table

SAP AG

Page 13 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Process step

External
process
reference

Business
condition

Business
role

Transactio
n code

Expected
results

Material
Requirements
Planning at
Plant Level

Production
Planner

MD02

The system
generates
planned
orders,
purchase
requisitions,
and
exception
messages.
To generate
a report for
this activity
use
Transaction
code MD06
(Logistics
Production
MRP
Evaluations

External
Procurement

Refer to
Procurement
to Stock: 130
This activity
adds initial
stock to the
components
required to be
sent to the
vendor

Warehouse
Clerk

MIGO

You have
posted initial
stock

This activity
assigns a
purchase
requisition for
planned
subcontractin
g and creates
a purchase
order

Purchaser

ME57

Purchase
Order is
Created

Initial Stock
Posting
(optional)

Assign
Purchase
Requisition
and Create
Purchase
Order

SAP AG

Page 14 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Process step

External
process
reference

Business
condition

Business
role

Transactio
n code

Expected
results

Approval of
Purchase
Orders

All purchase
orders that
require
release by
Release
Authorized
Persons are
listed and
need to be
approved.

Purchasing
Manager

ME28

Purchase
orders
approved

ME2ON

A delivery
pick list for
shipping is
generated

Subcontracting
Cockpit

Purchaser
(DIFM)

Pick
Confirmation

Delivery has
been created

Warehouse
Clerk

VL02N

Picking has
been done

Generate
Transfer
Order(Optional
)

Picking has
been done

Warehouse
Clerk

LT03

The transfer
order is
generated

Confirm
Transfer
Order(Optional
)

Transfer has
been done

Warehouse
Clerk

LT12

Transfer
order has
been created

Post Goods
Issue to
Subcontractor
Transfer stock

Delivery is
picked and
transfer is
confirmed

Warehouse
Clerk

VL02N

Goods Issue
has been
posted to SC
transfer stock

Post Goods
Receipt of
Subcontractor
Components

Component
are received
by
subcontractor

Warehouse
Clerk

MIGO

GR for SC
components
has been
posted

Receive
finished
product

Warehouse
Clerk

MIGO

the goods
receipt for
the subcontract
purchase
order is
posted

(Optional)

Receive
Goods from
Subcontracting
Purchase
Order

SAP AG

Page 15 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Process step

Business
condition

Business
role

Transactio
n code

Expected
results

Create
Production
Order for
Testing

Plannes
orders have
been created
by the system

Production
Planner

MD04 /
CO41

Planned
order for InHouse Parts
has been
converted to
production
order

Material
Staging for
Production

Production
order has
been created

Shop Floor
Specialist

MF60

All materials,
needed for
the
production
order were
moved from
various
storage
locations to
the
production
storage
location

Releasing
Production
Order for
Production

Materials
have been
staged for
production
order

Production
Planner

CO05N

Production
order has
been
released

Confirming
Production for
Production

Production
Order is
released

Shop Floor
Specialist

CO11N

Production
order for
Finished
Products is
confirmed.

Posting Goods
Receipt for
Production
Order

Order has
been fully
confirmed

Warehouse
Clerk

MIGO

The goods
receipt for
the
production
order is
posted

Down Bin
Material

Goods receipt
of production
order has
been
executed

Warehouse
Clerk

MIGO

Stock
transfer from
material HTF410-1 to
materials HTF410-2 and
HT- F410-3

SAP AG

External
process
reference

Page 16 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Process step

External
process
reference

Maintain
Finished
Goods Batch
Characteristic
s

Batch
Management
with
Enhanced
Characteristic
s (453)

Invoice
Receipt from
Subcontracting
PO

Review
Invoice
Receipt from
Subcontracting
PO

Business
condition

Business
role

Transactio
n code

Expected
results

MSC2N

Batch
characteristic
values are
maintained

Goods
Receipt has
been posted

Accounts
Payable
Accountant

MIRO

Invoice
document
and
accounting
document

Invoice
receipt has
been posted

Accounts
Payable
Accountant

MIR5

Invoice
documents
reviewed and
GL-Accounts
validated

Process Steps

4.1 Material Requirements Planning at Plant Level


Use
The aim of material requirements planning is to tailor available capacities and receipts on time to suit
requirements quantities. You can use MRP or consumption-based planning for this purpose. Singleitem multi-level requirement planning is carried out for plant 1000.

Prerequisites
The finished product Device 1 Grade 1 (HT-F410-1) is planned at plant level. There is now a
requirement for the material Device 1 Grade 1 (HT-F410-1) in plant 1000.

Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Production MRP Planning MultiLevel SingleItem Planning

Transaction code

MD02

SAP AG

Page 17 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Production Planner
(SAP_NBPR_PRODPLANNER-S)

Business role menu

Production MRP Planning MRP-Single-Item, Multi-Level

2. On the Single-Item, Multi-Level screen, make the following entries:


Field name

Description

User action and values

Comment

Material

HT-F410-1

Device 1 Grade 1

Plant

1000

Scope of planning
Product group
MRP control parameters
Processing key

NETCH

Create purchase req.

1 (Purchase requisitions)

Delivery schedules

3 (Schedule lines)

Create MRP list

1 (MRP list)

Planning mode

3 (Delete and re-create


planning data)

Scheduling

1 (Determination of basic
dates for planned order)

Process control parameters


Also plan unchanged
components

(remove indicator)

Display results before they


are saved

(remove indicator)

Display material list

(remove indicator)

Simulation mode

(remove indicator)

SAP AG

Page 18 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

3. Confirm your entries with Enter.


4. Confirm the information message: Please check input parameters.
5. Go back twice to access the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
The system generates planned orders, purchase requisitions, and exception messages. To generate
a report for this activity, use the Transaction code MD06 (Logistics Production MRP
Planning Evaluations MRP List - Collective Display) with plant 1000 and MRP controller 100.

