Sap mm module tutorials material management functional module. The government of india is planning to introduce gst in 2017. Subcontracting in purchasing a purchase requisition item for subcontracting can be created either manually or automatically from within requirements planning. The outside person or company in this arrangement is known as a subcontractor. Subcontracting process in sap sub contracting cycle 1 a material that can be procured externally, and you have maintained bom with components. Integrating materials management with financial accounting. Subcontracting is the practice of assigning part of the obligations and tasks under a contract to another party known as a subcontractor.
Fg1112, company provide two raw materials rm11 and rm12. The subcontractor sends the invoice for the job work performed. The adoption of the subcontracting strategy is a worldwide tendency, as much in the construction sector as in other sectors, with the aim of decreasing of payroll and increasing flexibility. This document shall help p2p consultants to understand and configure. 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. Start miro transaction on the start screen of miro choose invoice transaction, enter invoice date and purchase order number and click enter on the keyboard. What are the transactional keys will come for subcontracting. In this process, components are shared to vendor to get the final product. The components that the vendor needs to manufacture the end product are specified in the subcontract order. Dec 17, 20 third party subcontracting using sc vendor concept. Subcontracting allows user to order a product from. You order the end product using a subcontract order.
Dear experts req the experts to comment on the step by step subcontracting process. The process of performing inbound goods movement while subcontracting. Oracle apps technical interview questions and answers pdf. Unlike a normal procurement process, our company makes the components for the production of the materials partially or completely available to the vendor. The following scenario can be used where the third party supplier need to get the semifinished material from a subcontractor assembleconfigure again and then deliver it to the customer directly. The standard scenario may not need any configuration unless you want to do the subcon movement through delivery. This section describes how to procure materials using a subcontract order.
Now customize the name of a clipboard to store your clips. Hi friends, i have provided brief details about subcontracting process as per my experience. 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. However, for goods movements for subcontracting, there were no standard sap customizing setting to accommodate the same purchase accounts for spain. The process is similar to a third party scenario, but the difference is that here instead of a vendor. All the sap online help in pdfs very easy to find a really good tutorial. 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. For example, if you subcontract the assembly of a component, the. Tell me the subcontracting process with movement types answer sureshkumar. Aug 04, 2009 we use your linkedin profile and activity data to personalize ads and to show you more relevant ads.
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 to create a purchase info record in sap guru99. 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. A basic knowledge of erp concepts will help you in understanding the.
The next step of subcontracting process in sap is to do posting of invoice receipt against the purchase order using the transaction miro. You require the subcontracting process in sap when a company outsources parts of its manufacturing to subcontractors. Provide the correct quantity and generate handling units. Jan 08, 2014 if a material needs to be returned by the vendor after the subcontracting process is complete could be any waste generated or any byproduct generated during subcontracting process, that material should be maintained as a component with negative quantity in the bill of material bom. Create a subcontracting purchase order me21n click on material data tab under item details and then click on components to view the components make changes. Create an inbound delivery against the po using vl31n. If the components to be provided are already known in the requisition. Sap mm material management is a functional module in sap that deals with procurement handling and material management.
Outgoing material m1 is with short text and without any material number. Sap r3 1 what is subcontracting in sap mm and how it is useful. 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. Which t code can be used to download the file from sap directories. In the processing tab, you can either create challan or display existing challans. The subcontracting shitauke act regulates activities relating to subcontracting, the process whereby one company pays another to manufacture or assemble a product for it. Sap has no obligation to pursue any course of business outlined in this document or any related. For example, if your company requires a product fg1112, then for the production of the said product i. Delivery of components to subcontracting vendor me2o.
When you do gr against subcontract po, system automatically will change the. Can any one tell subcontracting return process for gst. Sap mm interview questions and answers for experienced pdf. Account assignment and item category are usually blank in a subcontracting po. The product is ordered by your company through a purchase order. But, this is not a core feature of sap srm but is a procurement for public sectorpps solution. However, subcontracting leads to different frameworks, according to. The process of performing inbound goods movement while. Multilevel subcontracting, how to do and set up bom. To post materail to vendor account movement type 541is used. During sap mm certification you will be required to answer 80 multiple choice questions. Subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. All the sap online help in pdfs very easy to find a.
There is no negative marking for incorrect answers. It is mix of sub contracting and a third party process. Sap mm subcontracting process involves sending raw components to a. There is no such standard sap functionality which could suggest you option to select the alternative bom while explosion in po, however we could check the user exit or some implicit enhancements but that depnds whether it is aacceptable to client to implement exits or any enhancement. Therefore these pdfs are very helpful and they are a very good tutorial for users. You can thereby create an individual mrp area for every subcontractor see planning for components to be provided in subcontracting. We use your linkedin profile and activity data to personalize ads and to show you more relevant ads.
The only difference technically here is inspite of creation of a third party order it creates a subcontracting order. The material master is the central repository of data about everything your company sells. Proven solutionsservices of sap automotive consulting. Get everything you need with this goto guide to procurement with sap materials management sap mm. In sap, subcontracting is one of the special procurement type in the sap mm. As per the model gst law, you can run subcontracting process in one of the following ways. Subcontracting with chargeable components configuration. Sap online help which is not in pdf files can be printed only relatively complex and be found even sometimes as well. Subcontracting process in sap free sap mm training erproof. I used this process for subcontracting after gst with challan below link. The information relevant to a particular organizational unit for a specific material is defined in a separate view of that material.
