I had searched in customizing and also through some of the oss notes. Subcontracting info record with a valid price is mandatory for the finished product. After maintaining the part, the subcontractor returns it to the service provider. Anyone can share with the me a link to the docs for the settings. Sap mm interview questions and answers for experienced pdf. In this page you will get some sap mm tutorials, details. Sap mm material management is one the largest functional module in sap. Any waste generated and received during subcontracting process can be maintained as component with negative quantity.
The materials are kept in the warehouse of your company until you withdraw the said materials for processing. Sep 04, 2014 subcontracting process in sap sub contracting cycle 1 a material that can be procured externally, and you have maintained bom with components. Item categories you can use in purchasing documents. In subcontracting process company provides components to vendor for rework and vendor. Hi friends, i have provided brief details about subcontracting process as per my experience. Subcontracting process in sap mm free sap mm tutorial by. Dec 30, 2019 the purpose of this page is to clarify subcontracting process and configuration for gst and to resolve common errors in j1igsubcon and j1igrecon transactions.
In this process, components are shared to vendor to get the final product. In subcontracting process if the subcontracting period of 180 days is completed and if material is still with vendor, how to complete the process. Materials management archives sap materials, documents. Crystal clear instructions, screenshots and key terminologies are provided for the main procurement processes like purchase requisition and goods receiptreturn. As per the model gst law, you can run subcontracting process in one of the following ways. Tcodesme21n create purchase order me29n release po if release strategy is there mb1b transfer the material of components through movement type 541 against purchase order j1if01 create subcontrcating challan with refernce to the document posted by movement type 541 migo enter the grn with reference to purchase order and refer the subcontracting challan in the. Tcodesme21n create purchase order me29n release po if release strategy is there mb1b transfer the material of components through movement type 541 against purchase order j1if01 create subcontrcating challan with refernce to the document posted by movement type 541 migo enter the grn with reference to purchase order and refer the.
The subcontractor sends the invoice for the job work performed. Apr 18, 2020 in some cases, logistic processes require special procurement types to be used. Vendor consignment process in sap is used when a vendor provides your company materials on loan. However, for goods movements for subcontracting, there were no standard sap customizing setting to accommodate the same purchase accounts for spain. Unlike a normal procurement process, our company makes the components for the production of the materials partially or completely available to the vendor. You order the end product using a subcontract order. Jul, 2017 vendor consignment process in sap is used when a vendor provides your company materials on loan. Sap mm module tutorials material management functional module. Subcontracting is one of the procurement processes available in mm. In this process, a manufacturing company provides raw materials components to a subcontracting vendor. You can thereby create an individual mrp area for every subcontractor see planning for components to be provided in subcontracting. The components that the vendor needs to manufacture the end product are specified in the subcontract order. The purpose of this page is to clarify subcontracting process and configuration for gst and to resolve common errors in j1igsubcon and.
More sap mm material management interview questions. Classic subcontracting outsourcing production sap blogs. Subcontracting the vendor thesubcontractor receives components from the ordering party with the help of which it produces a product. Vendor consignment process in sap free sap mm training.
A subcontractor info record contains ordering information for subcontract orders. Tell me the subcontracting process with movement types. Jul 12, 2010 subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. Hi all what is the perrequisites for subcontracting process and the configuration part. Now customize the name of a clipboard to store your clips. Jul 29, 2008 sap procurement subcontracting subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. This document covers the configuration to set up subcontracting process for gst and. Then, the liability is created for the vendor and a payment is done to the vendor on agreed intervals, e. The government of india is planning to introduce gst in 2017. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. Nov 28, 2012 sap erp help this blog content is manage by geshan weerasinghe.
Sap best practices for retail india sap best practices scenario overview 1 purpose the subcontracting process involves sending raw components such as cuflings to a vendor for specific manufacturing processes and receiving the valueadded finished article back into inventory. If it is any damage for material in subcontract vendor side so what happen and what is the procedure to follow. Pdf sap community network direct subcontracting process. Subcontracting can be defined as the processing of the material by the external supplier to get the final products. Sap mm module tutorials material management functional. The standard scenario may not need any configuration unless you want to do the subcon movement through delivery.
Create po with item category l,the goods are transferred to subcontractor by 541 movement for this movement note no accounting does take place. From the sap easy access screen, choose logistics materials management inventory management goods movement transfer posting. Consignment subcontracting stock transfer using stock. Subcontracting process in sap sub contracting cycle 1 a material that can be procured externally, and you have maintained bom with components. Sap ag materials management mm icons icon meaning caution example note recommendation syntax typographic conventions type style description. The purpose of this page is to clarify subcontracting process and configuration for gst and to resolve common errors in j1igsubcon and j1igrecon transactions. The process is similar to a third party scenario, but the difference is that here instead of a vendor. Subcontracting process jobwork in gst sap community wiki. For the purposes of the special procurement types, there are special stock types. Features of sap mm the features of sap mm system are as follows. Lets start with discussing the steps that are involved in the subcontracting process in sap.