4.2 Stock Posting


Use
This activity is used to add initial stock to the components required to be sent to the vendor. The
scenario only runs, if there is not enough stock for the material to be provided to the vendor.

4.2.1

Procurement of Stock Material

In the real business case, the materials are usually purchased from external vendors, which can be
covered by the standard purchasing processing.

You have the option either to post initial stock directly to the storage location or
reference to the sub process listed below.

Procurement without QM (130)


Use
In this scenario, we have several materials (raw or semi-finished) to be procured.

Procedure
To execute this activity, process the following steps using the master data from this document (see
also table below):

SAP AG

Page 19 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Steps to process from scenario Procurement to Stock 130


Display List of Purchase Requisitions to be assigned
Evaluation of the Stock/Requirement List
Convert Assigned Requisitions to Purchase Orders
Approval of Purchase Order
Print Purchase Order
Receive Goods from Vendor to the Purchase Order

Refer to characteristics value table below for characteristics value assignment


Master data

Value

Comments

Material

HT-S21-1

Die 1

Characteristics values assignment for materials:


Characteristics

Material

Date Code

For example: Z0308AOC

Fab

For example: VNCR

Wafer ID

12 Digit Alpha-Numeric number of your choice (Example:


IT941UL1CGG0)

4.2.2

Initial Stock Posting (Optional)

Procedure
1. Access the activity using one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Materials Management Inventory Management


Goods Movement Goods Movement (MIGO)

Transaction code

MIGO

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Warehouse Clerk
( SAP_NBPR_WAREHOUSECLERK-S)

Business role menu

SAP AG

Warehouse Management Consumption and Transfers Other


Goods Movement

Page 20 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

2. On the Initial Screen, make the following entries:


Field name

Description

User action and values

Comment

Business
Transaction

A01 Goods Receipt

Select A01 Goods


Receipt from the 1st
Drop-Down Menu

Business
Transaction

R10 Other

Select R10 Other from


the 2nd Drop-Down Menu

Movement Type

561

561 Receipt per initial


entry of stock balances
into unr.-use

3. Choose Enter.
4. On the Goods Receipt Other screen: Material tab page, make the following entry and choose
Enter:
Field name

Description

User action and values

Comment

HT-S21-1

Material

5. On the Goods Receipt Other screen: Quantity tab page, make the following entry and choose
Enter:
Field name

Description

User action and values

Comment

1000

Qty in Unit of
Entry

6. On the Goods Receipt Other screen: Where tab page, make the following entries and choose
Enter:
Field name

Description

User action and values

Plant

1000

Storage Location

1050

Comment
(

7. Make sure the indicator Item OK is selected.


8. Choose Check on the top of the screen, then the batch is assigned to the material, and choose
Enter.
9. On the Goods Receipt Other screen: Batch tab page, choose Classification make the following
entry and choose Back:
Field name

Description

User action and values

YH_DATE_CODE

Date Code

For example: Z0308AOC

YH_FAB

Fab

For example: VNCR

YH_WAFER

Wafer ID

12 Digit Alpha-Numeric
number of your choice
(Example: IT941UL1CGG0)

SAP AG

Comment

Page 21 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

10. Choose Post.


11. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
You have posted initial stock.
Financial postings:
Posting Key

Account

Description

Amount (example)

Currency

89

14050101

Semi finished goods

242,710.00

CNY

91

99999999

take over clearing

242,710.00-

CNY

4.3 Assigning Purchase Requisition / Creating Purchase


Order
Use
In this activity, a purchase requisition for planned subcontracting is assigned and a corresponding
purchase order is created.

Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Material Management Purchasing Purchase


Requisition Follow on functions Assign and Process

Transaction code

ME57

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Purchaser
(SAP_NBPR_PURCHASER-S)

Business role menu

SAP AG

Purchasing Purchase Requisition Assign and Process


Purchase Requisition

Page 22 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

2. On the Assign and Process Purchase Requisitions screen, enter the following values:
Field name

Description

User action and values

Purchasing Group

100

Material

HT-S21-2

Scope of list

ALV

Plant

1000

Item Category

L (Subcontracting)

SAP AG

Comment

Page 23 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

3. Choose Execute.
4. Select the requisition lines from the Item Overview section on the screen.
5. Choose Edit Items.
6. Select the requisition lines from the Item Overview section on the screen.
7. Choose Assign Source of Supply.

A yellow triangle is indicated for purchase requisitions where the system could not
assign a clear source of supply. In this case, select the requisition Open item detail. In
the Assign Source of Supply tab you obtain a list of source. Select supplier 300007 and
choose Assigned source. Ensure that the supplier has assigned a customer number in
the master record (view control).
8. Select the line of the purchase requisition already assigned with a source from the Item
Overview section.
9. To save the requisition changes, choose Save.
10. On the Assignments sub-page, select the checkbox of the source, then choose Create purchase
order (it is a red and white button in the upper left).
11. On the Create Purchase Order screen, from the Document Overview section (on the left), select
the requisition number from the list.
12. To extract the requisition information into the Purchase Order, choose Adopt.
13. On the PO screen, select the item with material HT-S21-2 and select the Material Data tab.
14. On the Material Data tab, select the button Explode BOM to see the components.
15. Select the component HT-S21-1 and assign a component batch by choosing the drop-down and
choosing a batch.
16. Go back to Material Data tab, and choose Create batch on the left hand side bottom of the
screen. Confirm the Automatic batch number allocation dialog box, with Yes. This creates a
batch for the Semi finished product HT-S21-2.
17. Choose Save and record the PO number: ____________________________.
18. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
The system generates a subcontract PO to vendor.

