138_ERP607_BPD_EN_IN

EHP7 for SAP ERP 6.0

April 2014

English

Subcontracting (138)

SAP AGDietmar-Hopp-Allee 1669190 WalldorfGermany

Business Process Documentation

SAP Best Practices Subcontracting (138): BPD

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Icons

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

External Process

Business Process Alternative/Decision Choice

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

Example text Emphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example, SELECT and INCLUDE.

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EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the ENTER key.

Example text Exact user entry. These are words or characters that you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.



Contents

1 Purpose.................................................................................................................................. 5

2 Prerequisites.......................................................................................................................... 5

2.1 Master Data and Organizational Data.............................................................................5

2.2 Business Conditions........................................................................................................9

2.3 Roles............................................................................................................................. 10

2.4 Preliminary Steps..........................................................................................................11

2.4.1 Initial Requirement Situation..................................................................................11

2.4.2 Executing MRP......................................................................................................12

3 Process Overview Table.......................................................................................................13

4 Process Steps...................................................................................................................... 15

4.1 Assigning Purchase Requisition / Creating Purchase Order (with MRP).......................15

4.2 Creating Subcontract Order Manually (w/o MRP).........................................................17

4.3 Approval of Purchase Orders........................................................................................19

4.4 Transferring of Components to Subcontractor...............................................................22

4.4.1 Prerequisites..........................................................................................................22

4.5 Creation of Subcontracting Challan...............................................................................26

4.6 Receiving Goods from Subcontracting PO....................................................................27

4.7 Reconciling Subcontracting Challan..............................................................................28

4.8 Completing/Reversal/Re-credit Subcontracting Challan................................................30

4.9 Invoice Receipt from Subcontracting PO.......................................................................31

4.10 Reviewing invoice Receipt from Subcontracting PO..................................................32

4.11 Output Messages in Case of Invoice Reduction (Optional)........................................33

4.12 Posting Outgoing Payment........................................................................................34

5 G/L: Period-End Plant...........................................................................................................35

6 Appendix.............................................................................................................................. 35

6.1 Reversal of Process Steps............................................................................................35

6.2 Posting In-time Consumption of Components...............................................................37

6.3 SAP ERP Reports.........................................................................................................38

6.4 Used Forms...................................................................................................................39

6.4.1 Procurement...........................................................................................................39

6.4.2 Goods Movements.................................................................................................39



Subcontracting



1 PurposeThe MM Subcontracting process involves sending raw components to a vendor for specific manufacturing processes and receiving the value-added finished material back into inventory, meanwhile, need to keep track of what materials you have issued and when they have to be returned by using subcontracting challan.

A subcontract purchase requisition is either generated via the Material Requirements Planning (MRP) process or manually by a requestor. A Purchasing Administrator validates the accuracy of the purchase requisition and converts it into a purchase order. The purchase order is subject to approval based on predefined parameters prior to being issued to a vendor then the component is transferred to subcontractor with subcontracting challan.

The consumption of sent components is recorded upon receipt of the value-added finished material with reconciling and completing subcontracting challan. The vendor sends the invoice for the services provided which is paid during the normal payment cycle

On goods delivery, the scope item focuses on the following activities:

Purchase order creation based on a scheduled purchase requisition created by last MRP run

Optional: manual purchase order creation

Purchase order approval (if required)

Transferring of Components to Subcontractor

Creation of Subcontracting Challan

On goods receipt, the scope item focuses on the following activities:

Goods receipt from Subcontracting PO

Reconciling Subcontracting Challan

Completing/Reversal/Re-credit Subcontracting Challan

Invoice receipt by line item

Invoice verification and validation of tax expenses

Outgoing payment

Note: You can also to post the real-time consumption of components. This is useful if the subcontracting process lasts for a longer period of time and you want to track the components usage by the subcontractor more precisely. This feature is not described in the standard process. However you find the necessary step to post the in-time consumption in the appendix of this BPD. If you want to use this feature, you also have to make additional settings in customizing and might also have to create additional master data. For further information refer to the section in the appendix and the appendix in the configuration guide of this scope item.

