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Reply from rory.goodwin on May 14 at 8:43 AM Subcontracting (SC) can be tricky and is not well understood. SAP has 2 processes: subcontracting and external processing. In both cases plant stock is transferred (not issued) to a vendor location. You can use standard outbound delivery functionality to ship it, and a specific transaction ME2o to define what is needed at the vendor. SC uses a PR and a PO. The PO is for the material produced or completed by the vendor, and it has a BOM that is your component. When you receive a delivery back from the vendor, and perform the GR, the O (vendor) stock is consumed. External processing uses a production order to accomplish the same thing. Specific keys identify a WC as a SC WC and cause MRP to trigger a PR. The PO will not contain the material number the way it will for straight SC, it contains a link to the production order. It will look like a service. 2 transactions are required for the GR, a GR on the PO and a GR on the production order. For us, the criteria for choosing betwe
en the 2 options were the structure of the routing, the need for capacity planning at the vendor, WC tracking (e.g. molds), batch assignment, and labeling. A simple SC process like molding a material or decorating or painting a material as one step on a routing is a perfect application for SC. A complex routing in which a material is processed in the plant then sent to a vendor for (you guessed it) external processing, and then returns to the plant for more work on the same routing/production order is the perfect application for external processing.
| | | ---------------Original Message---------------
From: finlarkin
Sent: Friday, May 11, 2012 2:29 PM
Subject: Subcontracting or External Processing
Hi, was hoping someone could provide me with some information on Subcontracting and External processing. I want to be able to provide my customers with a decision tree on when to use one over the other. Has anyone any information or the pros and cons on when to use standard subcontracing or external processing? Appreciate any information |
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