4.4 Approval of Purchase Orders

SAP AG

Page 24 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Use
All the purchase orders that require release by an authorized person are listed and need to be
approved.

Only POs with a value higher than 500 CNY can be released in this transaction.

Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Material Management Purchasing Purchase


Order Release Collective Release

Transaction code

ME28

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Purchasing Manager
(SAP_NBPR_PURCHASER-M)

Business role menu

Purchasing Approval Purchasing Documents Release


Purchase Order - List

2. On Release (Approve) Purchasing Documents screen, enter the following values:


Field name

Description

User action and values

Release Code

01

List with items

SAP AG

Comment
Check the checkbox

Page 25 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

You need a release code for PO when the document type is NB or FO and the purchase
group is 100, 101, 102, 103 and the value is greater than CNY500 CNY.
3. Choose Execute.
4. A list of all POs requiring release by this release code displays.
5. Select the PO line that you want to release.
6. Choose Release and then choose Save.
7. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
The purchase order is now released. But the purchase order may need to be released by multiple
people depending on its value (customizing). Once the last person has released the purchase order,
the Purchasing Administrator/planner can output (print, fax, EDI) the purchase order as necessary.

4.5 Creating Outbound Delivery Request via using


Subcontracting Cockpit
Use
This activity creates an outbound delivery request for components to be shipped to the vendor.
The outbound delivery will be generated by using the subcontracting cockpit (Transaction code
ME2ON).
You can use the Subcontracting Cockpit to maintain your subcontracting process centrally. The userfriendly interface enables you to quickly obtain an overview of the current status of your
subcontracting delivery processes. You can directly check which of your components are currently in
the subcontracting stock.
When you create a subcontracting order, you can change the shipping point for the outbound
delivery, or you can change the batch number. This makes your shipping activities more flexible.
In the external processing scenario, you can display additional information for each purchase order
item, for example, the production order, the number of the external operation, and the operation text.
It is also possible to create targeted outbound deliveries for a specified purchase order item. The
outbound delivery then appears in the purchase order history of the respective item.
The movement type 30A enables you to choose whether you use the two-step procedure (30A) or
you send your components directly to the subcontractor (541).

Procedure
1. Access the transaction choosing one of the following navigation options:

SAP AG

Page 26 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Option 1: SAP Graphical User Interface (SAP GUI)


SAP ECC menu

Logistics Material Management Purchasing Purchase


Order Reporting Subcontracting Cockpit

Transaction code

ME2ON

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Purchaser (DIFM)
(SAP_NBPR_PURCHASER_DIFM-S)

Business role menu

Purchasing Purchase Order Subcontracting Cockpit

2. On the Subcontracting Cockpit screen, enter the following values:


Field name

User action and values

Comment

Vendor

300007

Sub Contract Services

Plant

1000

SAP AG

Description

Page 27 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

3. Choose Execute.
4. Choose Expand All (Shift + F7) to expand the list items.
5. Mark the item lines for the required materials HT-S21-1 referring to the subcontracting PO
number created before and choose Create Delivery.

If you dont select the PO items but only the materials, the outbound delivery is created
without reference to the PO, the outbound delivery only appears in the purchase order
history of the respective item. If the delivery is created with reference to the PO item, at
the same time you can see the PO item number in the details of the delivery item.
6. In the Create delivery for Subcontracting Purchase Orders dialog box, enter the movement type
30A (instead of 541) to post the goods issue in a two step stock transfer. By using this
movement type, the goods issue of the delivery will be posted in the Subcontractor transfer stock
and not directly in the Subcontractor stock.

The default value in the subcontracting cockpit ME2ON regarding the movement type is
541 and must be overwritten manually, if you want to use the movement type 30A
regularly. At the moment, no customizing setting is available to change the default
movement type. To set the default movement type to value 30A, a possible workaround
is to implement an implicit enhancement for method CREATE_DATA. This method is
part of class LCL_DELIVERY in function group MMPUR_SUBCON (OO-ABAP
knowledge is required!)
7. Enter the storage location 1050 in which you have to post the stock for the components. And in
the Batch field, verify the same batch number you choose when the Purchase Order was
created.
8. Choose Create Document.
9. In the Messages window, the system issues a message: Delivery XXXXXXXX has been saved.
Confirm with Continue (Enter). Make a note of the delivery document number: __________
10. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
The system has generated the outbound delivery for the subcontracting components.

You can display the delivery created in the previous step also via the Subcontracting
Cockpit (see line item Deliveries with open GI) or choose transaction code VL03N.
Check the OverallWMStatus field in the Picking tab page. If WM Trnsf order reqd
appears, it means picking process has to be done by transfer orders via Warehouse
Management System.

SAP AG

Page 28 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

4.6 Generating Transfer Order


Use
This activity generates the transfer order.
This step should be skipped if the transfer order is generated automatically by the system. If a
transfer order is not created, you can use this step to create one.

Procedure
1. Access the transaction choosing one of the following navigation options
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Logistics Execution Outbound Process


Goods Issue for Outbound Delivery Picking Create
Transfer Order Single Document

Transaction code

LT03

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Warehouse Clerk
(SAP_NBPR_WAREHOUSECLERK-S)

Business role menu

Warehouse Management Consumption and Transfers


Create TO for Delivery

2. On the Create Transfer Order for Delivery Note: Initial Screen, make the following entries and
choose Enter:
Field name

User action and values

Comment

Warehouse Number

110

Shipping

Delivery

Delivery Number from last step

SAP AG

Description

Page 29 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

3. Choose Generate TO Item and then choose Save.


4. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
The transfer order is generated and automatically confirmed in the background.