We use your linkedin profile and activity data to personalize ads and to show you more relevant ads. The product is ordered by your company through a purchase order. Sap mm sub contracting process with bombill of materials full overview for beginners duration. In the subcontracting process, the materials are supplied to a vendor in order to perform a value added service to the material. Subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor.
Material management process ensures that there is never a shortage of materials or any gaps in the supply chain process of the organization. Item category l is to be used in the purchase order. Jun 06, 2019 sap mm subcontracting process involves sending raw components to a vendor for specific manufacturing processes and receiving the valueadded finished material back into inventory. Let us study the basics of subcontracting to understand. Fg1112, company provide two raw materials rm11 and rm12. Sap procurement subcontracting subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. In subcontract order processing, the vendor receives materials. In sap, subcontracting is one of the special procurement type in the sap mm. How subcontracting process is mapped get your basics right. Subcontracting process in sap mm after gst subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. Clipping is a handy way to collect important slides you want to go back to later.
First operation uses first component, second operation which is performed externally, uses. Sap mm i about the tutorial sap is an enterprise resource planning software that was basically designed to manage resources, information and activities that are required to complete business processes such as procurement and managing orders, billing of orders and management of human resources. Nov 25, 2017 sap mm sub contracting process with bombill of materials full overview for beginners duration. We will see how theses special procurement types and special stock types are used in the following processes.
During subcontracting process, our company orders material from an external vendor. Jun 26, 2018 in sap, subcontracting is one of the special procurement type in the sap mm. Subcontracting process in sap free sap mm training. Amazing blog thanks for sharing sap mm online training. Subcontracting in purchasing a purchase requisition item for subcontracting can be created either manually or automatically from within requirements planning.
Alternatively you can display a list of all open orders containing components to be shipped, select the relevant order, and directly post a goods issue. Subcontracting process in sap mm is a kind of special procurement where your company orders material from external vendor and provides components to the said vendor for production. You can find further information on subcontracting in the sap document mm inventory management under subcontracting. For example, if your company requires a product fg1112, then for the production of the said product i. Sap mm overview presentation for instructors 240 slides february 15, 2017 0 comments in materials management by erpdocs this sample powerpoint slide gives an overview of the procedures listed below which are involved in materials management module of sap. In a typical subcontracting process, a manufacturing company provides. The process is similar to a third party scenario, but instead of a vendor, a subcontractor ships the final product to the customer. If the components to be provided are already known in the requisition.
This second operation component go for vendor so the same process flow to create subcontract challan, excise invoice capture, all those things correct. Sep 11, 2017 sap materials management subcontracting process. Dec 03, 2011 during subcontracting process, our company orders material from an external vendor. Tell me the subcontracting process with movement types answer sureshkumar. Dear experts req the experts to comment on the step by step subcontracting process. Jan 26, 2006 this tutorial explains subcontracting process flow in sap sd. To do so, in customizing for materials management, choose. This process is considered better than a complete external procurement as there can be a tighter control on the product quality. How to do a subcontract process cycle in sap with planning run how to do subcontract process cycle in sap with planning run. Learn how to process step by step the execution of subcontracting procurement process in sap mm. In some cases, logistic processes require special procurement types to be used. How to create a purchase info record in sap guru99. After reading this training manual you will be able to understand procurement process from start to finish in sap mm module.
Subcontracting process in sap free sap mm training erproof. This article describes a process called direct subcontracting. The service provider provides the part to be maintained to the subcontractor along with other components that may have to be exchanged during the subcontract rework. Outgoing material m1 is with short text and without any material number. What are the accounting entries when you do the goods receipt for the intra company stock transport order.
Customers have implemented below gst notes for subcontracting scenario from below guided answer link. The components required for the activity are to maintained in the purchase order material data tab. The different steps and events within the subcontracting process. Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. The outside person or company in this arrangement is known as a subcontractor. Sap mm overview presentation for instructors 240 slides.
Is it possible to have pr release strategy at item level for one document type and header level for other document type. You require the subcontracting process in sap when a company outsources parts of its manufacturing to subcontractors. Sap mm subcontracting process involves sending raw components to a vendor for specific manufacturing processes and receiving the valueadded finished material back into inventory. Some software products marketed by sap ag and its distributors contain.