Subcontracting 1610

Contents
Subcontracting ...........................................................................................................................2
Subcontracting with Source Location in PP/DS.......................................................................3
Subcontracting with Scheduling Agreements in PP/DS ..........................................................6
Subcontracting with Third-Party Provision of Components in PP/DS .....................................9
Subcontracting Without Source Location in PP/DS ..............................................................13
Subcontracting with Multiple Production Versions ..............................................................15
Determination of low-level code in subcontracting scenarios ..............................................16
Subcontracting
Use
Subcontracting is a form of procurement in which the product to be procured is manufactured by
a vendor (the subcontractor) to whom the procuring entity supplies components for the purpose.
The procuring entity may provide these components to the subcontractor either directly (using
one of its plants), or indirectly (using another of its Suppliers). When the manufacturing process
has been completed, the subcontractor delivers the ordered product (incorporating the
components provided) to the ordering party.
With Production Planning and Detailed Scheduling (PP/DS), you can plan the subcontracting
process using the following options:
If the components for the finished product are to be provided by the ordering party (plant), you
can plan as follows:
• Subcontracting with Source Location in PP/DS
• Subcontracting Without Source Location in PP/DS
• Subcontracting with Scheduling Agreements in PP/DS
If the components for the finished product are to be provided by another supplier, you can plan
as follows:
• Subcontracting with Third-Party Provision of Components in PP/DS
Features
Products that are marked as relevant for Advanced Planning can be used for subcontracting. A
subcontracting MRP area is created and assigned to the relevant products. A subcontracting
location, which is a combination of a plant and a vendor, is used to match the subcontracting
MRP area in SAP S/4HANA.
If you are implementing subcontracting with PP/DS, use the subcontracting production data
structure (PDS). This provides integration of the master data necessary for the process.
Subcontracting with multiple production versions are also supported.
Constraints
Only rough-cut planning is supported at the subcontractor location, i.e. routing information
maintained in the production version will not be transferred to the subcontracting source of
supply. Only Bill of Material (BOM) information is transferred.
With PP/DS, planning at subcontractor location is supported only for components, and not for
finished products.
Automatic transfer for subcontracting PDS is not supported.

Subcontracting with Source Location in PP/DS
Purpose
Subcontracting involves the procurement of a product from a supplier (the subcontractor) to
whom the procuring entity provides components for the purpose.
Example:
A screw manufacturer makes screws in his own plant. However, the screws are packed by an
external service provider – a subcontractor. The screws are sent to the latter, who duly packs
them and returns the packed screws to the screw manufacturer.
In planning with a source location, a purchase requisition is created at the plant, providing a
source of supply relevant for subcontracting, for the supplier (source location) who acts as a
subcontractor.
You can make use of this scenario if you work with several subcontractors or if you allow both
in-house manufacture and procurement on a subcontracting basis for a product.
Prerequisites
Data in SAP S/4HANA
The following data must have been created in SAP S/4HANA:

• Create an integration model and transfer the plant to PP/DS.
• The end product, which is marked as relevant for Advanced Planning at the plant.
• The components to be provided to manufacture the end product, which are marked as
relevant for Advanced Planning (BOM) at the plant.
• A production version must be defined in the material master record (MRP 4).
• The vendor who manufactures the end product as subcontractor.
• Create an integration model and transfer the vendor information to PP/DS.
• Manually create the subcontracting MRP area in SAP S/4HANA.
To create a new subcontracting MRP area, Go to Customizing > Production > Materials
Requirements Planning > Master Data > MRP Area > Define MRP Area.
• Manually create a subcontracting location in PP/DS of type 1050 having the same name
as the subcontracting MRP area using transaction /SAPAPO/LOC3. Assign this location
to the active model.
• Assign the subcontracting MRP Area created to the components only (in MRP1 tab).
• A purchasing info record of the category subcontracting that documents the
subcontractor as the source of supply of the end product.
The production version defined in the material master record must be specified in the info record.
From the production version, the system recognizes the vendor and consequently the
subcontractor location in which the components of the production data structure (PDS) must be
created in PP/DS.
• Send the PDS to PP/DS using transaction CURTOADV_CREATE, choose Absolute
Transfer and then choose the option Including Subcontracting or Subcontracting
Only.
The subcontracting PDS will now contain information of the production version and purchase
info record. This can be visualized through transaction /sapapo/curto_simu. On selection of a
subcontracting PDS, an option Extr. Proc. Detail is available which displays the corresponding
external procurement relationship (purchase info record).
Data in PP/DS
PP/DS automatically generates the following from the subcontracting PDS:
• External procurement relationships and transportation lanes: An external