4.7 Posting Goods Issue to Subcontractor Transfer Stock


Use
This activity posts the issue of goods from your plant into the transfer stock of the Subcontractor. The
components are on the way to the Subcontractor and the stock of the components is not yet in
unrestricted use of the Subcontractor

Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Logistics Execution Outbound Process


Goods issue for Outbound Delivery Outbound Delivery
Change Single Document

Transaction code

VL02N

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Warehouse Clerk
(SAP_NBPR_WAREHOUSECLERK-S)

Business role menu

SAP AG

Warehouse Management Shipping Outbound Delivery


Change Delivery

Page 30 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

2. On the Change Outbound Delivery screen, enter the delivery document number and choose
Post Goods Issue.
3. Check the transfer posting for the components via the Subcontracting Cockpit (Transaction
ME2ON). Call Stock overview ( Stock provided to vendor Stock type ST Stock for SC in the
sub) for each component delivered.
4. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
The components are posted to the Subcontractor transfer stock.

4.8 Posting Goods Receipt of Subcontractor Components


Use
The components have leaved your plant in the previous step and are now available for the
Subcontractor. The Subcontractor indicates the receipt of the components. The receipt has to be
posted in your system.

Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Materials Management Purchasing


Purchase Order Follow on functions Goods Receipt

Transaction code

MIGO

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Warehouse Clerk
(SAP_NBPR_WAREHOUSECLERK-S)

Business role menu

SAP AG

Warehouse Management Consumption and Transfer


Other Goods Movement

Page 31 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

2. Select A08 Transfer Posting and R10 Others from the two list boxes on top of the screen.
3. Make sure that the movement type is 30C with Special stock O (ST Put Away to SC).
4. Choose the Transfer Posting tab page and make the following entries:
Field name

Description

User action and values

Material

HT-S21-1

Plant

1000

Vendor

300007

Batch

The same batch number you


chose when the Purchase
Order or Outbound Delivery
was created.

Quantity

The delivery quantity in


outbound delivery item

Comment

5. On the bottom of the screen, select the Item OK checkbox and choose Post.
6. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
Goods receipt of the subcontracting components is posted into unrestricted use Stock under Stock
Provided to Vendor.

4.9 Receiving Goods from Subcontracting PO


Use
The vendor delivers the manufactured products and GR is to be posted for them in the system.

Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Materials Management Purchasing Purchase


Order Follow on functions Goods Receipt

Transaction code

MIGO

SAP AG

Page 32 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Warehouse Clerk
(SAP_NBPR_WAREHOUSECLERK-S)
Warehouse Management Consumption and Transfer Other
Goods Movement

Business role menu

2. Select A01 Goods Receipt and R01 Purchase Order from the two list boxes on top of the
screen.
3. On the Goods Receipt Purchase Order - <Username> screen, enter the PO number and choose
Enter.
4. Select the checkbox in the header data to print the material document via Output Control.
Choose Collective Slip.
5. In field delivery note, enter the delivery note number.
6. Make sure that the movement type is 101.
7. Choose Open Detail Data.
8. Confirm that storage location is 1050 on the Where tab.
9. During goods receipt, check the quantities for the finished product on the quantity tab.
10. Choose Classification in the Batch tab and enter the following values for the batch
characteristics.
Field name

Description

User action and values

YH_DATE_CODE

Date code

Example - Z0308AOC

YH_FAB

Fab

Example - VNCR

YH_WAFER

Wafer ID

Example - IT941UL1CGG0

SAP AG

Comment

Page 33 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

11. Choose Back.


12. On the bottom of the screen, select the Item OK checkbox and choose Post. Make a note of the
material document number: __________
13. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
Goods receipt is posted.
Financial postings:
Posting
Key

Account

Description

Materials

Amount
(example)

Currency

89

14050101

Semi finished goods

HT-S21-2

25,271.00

CNY

96

14010101

GR/IR clearing accou

HT-S21-2

1,000.00-

CNY

91

14080101

Subcontract goods

HT-S21-2

252,271.00-

CNY

86

14080101

Subcontract goods

HT-S21-2

1,000.00

CNY

99

14050101

Semi finished goods

HT-S21-1

24271.00-

CNY

81

14080101

Subcontract goods

HT-S21-1

24,271.00

CNY

4.10 Production Order Processing


4.10.1

Creating Production Order

Use
The daily MRP run creates planned orders for parts that are to be produced internally. When the
planned opening date is reached, these are converted to production orders.

Prerequisites
The MRP run has generated a planned order for material Device 1 Grade 1 (HT-F410-1).