2 Prerequisites

2.1 Master Data and Organizational DataSAP Best Practices Standard Values

Essential master and organizational data was created in your ERP system in the implementation phase, such as the data that reflects the organizational structure of your company and master data that suits its operational focus, for example, master data for materials, vendors, and customers.



This master data usually consists of standardized SAP Best Practices default values, and enables you to go through the process steps of this scope item.

Additional Master Data (Default Values)

You can test the scope item with other SAP Best Practices default values that have the same characteristics.

Check your SAP ECC system to find out which other material master data exists.

Using Your Own Master Data

You can also use customized values for any material or organizational data for which you have created master data. For more information on how to create master data, see the Master Data Procedures documentation.

Use the following master data in the process steps described in this document:

Master / org. data

Value Master / Org. data details Comments

Material R13 Raw material as subcontracting component with line item, NORM (PD planning), no batch, no serial number

See sections Business Conditions and Preliminary Steps











Material R1402 Raw material as subcontracting component with line item, NORM (PD planning), no batch, no




Master / org. data


serial number



Master / org. data




Material S21 Semi finished Good for Trading / Repetitive manufacturing with line item category NORM (PD planning), no batch, no serial number


Material S22 Semi finished Good for Reg. Trading / production with line item category NORM (PD planning), phantom assembly, no batch, no serial number


Material S23 Semi finished Good for Reg. Trading / production with line item category NORM (PD planning), for subcontracting process, no batch, no serial number








Material S24 Semi finished Good for Reg. Trading / production with line item category NORM (PD planning), subcontracting, no serial number, batch controlled (FIFO strategy)


Material S25 Semi finished Good for External procurement with line item category NORM (PD planning), subcontracting, no serial number, no batch




Master / org. data


Plant 1000 Plant 1

Plant 1100 Plant 2

Storage Location

1020 Plant 1000 Shop floor w/o lean WM

Storage Location

1030 Plant 1000 Shipping w/ lean WM

Storage Location

1040 Plant 1000 Shipping w/o lean WM

Storage Location

1050 Plant 1000 Stores w/ lean WM

Storage Location

1060 Plant 1000 Returns

Storage Location

1120 Plant 1100 Shop floor w/o lean WM

Storage Location

1130 Plant 1100 Shipping w/ lean WM

Storage Location

1140 Plant 1100 Shipping w/o lean WM

Storage Location

1150 Plant 1100 Stores w/ lean WM

Storage Location

1160 Plant 1100 Returns

Shipping Point

1000 Plant 1000 Shipping point 1000

Shipping Point

100R Plant 1000 Shipping Point 100R

Shipping Point

1100 Plant 1100 Shipping point 1100

Shipping Point

110R Plant 1100 Shipping point 110R

Sales organization

1000

Distribution channel

10

Division 10

Vendor 300007 Vendor Domestic 07-Subcon.If you want to send form print

outs via e-mail instead of using the print functionality make sure that you have maintained a valid e-mail address in the vendor master data.



Master / org. data


Company Code

1000 Company Code 1000

Purchase Organization

1000 Purch. Org. 1000

Purchase group

100 Group 100 Plant 1000

Purchase group


Purchase group


Purchase group


Purchase group


Purchase group


Purchase group


Purchase group




2.2 Business ConditionsThe business process described in this Business Process Documentation is part of a bigger chain of integrated business processes or scope items. As a consequence, you must have completed the following processes and fulfilled the following business conditions before you can start going through this scope item:

Business condition Scope item

You have completed all steps described in the Business Process Documentation Prerequisite Process Steps (154). These process steps include the step Roll MM Period to Current Period. Perform this activity if the MM period in the system is not set to the current period. Usually, this activity has to be done once a month.