Hi, can any one tell subcontracting return process for gst. Sap ag material requirements planning pp mrp april 2001 3 icons icon meaning caution example note recommendation syntax. This document is not subject to your license agreement or any other service or subscription agreement with sap. The process is similar to a third party scenario, but instead of a vendor, a subcontractor ships the final product to the customer. Maintain info record with info categary subcontracting t code. You can find further information on subcontracting in the sap document mm inventory management under subcontracting. In subcontracting are used external activity account frl s843520006 and change in stock account bsv s843520006.
Dear all i encounter this scenario, please advise how to design it in sap system for subcontracting sc as it involves 1st subcontracting vendor scv01 and 2nd subcontracting vendor scv02. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. Subcontracting in inventory management sap help portal. Sap materials management mm is a part of logistics area and helps to manage the. Sap erp help this blog content is manage by geshan weerasinghe. Purchase info records can be created for every type of procurement, and are processed using the transaction code me11. I created bom in cs01 with 2 versions and use production 1 for bom usage in po, i cant choose alternative bom in explode bom, it is displayed i already read some solution, they said that use, bom alternative in po subcontracting, mm materials management forum.
Sap ag materials management mm icons icon meaning caution example note recommendation syntax typographic conventions type style description. Clipping is a handy way to collect important slides you want to go back to later. More sap mm material management interview questions. This article describes a process called direct subcontracting. Give your comments and feedback and also share the blog in social network. Subcontracting process in sap free sap mm training. It means that you should try to answer as many questions as possible even if you are not sure what is the correct answer. Sap has 6 fields in the center for mm professionals, however, you can restrict your questioning to the best four to load maximum positions with top 50 sap mm interview questions and. I used this process for subcontracting after gst with challan below link sap. You can have multiple inbound deliveries for multiple goods receipts. Locating the best accounting experts to work with your current sap mm videos system is important to keep your company operating easily sap mm job support online. Taking this mm course will help you with everything you need to start your career in working with sap purchasing, inventory management, invoice verification, and many other important areas of any business.
Subcontracting the vendor thesubcontractor receives components from the ordering party with the help of which it produces a product. This course will help you to understand the complete flow of subcontracting process in sap mm. Subcontracting process in sap mm free sap mm tutorial by. Thirdparty subcontracting using sc vendor concept sap blogs. 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. Sep, 2015 in this document, i have provided step by step configuration and process steps of intra company sto with delivery via shipping. The different steps and events within the subcontracting process. Hi all, i came across with a new functinality third party subcontracting. The information in this document is confidential and proprietary to sap and may not be disclosed without the permission of sap. Any waste generated and received during subcontracting process can be maintained as component with negative quantity. Another variant is a multilevel subcontracting, when the component for the subcontractor is produced by another subcontractor. In the subcontracting process, the materials are supplied to a vendor in order to perform a value added service to the material. Tell me the subcontracting process with movement types. Sap business process sap mm is known as sap material management system.
For example, the accounting view for a material for a. Create the goods receipt for the subcontracting purchase order. Jan 27, 2014 hi all, i came across with a new functinality third party subcontracting. Sap mm overview presentation for instructors 240 slides. If a material needs to be returned by the vendor after the subcontracting process is complete could be any waste generated or any byproduct generated during subcontracting process, that material should be maintained as a component with negative quantity in the bill of material bom. For the purposes of the special procurement types, there are special stock types. Lets start with discussing the steps that are involved in the subcontracting process in sap. In the next screen, you can select the material document 541 movement type and choose the without challan button to create the billing document. For subcontracting, we receive the byproduct from sub contractor with gr mvt 545 in blocked stock and by using tp 555 we transfer the material to scrap from blocked stock. Let us study the basics of subcontracting to understand. Dive into the key functions and system transactions youll need for your everyday job, from creating pos or contracts to processing invoices and payments. I am using the simple example of colouring bottle cover done by 1st scv01 and then putting bottle label done by the above 2 sc vendors respectively 1.
Fetching sap delivery headeritem texts with function module by ganesh padala. Contents at a glance 1 overview of sap erp19 2 overview of the materials management and financials relationship 41 3 basics of con. In subcontract order processing, the vendor receives materials components with which it produces the end product. I had searched in customizing and also through some of the oss notes. How subcontracting process is mapped get your basics right. Which facility of sap will you use if you want to maintain different moving price of a material based on its origin. Nov 28, 2012 sap erp help this blog content is manage by geshan weerasinghe. Create custom pdf inventory management and physical inventory mm im integration of inventory management in the logistics system goods movement timely consumption and goods movement posting with sap snc integration. A material master file stores and maintains all of the information related to. The subcontracting with chargeable components solution allows you to record all transactions with subcontractors so that they meet the requirements arising from the act. Subcontracting is one of the procurement processes available in mm. It describes how subcontract orders are processed in purchasing, inventory management, and invoice verification. You need to activate the relevant inspection type 0 in the material master in qm view. During subcontracting process, our company orders material from an external vendor.
This process is considered better than a complete external procurement as there can be a tighter control on the product quality. Dec 03, 2011 subcontracting info record for vendor and finished or semi finished materialpossible but not mandatory. Go to purchase order item category l go to purchase order explode bom bill of materials at material data tab create the provided subcontracting items materials master record and enter these at explode bom. Jul 12, 2010 system setup for multilevel subcontracting. Sap mm material management is one the largest functional module in sap. The subcontracting is not supported by all applications in the same way.
Its purpose is to communicate i the risks associated with subcontracting. Click here to visit our frequently asked questions about html5. Key for creating the info record is vendormaterial combination. The material master file contains the data and parameters that define each material used in an sap client. Your browser does not currently recognize any of the video formats available. Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work.
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