Procedure
Option 1: SAP Graphical User Interface (SAP GUI)
1. Access the activity using one of the following navigation options:
SAP ECC menu

Logistics Production MRP Evaluations


Stock/Requirements List

Transaction code

MD04

SAP AG

Page 34 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

2. On the Stock/Requirement List: Initial Screen, enter the following data:


Field name

Description

User action and values

Comment

Material

HT-F410-1

Device 1 Grade 1

Plant

1000

3. Confirm your entries with Enter.


4. Select the MRP element PldOrd and choose Add. data for element, or double-click the line.

The planned order contains 3 dates: The order finish and order start dates, and the
planned opening date. If the planned opening date has been reached, the planned order
is converted to a production order. The planned opening date is determined through the
scheduling margin key of the material master.
5. Choose Convert planned order to production order.
6. Ignore the message: Order has missing parts (see log) by choosing Continue (Enter).
7. You are now in the production order. A routing and BOM are exploded by the system with the
production order type YHT1. You have to check the settlement rule determined. To do this, from
the menu choose (NWBC: More ) Header Settlement rule. You see that the production
order is settled to material Device 1 Grade 1 (HT-F410-1).
8. Choose Back to return to the Production order Create: Header screen.
9. Save the production order and make a note of the production order number ______________.
10. You are now back On the Stock/Requirements List as of <oclock> Hrs screen. Choose Refresh
(F6). Instead of the entry PldOrd, the entry PrdOrd (production order) you have just created is
now displayed in the MRP element column.
11. Choose Exit to return to the SAP Easy Access screen (SAP GUI).
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
1. Access the activity using one of the following navigation options:
Business role

Production Planner
(SAP_NBPR_PRODPLANNER-S)

Business role menu

Production Evaluation Reports Display Stock/Requirements


Situation

2. On the All Planned Orders tab, enter the following search criteria:
Field name

User action and values

Comment

Material

HT-F410-1

Device 1 Grade 1

Planning Plant

1000

SAP AG

Description

Page 35 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

3. Choose Apply.

The planned orders for your production (testing) were displayed in the standard view.
4. Select the planned order and choose Convert to Production Order.
5. Ignore the message: Order has missing parts (see log) with choose Continue (Enter).

In the status line the message Planned Order: 000000XXXX Converted to Production
Order: 00000XXXXXXX is displayed.
6. Make a note of the production order number ______________.
7. Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
A production order has been created.

4.10.2

Material Staging for Finished goods Production

Use
This activity pulls the materials required for the Production Order from various storage locations to
the production storage location.

The materials required are located in the available stock of the supplying storage
location.
This activity pulls the materials required for the Production Order from various storage
locations, for example Stores (1050) to the production storage location Shop Floor
(1020).
On the screen Enter Other Goods Receipt: new items enter the required materials and
the quantities. Save your entries. Enter the sales order number / item if you are using
materials for sales order dependent requirements.
In case that there is enough material in the production storage location Shop Floor
(1020) or if the requirement date is not yet reached, material staging is not possible.

Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Production Production Control Goods Movements


Material Staging Pull List

Transaction code

MF60

SAP AG

Page 36 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Shop Floor Specialist


(SAP_NBPR_SHOPFLOOR-S)

Business role menu

Shop Floor Discrete Goods Movement Material Staging

2. On the Material Staging for Planned Orders screen, mark staging type SLoc Level.
3. Make the following entries:
Field name

Description

User action and values

Plant

1000

Selection Horizon for


Reqmts

<Enter the Date which is


one month later>

Comment

4. Choose the Production/process orders tab page, and make the following entries:
Field name

User action and values

Comment

MRP Controller

<MRP controller>

Optional

Order

Production Order Number


from last step

Optional

Selection period for


reqmts.

SAP AG

Description

Leave blank if
necessary

Page 37 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

5. Choose Execute.
6. On the next screen, choose Select all (at the bottom of the screen).
7. Choose Create Replenish. Proposals.
8. At the top of the screen, choose Replenishment Elements.
9. For each replenishment element, enter a storage location in field RepLoc (Replenishment
storage location that is, 1050).

The Replenishment storage location is the storage location for external procurement as
specified in the material master MRP2 view. This should be the same storage location
used on the Purchase Order.
10. At the bottom of the screen, choose Select all.
11. Choose Batch/Stock Determination, then on the Batch Determination MM: Select Batches
screen, choose Copy until all batch determination entries are copied.
12. At the bottom of the screen, choose Select all.
13. Choose Stage.
14. Choose Save.
15. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
The system transfers the materials (material document) from the component storage location to the
manufacturing storage location. To view a pick list, use transaction code CO27.

4.10.3

Releasing Production Order for Finished goods


Production

Use
Release at order header level releases the order and all its operations. The order and the operations
receive the status REL (released). You can release a production order in create and change modes.

Prerequisites
The production order created by the MRP controller has been assigned a release date in
accordance with the scheduling margin key. The production scheduler selects all the created
production orders with a release date and releases all relevant production orders by means of mass
processing.

Procedure
SAP AG

Page 38 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

1. Access the activity using one of the following navigation options:


Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Production Capacity Planning Requirements


Production Order Control Collective Release

Transaction code

CO05N

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Production Planner
(SAP_NBPR_PRODPLANNER-S)

Business role menu

Production Shopfloor Control Production Order Release


Production Orders

2. On the Release Production Orders screen, enter the following data:


Field name

Description

List

User action and values

Comment

Order Headers

Selection
Material

HT-F410-1

Order type

YHT1

Device 1 Grade 1

Select. at operation level


Plant

1000

Sys. Status

CRTD

SAP AG

Page 39 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

3. On the Mass processing -Release tab page, in the Function Parameters area, select Order
release.
4. Confirm your entries with Enter and choose Execute (F8) to execute the report.
5. Make a note of the total order quantity ________________________.
6. Choose the production orders and choose Mass Processing (Ctrl + F8) Execute (F8) to
execute Mass processing.
7. The system status of the order has changed from CRTD (created) to REL (released).
8. Select your production order and choose Change Object.
9. Choose Operation Overview (F5).
10. Choose Select All, followed by Op. details.
11. Make a note of the confirmation number (Confirmation) for each operation.
Confirmation numbers: ____.
12. Choose Back to return to the Production order Change: Header screen.
13. Choose Component Overview (F6).
14. Select the item for component HT-S21-2 and choose button Batch determ. at the bottom of the
screen.
15. On the Batch Determination CO: Select Batches screen, choose Copy (F5) until all the batch
determination entries are copied.
16. Material availability check is carried out automatically during order release. To carry out a
material availability check manually, you can choose Check Material Availability. If there are no
missing components the status changes to MACM Material Committed.