Prerequisite Process Steps (154)

To run through this scope item, the materials must be available in stock. If you use trading goods (HAWA) you can either:

run through the Procurement without QM (130) process, or

create stock using transaction MIGO (for details see chapter Preliminary Steps).

Procurement without QM (130)

In order to run through this scope item, the materials must be available in stock. If you use finished goods (FERT) you can either:

run through the Make-to-Stock Production - Discrete Industry (145) process (for material F126), or

create stock using transaction MIGO (for details see chapter Preliminary Steps).

Make-to-Stock Production – Discrete Industry (145) (material F126)



2.3 Roles

UseThe following roles must have been installed to test this scope item in the SAP NetWeaver Business Client (NWBC). The roles in this Business Process Documentation must be assigned to the user or users testing this scope item. You do not need these roles if you are not using the NWBC interface, but the standard SAP GUI.

PrerequisitesThe business roles have been assigned to the user who is testing this scope item.

Business role Technical name Process step

Employee (Professional User)

SAP_NBPR_EMPLOYEE_S Assignment of this role is necessary for basic functionality.

Production Planner

SAP_NBPR_PRODPLANNER_S MD04 Check Requirement Situation,

MDBT Execute MRP

Purchasing Manager

SAP_NBPR_PURCHASER_M ME28 Approve Purchase Orders

Purchasing Administrator

SAP_NBPR_PURCHASER_S ME21 Create Subcontract Order,

ME57 Assign Purchase Requisition,

ME9F

Warehouse Clerk SAP_NBPR_WAREHOUSECLERK_S

LT03 Create Transfer Order,

LT12 Confirm Transfer Order,

VL02N Create Outbound Delivery,

ME2O Stock Monitoring for Vendor,

MIGO Post Goods Receipt

Accounts Payable Accountant

SAP_NBPR_AP_CLERK_S MIRO, MIR5 Invoice Verification

Taxation Clerk SAP_NBPR_IN_TAXATIONCLERK_S

Store Keeper SAP_NBPR_IN_STOREKEEPER_S



2.4 Preliminary Steps

2.4.1 Initial Requirement Situation

UseThe MRP run only creates purchase requisitions if the demand is bigger than the available quantity. You can check the requirement situation in the Stock/Requirement List. If necessary, you can reduce the quantity of unrestricted use by posting a goods issue.

To create demand you can use building block 109, section Sales Order Entry.

Procedure1. Access the transaction choosing one of the following navigation options:

Option 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics Materials Management Material Requirements Planning (MRP) MRP Evaluations Stock/Reqmts List

Transaction code MD04



Option 2: SAP NetWeaver Business Client (SAP NWBC) via Business Role

Business role Production Planner

(SAP_NBPR_PRODPLANNER_S)

Business role menu Production Evaluation Reports Display Stock/Requirements Situation



2. Fill in the material number and the plant and go on with the process.

Field name Description User action and values Comment

Material <Material> For example: S23

Plant <Plant> For example: 1000



3. Choose Enter. On the view Stock/Requirements List as of xx:xx hrs screen, you can see the MRP elements. If there are purchase orders you can cancel them by running the 130 – Procurement without QM step 5.1. Only if the stock is too high, go on with the following step in this scope item. Otherwise go to step 4.2 or 4.3.

4. Access the transaction choosing one of the following navigation options:


SAP ECC menu Logistics Materials Management Inventory Management Goods Movement Goods Movement (MIGO)

Transaction code MIGO




Business role Warehouse Clerk

(SAP_NBPR_WAREHOUSECLERK_S )

Business role menu Warehouse Management Consumption and Transfer Other Goods Movement



1. On the Initial screen, enter the following data:


Executable Action Goods Issue

Reference Document

Other

Movement Type <Movement Type> For example: 562

Material (Material tab page)

<Material> For example: S23

Plant (Where tab page)

<Plant> For example: 1000

Storage Location (Where tab page)

<Storage Loc> For example: 1050

Quantity in Unit of Entry (Quantity tab page)

Fill in the necessary quantity to fall below the sum of plant stock and firmed receipts.

