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