The availability check in Shop Floor Control checks whether the components required
for a production order are available. The checking control can be automatically
performed during order creation or during order release.
17. Choose Save.
18. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
The production order has been released.

4.10.4

Confirming Production for Finished Products

Use
SAP AG

Page 40 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

The confirmation documents the processing status of orders, operations, sub-operations, and
individual capacities. It is an instrument for controlling orders. Here you have to confirm the
operations of the production order for Finished Product Device 1 Grade 1 (HT-F410-1). When you
confirm the last operation, the system generates a goods movement document for Device 1 (HTS21-2) to post goods into the storage location Shop Floor (1020) in the plant 1000.

Procedure
1. Access the activity using one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Production Shop Floor Control Confirmation


Enter For Operation Time ticket

Transaction code

CO11N

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Shop Floor Specialist


(SAP_NBPR_SHOPFLOOR-S)

Business role menu

Shop Floor Discrete Confirmation Enter Time Ticket For


Production Order

2. On the Enter Time Ticket for Production Order screen, make the following entries:
Field name

User action and values

Comment

Confirmation

The confirmation number


you noted earlier for
operation 0010.

This is printed on the shop floor


papers in the standard process.
(Possibly encoded with a bar
code)

Confirm. type

X Final confirmation

SAP AG

Description

Page 41 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

3. Confirm your entries with Enter.


4. In the Yield field, enter the amount you want to confirm.
5. In the To Be Confirmed - Labor field, enter a value (for example, 10H) for the labor time and
confirm with Enter.
6. Choose Goods movements.
The system shows you an overview table of all materials for which the withdrawing is done
automatically with the confirmation of the operation.

The material HT-S21-2 is set for backflush (in material master) so that the withdrawing is
done automatically after you confirm the operation.
7. Choose Save.
8. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
The production order has been confirmed.

4.10.5

Posting Goods Receipt for Production Order

Use
The purpose of this activity is to post the goods receipt for the production order.

Prerequisites
The final confirmation of production for Finished Products has been done.

Procedure
Option 1: SAP Graphical User Interface (SAP GUI)
1. Access the activity using one of the following navigation options:
SAP ECC menu

Logistics Materials Management Inventory Management


Goods Movement Goods Issue (MIGO)

Transaction code

MIGO

SAP AG

Page 42 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

2. On the Initial Screen, make the following entries:


Field name

Description

User action and values

Comment

A01 Goods Receipt

1st top-left frame

R08 Order

2nd top-left frame

Order

The production order number you


noted before

Document Date

default

Posting Date

default

3. Choose Enter.
4. Choose the Quantity tab page and correct the quantity you confirmed before.
5. Choose the Where tab page and verify the storage location Shipping (1030).
6. Choose the Item OK indicator.
7. Choose Check. The system displays a warning message that Creating batch xxxxxxxxx.
8. Choose Enter and go to Batch tab.
9. On the Batch tab, choose Classification and on the Classification screen, check whether the
characteristics are copied from the material HT-S21-2 batch, used in the production order, and
select characteristic value HIGH for Speed Grade Characteristic.

You can change the Characteristics if desired and input the new characteristics at this
time (for example, Date Code may be changed according to the production order date of
the material HT-F410-1).
10. Choose Back.
11. Choose Post. The system displays the message: Material document 500xxxxxxx posted.
12. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
1. Access the activity using one of the following navigation options:
Business role

Warehouse Clerk
(SAP_NBPR_WAREHOUSECLERK-S)

Business role menu

SAP AG

Warehouse Management Receiving Production Order


Goods Receipt for Production Order

Page 43 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

2. On the Goods Receipt for Order: Initial Screen, make the following entries:
Field name

Description

User action and values

Comment

Document date

default

Posting date

default

Movement Type

101

Order

The production order number you


noted before

Plant

1000

Stro. Location

1030

Goods receipt for


order into warehouse

3. Choose Enter.
4. On the Goods Receipt for Order: Selection Screen XXXX/XXXX, choose the Item tab and
correct the quantity you confirmed before.
5. Choose Adopt + Details (F6) and then choose Enter. The system displays a warning message
that the Batch has been created for material HT-F410-1.
6. Choose Yes and go to Goods Receipt for Order: Selection Screen XXXX/XXXX screen.
7. Select a item line and then choose Choose (F2), and go to Goods Receipt for Order: details
XXXX/XXXX screen, choose More Goto Clasify Batch. On the Goods Receipt for Order:
Classification screen, check whether the characteristics are copied from the material HT-S21-2
batch, used in the production order, and select Characteristic Value: HIGH for Characteristic
Speed Grade.

You can change the Characteristics if desired and input the new characteristics at this
time (for example, Date Code may be changed according to the production order date of
the material HT-F410-1).
8. Choose Back and Save.
9. Choose Back to return to t return to SAP Home (SAP NetWeaver Business Client).

Result
Goods receipt for production order of Finished Products has been generated.
Financial postings:
Posting
Key

Account

Description

Materials

Amount
(example)

Currency

89

14050201

Finished goods

HT-F410-1

27,336.00

CNY

91

59010101

Factory output-GR

HT-F410-1

27,336.00-

CNY

SAP AG

Page 44 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

4.11 Down Binning Material


Use
If the determination is made to deliver higher grade products for the coming sales order in which low
grade product is required, down binning is carried out to transfer the product (HT-F410-1) to the
product (HT-F410-2 or HT-F410-3) according to the requirement of speed grade. This process is
carried out by doing Transfer Posting (Material to material transfer) in the system.

Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Materials Management Purchasing Purchase


Order Follow on functions Goods Receipt

Transaction code

MIGO

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Warehouse Clerk
( SAP_NBPR_WAREHOUSECLERK-S)

Business role menu

Warehouse Management Consumption and Transfers Other


Goods Movements

2. Select A08 Transfer Posting and R10 Other from the two list boxes on top of the screen.
3. In the Movement type field on the top right of the screen, select the movement type 309
(Transfer Posting material to material) from the drop-down list and choose Enter.
4. On the Transfer Posting tab, enter the values in the From and Destination fields as follows:
From:

Destination:

Material

HT-F410-1

Material

HT-F410-2 or HTF410-3

Plant

1000

Plant

1000

Storage Loc

1030

Storage Loc

1030

5. Choose Enter and make the following entries:


From:

Destination:

Batch

Enter the batch


number generated in
step 4.10.5

Unit of entry

Enter the required


amount to be
transferred to receiving
material. (i.e. 20)

SAP AG

Batch

System copies the


same batch number
as of material HTF410-1

Page 45 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

6. Choose Enter.

The Batch Characteristics are copied from the sender material to the receiver material
automatically.
Change the Speed Grade characteristic value manually for each co-product.
7. Choose Classification TrPg. From the Batch Tab and change from High to Medium for the Speed
Grade Characteristic.
8. Choose Back.
9. Choose Post to save your entries and note down the material document number __________
generated for the transfer posting.
10. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
The down-binning of the finished product has been completed.
Financial postings:
Posting
Key

Account

Description

Materials

Amount
(example)

Currency

99

14050201

Finished goods

HT-F410-1

5,408.00-

CNY

89

14050201

Finished goods

HT-F410-2

5,408.00

CNY

Posting
Key

Account

Description

Materials

Amount
(example)

Currency

99

14050201

Finished goods

HT-F410-1

2,704.00-

CNY

89

14050201

Finished goods

HT-F410-3

2,704.00

CNY

SAP AG

Page 46 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

4.12 Invoice Receipt from Subcontracting PO


Use
The invoice verification is done in this activity.

Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Materials Management Purchasing Purchase


Order Follow on functions Logistics Invoice Verification

Transaction code

MIRO

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Accounts Payable Accountant


(SAP_NBPR_AP_CLERK-S)

Business role menu

Accounts Payable Posting Invoice Enter Incoming Invoice


w/ PO Reference

2. On the Enter Incoming Invoice: Company Code XXXX screen, select 1 Invoice from the
Transaction dropdown menu. Then enter the following values and choose Enter:
Field name

User action and values

Comment

Invoice date

<date of document>

For example, Todays date

Amount

<value of document>

For example, CNY 1,170.00

Tax amount

<value of document>

For example, CNY 170.00

Reference

<invoice number of vendor>

For example, 450-1

Purchase
Order/Scheduli
ng Agreement

Enter PO number

Enter the PO number noted


earlier in this document

SAP AG

Description

Page 47 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

3. Choose Simulate to simulate the posting of the invoice.


4. Choose Post.
5. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
Invoice is posted.
Financial postings:
Posting
Key

G/L

Act/Mat/Ast/Vndr

Amount (example)

Currency

31

300007

Vendor 07
Subcontracting

1,170.00-

CNY

86

14010101

GR/IR-clearing
external procurement

1,000.00

CNY

40

22210101

Input VAT tax

170.00

CNY

93 (Debit)
or

64015001

Price diff of ext. p Price


diff of ext. p

only in case of small


differences

CNY

64015001
83 (Credit)
In case of Invoice Reduction, the system creates a second financial document:
Posting
key

G/L

Act/Mat/Ast/Vndr

Amount (example)

Currency

50

19990603

Invoice reduction

Only in case of
Invoice Reduction

CNY

4.13 Reviewing Invoice Receipt from Subcontracting PO


Use
The invoice verification is done in this activity using the list overview on invoice documents.

Procedure
1. Access the transaction choosing one of the following navigation options:
Option 1: SAP Graphical User Interface (SAP GUI)
SAP ECC menu

Logistics Materials Management Logistics Invoice Verification


Further Processing Display List of Invoice Documents

Transaction code

MIR5

SAP AG

Page 48 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role
Business role

Accounts Payable Accountant


SAP_NBPR_AP_CLERK-S

Business role menu

Accounts payable Reporting Display List of Invoice


Documents

2. On the Display List of Invoice Documents screen, enter the following values:
Field name

Description

User action and values

Company Code

Company Code 1000


(1000)

Document date

<date of document>

Origin and
Status

Flag Invoices Verified


online

SAP AG

Comment

Page 49 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

3. Chooser Execute, the List of Invoices is displayed. Select the invoice created in the previous
step and choose the Follow-on Documents button.
4. Having the information extracted, verify Invoice Documents.
5. Choose Back to return to the SAP Easy Access screen (SAP GUI).
Or
Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP
Home (SAP NetWeaver Business Client).

Result
Invoice documents were reviewed and assigned GL-Accounts were validated.

Follow-up Process

5.1 G/L: Period-End Plant


For this activity, run the 159 GL Period End Closing Financial Accounting scenario in
its entirety, using the master data from this scenario document.