procurement relationship of the category subcontracting is created.
• Transportation lanes from plant to subcontractor: A transportation lane is created for
each subcontracting component you wish to send from the plant (source location) to the
subcontractor (destination location).
• Production data structure: A subcontracting PDS is generated in PP/DS for the end
product at the plant where the components are present at the subcontractor location.
Process
Creation of subcontracting purchase requisition
You carry out automatic or interactive planning for your product requirement. Depending on the
planning type, either the system determines a subcontracting PDS as an allowed source of
supply, or you choose a source manually.
After the subcontractor source of supply has been chosen, PP/DS carries out the following
activities:
• It generates an external procurement order Subcontracting Purchase Requisition in

ATP category termed as SP. The order contains the subcontracting PDS as the source of
supply.
• If you have specified automatic planning, the system plans the components for the
subcontracting purchase requisition in the subcontractor location on the basis of the PDS
and carries out a source determination process there. If a transportation lane from the
plant to the subcontractor exists, the system creates stock transfer reservations. These are
automatically transferred to SAP S/4HANA.
After the transfer, the purchase requisition for the end product is created in SAP S/4HANA with
the subcontractor as the source of supply. It contains the item category subcontracting and the
components of the subcontracting purchase requisition.
Conversion of purchase requisition for end product

You convert the subcontracting purchase requisition for the end product into a subcontracting
purchase order of ATP category ‘SO’. In interactive planning you can carry out the conversion
directly from PP/DS if you set the conversion indicator there. Alternatively, you make the
conversion in the SAP S/4HANA system. Through the conversion, the requisition is deleted in
PP/DS and the subcontracting PO created.
Sending the subcontracting components to the subcontractor

Transfer posting of the subcontracting components takes place according to the S/4HANA
subcontracting process.
Using the function SC Stock Monitoring for vendor, you can create either a transfer posting or a
delivery for the necessary subcontracting components.
The transfer posting increases the stock of material provided to the subcontractor and reduces the
stock in the plant. The stock changes are transferred to PP/DS.
Posting the goods receipt for the end product

You post the goods receipt for the end product in the SAP S/4HANA system. In PP/DS, the PO
quantity is reduced by the quantity of the goods receipt. The system increases the unrestricted-
use stock for the end product. At the same time the goods receipt is posted, the goods issue for
the subcontracting components provided to the subcontractor is posted. The stock of material
provided to the subcontractor is reduced accordingly.
Subcontracting with Scheduling Agreements in PP/DS
Purpose
In subcontracting, the product that is to be procured is manufactured by a subcontractor (source
location) using a scheduling agreement (See figure for Subcontracting with Source Location in
PP/DS).
Prerequisites
Data in SAP S/4HANA

• The vendor who manufactures the end product as subcontractor.
• Create an integration model to transfer the vendor information to PP/DS.
• Assign the subcontracting MRP Area created to the components only (in MRP1 tab).
created in PP/DS.
• Subcontracting scheduling agreement: In SAP S/4HANA, you must create a
scheduling agreement for the finished product with the item type Subcontracting. Set
flag for External planning if the scheduling agreement is to be planned in PP/DS.
Transfer and then choose the option Scheduling Agreement Only.
Data in PP/DS
PP/DS automatically generates the following from the subcontracting PDS:
• External procurement relationships and transportation lanes: An external

procurement relationship of the category subcontracting is created.
• Transportation lanes from plant to subcontractor: A transportation lane is created for
each subcontracting component you wish to send from the plant (source location) to the
subcontractor (destination location).
Process
Planning in PP/DS
Planning in the plant (target location)
In automatic or interactive planning, a subcontracting PDS is determined as the source of supply
to cover a product requirement (end product).
For this requirement, an external procurement order (receipt), in other words, a schedule line for
the scheduling agreement item (category SchLne) is created in the plant.
This receipt generates a requirement (SchAgrReq) which in turn creates a receipt
(SubPurchReqs) in the subcontracting planning segment.
The system automatically creates dependent requirements (of the category DepReq) for
subcontracting components. Depending on the location type of the transportation lane of the
subcontracting components, stock transfer reservations (of the category StkTrfRes) are generated
if you provide components, or purchase requisitions are generated, if another vendor delivers the
components to the subcontractor.
Create releases in PP/DS
Scheduling agreement releases (operative delivery schedules or forecast/delivery schedules) are
then generated and output in PP/DS for these schedule lines. (See Creating Scheduling
Agreement Releases and Outputting Scheduling Agreement Releases).
The scheduling agreement schedule lines are transferred to the SAP S/4HANA system when the
releases are created as output. Here, BOM explosion is carried out, on the basis of the SAP
S/4HANA BOM.
Send subcontracting components in SAP S/4HANA to the subcontractor
Transfer posting of the subcontracting components takes place according to the SAP S/4HANA
Using the function SC Stock Monitoring for Vendor, you can create either a transfer posting or a
delivery for the necessary subcontracting components. Because this delivery is not MRP-
relevant, it does not appear in PP/DS.
Post goods receipt for the end product in SAP S/4HANA
You receive the end product from your subcontractor. You post goods receipt in SAP S/4HANA.
At the same time, goods issue for the subcontracting components at the subcontractor’s plant is
posted. The stock of material provided to the subcontractor is reduced accordingly.
The data is automatically transferred to the PP/DS system. In PP/DS the stock of the end product
increases, the stock of subcontracting components decreases and the schedule line and release are
reduced/canceled out.
OLTP Scheduling Agreement – Planning in S/4 HANA
If the Scheduling Agreement is planned in S/4 HANA and not in PP/DS, then the orders created
in PP/DS differs.
Process
Creation of subcontracting purchase requisition