Appendix

6.1 Reversal of Process Steps


In the following section, you can find the most common reversal steps, which you can take to
reverse some of the activities described in this document.
Create Return Purchase Order
Transaction code (SAP GUI)

ME21N

Reversal:

Change Purchase Order

Transaction code (SAP GUI)

ME22N

Business role

Purchaser
(SAP_NBPR_PURCHASER-S)

Business role menu

Purchasing Purchase Order Purchase Order

Comment

If the shown purchase order number is wrong, enter the


relevant PO by selecting Other Purchase Order. Select
the relevant items or select all items by the button Select
All. After that, choose delete and save the purchase order.

SAP AG

Page 50 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Create Outbound Delivery for Purchase Order


Transaction code (SAP GUI)

VL10B

Reversal:

Change Purchase Order

Transaction code (SAP GUI)

VL02N

Business role

Warehouse Clerk
(SAP_NBPR_WAREHOUSECLERK-S)

Business role menu

Warehouse Management Shipping Outbound


Delivery Change Delivery

Comment

Cancel return delivery

Convert Assigned Requisitions to Purchase Orders


Transaction code (SAP GUI)

ME57

Reversal:

Reverse a Purchase Order

Transaction code (SAP GUI)

ME22N

Business role

Purchaser
(SAP_NBPR_PURCHASER-S)

Business role menu

Purchasing Purchase Order Purchase Order

Comment

If the shown purchase order number is wrong, enter the


relevant PO by selecting Other Purchase Order. Select
the relevant items or select all items by choosing Select
All. After that, select delete and save the purchase order.

Approval of Purchase Orders


Transaction code (SAP GUI)

ME28

Reversal:

Cancel Release of Purchase Order

Transaction code (SAP GUI)

ME28

Business role

Purchasing Manager
(SAP_NBPR_PURCHASER-M)

Business role menu

Purchasing Approval Purchasing Documents

Comment

Select the release Code 01 and set Cancel Release. Fill


the document number into the field document number
(optional). In the following view Release Purchasing
Documents with Release Code 01, select the PO line and
choose Cancel Release.

SAP AG

Page 51 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Receive Goods from Vendor to the Purchase Order


Transaction code (SAP GUI)

MIGO

Reversal:

Cancel Material Document

Transaction code (SAP GUI)

MBST

Business role

Warehouse Clerk
(SAP_NBPR_WAREHOUSECLERK-S)

Business role menu

Warehouse Management Consumption and Transfers


Cancel Material Document

Comment

If the material document number is not known, you can


find it out by watching into the PO item line tab Purchase
Order History (Transaction code ME22N: Materials
Management Purchasing Purchase Order
Change).

Invoice Receipt by Line Item


Transaction code (SAP GUI)

MIRO

Reversal:

Cancel Invoice Document

Transaction code (SAP GUI)

MR8M

Business role

Accounts Payable Accountant


(SAP_NBPR_AP_CLERK-S)

Business role menu

Accounts Payable Posting Invoices Cancel


Invoice Document

Comment

If the invoice number is not known, you can find it out by


watching into the PO item line tab Purchase Order History
(Transaction code ME22N: Materials Management
Purchasing Purchase Order Change).

SAP AG

Page 52 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

6.2 Reporting
Use
The table below lists the most frequently used reports that help you to obtain additional information
on this business process.

You can find detailed descriptions of the individual reports in the following BPD
documents, which provide a comprehensive compilation of all important reports:

Financial Accounting: SAP ERP Reports for Accounting (221)

Logistics Processes: SAP ERP Reports for Logistics (222)

Note that the descriptions of some reports that are an indispensable part of the process
flow may be located directly in the section where they belong.

Reports

SAP AG

Page 53 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

Report title

Transaction
code(SAP
GUI)

Business role
(NWBC)

Business role
menu (NWBC)

Comment

Collective
Conversion

MD15

Production
Planner
SAP_NBPR_PR
ODPLANNER-S

Production
MRP Planned
Order
Collective
Conversion of
Plnd Ordrs.

A list of possible
planned orders.

Release
Purchasing
Documents

ME28

Purchasing
Manager

Purchasing
Approval
Purchasing
Documents
Release
Purchase Order List

A list with all


purchasing orders.

Purchasing
Group
Analysis

MCE1

Purchasing
Reporting
Order Analysis
Purchasing
Group Analysis

A list with
summarized data.

Vendor
Analysis

MCE3

Purchasing
Master Data
Vendors
Vendor Analysis

Direct access to
vendor-related data.

MRP List

MD05

Production
Evaluation
Reports MRP
List Individual
Display

The
stock/requirements
situation at the time
of the last planning
run.

SAP_NBPR_PU
RCHASER-M

Purchasing
Manager
SAP_NBPR_PU
RCHASER-M
Purchaser
SAP_NBPR_PU
RCHASER-S
Production
Planner
SAP_NBPR_PR
ODPLANNER-S

6.3 Used Forms


Use
In some of the activities of this business process, forms were used. The table below provides details
on these forms.

6.3.1

Procurement

Common form
name

Form type

Used in process step

Output
type

Technical name

Purchase Order

SmartForm

Step 4

NEU

YBCN_MMPO

SAP AG

Page 54 of 55

SAP Best Practices


Subcontracting Manufacturing with Down Binning and Batch Derivation (451): BPD

6.3.2

Goods Movements

Common form
name

Form type

Used in process step

Output
type

Technical name

Goods Receipt
(individual slip)

SmartForm

Step 4

WE01

YBCN_MMGR1

Goods Receipt
(individual slip with
inspection text)

SmartForm

Step 4

WE02

YBCN_MMGR2

Goods Receipt
(collective slip)

SmartForm

Step 4

WE03

YBCN_MMGR3

SAP AG

Page 55 of 55