You carry out automatic or interactive planning for your product requirement. Depending on the
planning type, either the system determines a subcontracting PDS as an allowed source of
After the subcontractor source of supply has been chosen, PP/DS carries out the following
activities:

ATP category termed as SP. The order contains the subcontracting PDS as the source of
supply.
• If you have specified automatic planning, the system plans the components for the
subcontracting purchase requisition in the subcontractor location on the basis of the PDS
and carries out a source determination process there. If a transportation lane from the
plant to the subcontractor exists, the system creates stock transfer reservations. This
information is automatically transferred to SAP S/4HANA.
After the transfer, the purchase requisition for the end product is created in SAP S/4HANA with
the subcontractor as the source of supply. It contains the item category subcontracting and the
components of the subcontracting purchase requisition.

Conversion of the subcontracting purchase requisition for the end product takes place in
S/4HANA. Where the order gets converted to Subco Scheduling Agreement Schedule order of
ATP category ‘SS’.
Sending the subcontracting components to the vendor

Transfer posting of the subcontracting components takes place according to the S/4HANA
Using the function SC Stock Monitoring for Vendor, you can create either a transfer posting or a
delivery for the necessary subcontracting components.

You post the goods receipt for the end product in the SAP S/4HANA system. In PP/DS, the PO
quantity is reduced by the quantity of the goods receipt. The system increases the unrestricted-
use stock for the end product. At the same time the goods receipt is posted, the goods issue for
the subcontracting components provided to the subcontractor is posted. The stock of material
provided to the subcontractor is reduced accordingly.
Subcontracting with Third-Party Provision of

Components in PP/DS
Purpose
The functionality for the third-party provision of components enables the components of a
product that is to be manufactured by a subcontractor to be provided by an external supplier
instead of your own plant.
For example, a firm sells handheld devices in the U.S.A. However, it does not manufacture them
itself, but has the entire production carried out by a subcontractor in Asia. The components for
the handheld device, such as the housing, and so on, are procured from an external supplier who
is likewise located in Asia.
In the normal form of subcontracting, the Asian supplier would deliver the components to the
plant in the U.S.A. The latter would then send them back to Asia – to the subcontractor. To avoid
this unnecessary detour, the component supplier can send the components directly to the
subcontractor.
Through third-party provision of materials in external procurement, you can now replicate this
process in the SAP system.
In PP/DS, third-part provisioning is enabled by use of a transportation lane for the components
that are to be procured externally between the supplier who is to provide the components (start
location) and the subcontractor (destination location) to manufacture the handheld devices. This
transportation lane refers to the external procurement relationship.
If a purchase requisition is created at the subcontractor location, SAP S/4HANA automatically

assigns the address of the subcontractor in Asia (not the address of the plant in the U.S.A) as the
delivery address. At the same time, the Subcontracting Vendor indicator is set. The delivery
address in the requisition is adopted in the PO during the document conversion process. When a
goods receipt is posted against such a purchase order, the components of the handheld device are
automatically posted to the “stock of material provided to supplier” (stock with subcontractor).
Prerequisites
Business partners involved Representation in SAP S/4HANA Representation in PP/DS
Customer Plant Location - type plant 1001
Vendor Vendor Location - type vendor 1011
Supplier Supplier Location - type supplier 1011
Subcontractor Subcontracting MRP area Location - type subcontractor
1050
Data in SAP S/4HANA

• Supplier who provides the components for the item that is to be manufactured.
• The Vendor who manufactures the end product as subcontractor.
• Create an integration model to transfer the vendor information to PP/DS.
• Assign the subcontracting MRP Area created to the components only in MRP1 tab.
subcontractor (vendor) as the source of supply of the end product.
created in PP/DS.
• A standard purchasing info record for the supplier.
• Create an integration model and transfer the standard info record to PP/DS.
Transfer and then choose the option Including Subcontracting or Subcontracting
Only.
external procurement relationship.
Data in PP/DS
PP/DS automatically generates the following:
External procurement relationships and transportation lanes:

▪ An external procurement relationship of the category subcontracting and a
transportation lane from subcontractor (source location) to plant (destination
location) for the finished product.
This transportation lane is assigned to the external procurement relationship for the end product.
▪ An external procurement relationship of the category standard and a
transportation lane from the vendor (source location) to the plant (destination
location) for each of the subcontracting components.
The following data must be created manually:
Transportation lanes from vendor to subcontractor:

You must manually create a transportation lane from the supplier (source location) to the
subcontractor (destination location) for each subcontracting component you wish to have sent
directly by the component supplier to the subcontractor.
Process Flow
Creation of purchase requisition
You carry out automatic planning or interactive planning for your product requirement.
Depending on the planning type, either the system determines a vendor as an allowed source of
After the source of supply has been chosen, PP/DS carries out the following activities:
ATP category SP. The order contains the subcontractor as the source of supply.
• The system determines a valid subcontracting PDS in the subcontractor location and
uses it to generate an in-house-production order for the ordered product in the
subcontractor location.
• It plans the subcontracting components for the in-house production order at the
subcontractor location and carries out a source determination process there:
▪ If a transportation lane from the plant to the subcontractor exists, the system creates
stock transfer reservations. These are transferred to SAP S/4HANA.
▪ If a transportation lane from supplier to subcontractor exists, the system creates a
purchase requisition containing the supplier as the source of supply.
After the transfer, the following data is created in SAP S/4HANA:

• The purchase requisition for the end product with the subcontractor as the source of
supply
It contains the item category subcontracting and the components of the subcontracting planned
order.
• The purchase requisitions for the subcontracting components with the supplier as the
source of supply
It contains the item category standard. In the purchase requisition, the Subcontracting Vendor
indicator is set, and the address of the subcontractor entered as the delivery address. This means
that when a goods receipt is booked, it is posted directly to the subcontractor’s stock. The
subcontractor is also represented as a vendor in SAP S/4HANA.

You convert the requisition of the category subcontracting for the end product into a
subcontracting purchase order of ATP category SO. In interactive planning you can carry out the
conversion directly from PP/DS if you set the conversion indicator there. Alternatively, you
make the conversion in SAP S/4HANA. Through the conversion, the requisition is deleted in
PP/DS and the PO created.
Converting the purchase requisition for the subcontracting components

You convert the requisition (category standard) for the subcontracting components into a
purchase order. Through the conversion, the requisition is deleted in PP/DS and the PO created.
When creating the purchase order, the system adopts the delivery address from the requisition.
Posting the goods receipt for the subcontracting components
You post the goods receipt for the subcontracting components in SAP S/4HANA. In the material
document, it is noted that the movement type goods receipt to subcontractor-vendor is
involved and the address of the subcontractor is specified as the receiving vendor. This means
that the subcontracting components are posted to stock with subcontractor in SAP S/4HANA.
Correspondingly, in PP/DS the open PO quantity is reduced and the stock of material provided to
subcontractor increased accordingly.

You post the goods receipt for the end product in SAP S/4HANA. In PP/DS, the PO quantity is
reduced by the quantity of the goods receipt. The system increases the unrestricted-use stock for
the end product.
At the same time the goods receipt is posted, the goods issue for the subcontracting components
provided to the subcontractor is posted. The stock of material provided to the subcontractor is
reduced accordingly.
Subcontracting Without Source Location in PP/DS

Purpose
In planning without a source location, the in-house-production order is generated in your own
plant. The requirements and stocks are MRP-relevant in your own plant. The transportation of
the components to be provided to the subcontractor cannot then be planned.
You can make use of this scenario if you are collaborating with just one subcontractor or if you
allow just procurement on a subcontracting basis for a product.
Prerequisites
Data in SAP S/4HANA


Transfer and then select the option Subco without source location.
The system plans in the destination location if no location-specific product master record exists
for the ordered product (e.g. packed screws) for the source location.
Data in PP/DS
PP/DS automatically generates the following:
product at the plant where the components are also present at the plant.
Process Flow
Subcontracting without a source location takes place as follows:
• In the planning run, PP/DS determines the subcontracting PDS as the source of supply for a
product requirement. PP/DS generates an order (the subcontracting requisition) within the
destination location (your plant).
A subcontracting requisition, creates requirements for the subcontracting components
(materials provided to the subcontractor).
• The subcontracting components for the subcontracting requisition order are then planned in
PP/DS. However, the subcontracting components are MRP-relevant in your own plant - not
(as in the case of subcontracting with a source location) at the subcontractor's site.
• The subcontracting requisition is converted into a subcontract order. A subcontracting
purchase order is created in PP/DS.
• Postings are made transferring the subcontracting components from "plant stock" to "stock
of material provided to vendor" (subcontracting stock/stock with subcontractor) in the SAP
S/4HANA system. This "stock of material provided to the subcontractor" is MRP-relevant in
your own plant.
• In the SAP S/4HANA system, the goods receipt is posted against the subcontract order and
the data transferred to PP/DS. There the PO quantity is reduced by the GR quantity, the
subcontracting components are retroactively booked out of stock of material provided to
subcontractor, and the stock of the ordered product increases.
Subcontracting with Multiple Production Versions

Use
The subcontracting function in Production Planning and Detailed Scheduling (PP/DS) can have
more than one production version at the location of the subcontractor.
Prerequisites
• In SAP S/4HANA, you have assigned the relevant production versions to the subcontracting
info record.
Transfer and then choose the option Including Subcontracting, or Subcontracting Only or
Subco without source location.
• Subcontracting with multiple production versions is supported.
Features
Each of the multiple production versions is available as a separate source of supply
(Subcontracting PDSs).
Determination of low-level code in subcontracting
scenarios
The determination of low-level code for a SAP S/4 HANA subcontracting scenario is as follows.
Product Location Low-level code value

Finished Product Plant (1001) 0
Component Product Plant (1001) 2
Component Product Subcontractor (1050) 1
When assuming the following master data definitions

Product 7411-EP in the planning plant PL0001
Components 7410-K1, 7410-K2 in the planning plant PL0001
in the subcontractor location SUB0001
Subcomponent(s) 7409-A, 7409-B, 7409-C in the planning plant PL0001
The following low-level code values can be expected:
Product/component Location Low-level code value

7411-EP PL0001 0
7410-K1 PL0001 2
7410-K2 PL0001 2
7410-K1 SUB0001 1
7410-K2 SUB0001 1
7409-A PL0001 3
7409-B PL0001 3
7409-C PL0001 3

Subcontracting 1610

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Subcontracting 1610

Загружено:

Авторское право:

Доступные форматы

Contents

Automatic transfer for subcontracting PDS is not supported.

The following data must have been created in SAP S/4HANA:

PP/DS automatically generates the following from the subcontracting PDS:

• External procurement relationships and transportation lanes: An external

• It generates an external procurement order Subcontracting Purchase Requisition in

Conversion of purchase requisition for end product

Sending the subcontracting components to the subcontractor

Posting the goods receipt for the end product

The following data must have been created in SAP S/4HANA:

• Create an integration model and transfer the plant to PP/DS.

PP/DS automatically generates the following from the subcontracting PDS:

• External procurement relationships and transportation lanes: An external

OLTP Scheduling Agreement – Planning in S/4 HANA

Creation of subcontracting purchase requisition

• It generates an external procurement order Subcontracting Purchase Requisition in

Conversion of purchase requisition for end product

Sending the subcontracting components to the vendor

Posting the goods receipt for the end product

Subcontracting with Third-Party Provision of

If a purchase requisition is created at the subcontractor location, SAP S/4HANA automatically

Data in SAP S/4HANA

The following data must have been created in SAP S/4HANA:

• Create an integration model and transfer the plant to PP/DS.

PP/DS automatically generates the following:

External procurement relationships and transportation lanes:

The following data must be created manually:

Transportation lanes from vendor to subcontractor:

After the transfer, the following data is created in SAP S/4HANA:

Conversion of purchase requisition for end product

Converting the purchase requisition for the subcontracting components

Posting the goods receipt for the end product

Subcontracting Without Source Location in PP/DS

The following data must have been created in SAP S/4HANA:

• Create an integration model and transfer the plant to PP/DS.

• Send the PDS to PP/DS using transaction CURTOADV_CREATE, choose Absolute

PP/DS automatically generates the following:

Subcontracting with Multiple Production Versions

Product Location Low-level code value

When assuming the following master data definitions

The following low-level code values can be expected:

Product/component Location Low-level code value

Вам также может понравиться