Document Date <actual day> <actual day>

Posting Date <actual day> <actual day>



2. In case of batch management, the batch number has to be entered on the Batch tab page.

3. In case of serial number management, the serial numbers has to be entered on Serial numbers tab page. Choose Find. On the following Display Material Serial Number screen choose Execute. On the following Display Material Serial Number: Serial Number List screen, select the Serial numbers and choose Choose.

4. Choose Item OK and Enter.

5. On the Excise Invoice tab, in the field Excise Action, choose 06 No Excise Entry.

6. Choose Post and note the material document number: ______________________.

ResultThe unrestricted use stock of the material was reduced.

Financial postings:

Material Debited Accounts Credited Accounts Cost Element / CO Object

Semifinished Product (HALB)

41301100 Change in stock of semi-finished goods

22301100 Stock of semi-finished good



2.4.2 Executing MRP

UseTypically, MRP will be scheduled as a nightly batch job. To monitor the progress of the batch job, choose Show scheduling from the initial screen of this transaction. This activity needs to be carried out only for material S23.

Procedure



SAP ECC menu Logistics Production MRP Planning Total Planning As Background Job

Transaction code MDBT





(SAP_NBPR_PRODPLANNER_S)

Business role menu Production Job Planning MRP Run In Batch



2. On the Total Planning: Variants screen, select a BP variant (Y1000) and choose Start Immediately.

ResultThe system generates planned orders, purchase requisitions, and exception messages. To generate a report for this activity, use the transaction code MD06 (Logistics Production MRP Evaluations MRP List - Collective Display) with plant 1000 and MRP controller 100.

3 Process Overview Table

Process step External process reference

Business condition

Business role

Transaction code

Expected results

Assign Purchase Requisition and Create Subcontract Order

– This activity assigns a purchase requisition for planned subcontracting and creates a purchase order.

Purchaser ME57 Purchase order is created

Create Subcontract order manually (optional)

– – Purchaser ME21N PO is created

Approve Purchase Orders

– All the purchase orders that require release by Release Authorization person are listed and must be approved.

Purchasing Manager

ME28 Purchase orders are approved

Transfer Components to Subcontractor

– Components must be sent to vendor

Warehouse Clerk

MB11 Components are sent to subcontractor

Create Subcontracting Challan)

– It is statutory requirement to send the components to subcontractor with Subcontracting Challan

CIN J1IF01 The Subcontracting Challan is generated

Receive Goods from Subcontracting PO

– Receipt of goods from vendor

Warehouse clerk (Material Receiver)

MIGO Material document and accounting document showing



receipt of purchased material and consumption of component(s)

Reconcile Subcontracting Challan

After making Goods Receipt the GR has to be reconciled with the challan sent to subcontractor

CIN J1IFQ GR is reconciled with the challan sent to subcontractor

Complete Subcontracting Challan

complete the challan

CIN J1IF13 Subcontracting challan successfully completed

Invoice Receipt from Subcontracting PO

– Capture Invoice received

Accounts payable

MIRO Invoice document and accounting document

Review Invoice Receipt

Invoice has been received


MIR5 Invoice has been reviewed

Output Messages in case of invoice reduction (optional)

Output messages for invoice reduction


MR90 Messages have been outputted.

Outgoing Payment

See Accounts Payable (outgoing payment) (158) scope item

See scope item no. 158





4 Process Steps

4.1 Assigning Purchase Requisition / Creating Purchase Order (with MRP)

UseIn this activity a purchase requisition for planned subcontracting is assigned and a corresponding purchase order is created.

PrerequisitesThe MRP run and created purchase requisitions.

Procedure



SAP ECC menu Logistics Material Management Purchasing Purchase Requisition Follow-on functions Assign and Process

Transaction code ME57




Business role Purchaser

(SAP_NBPR_PURCHASER_S)

Business role menu Purchasing Purchase Requisition Purchase Requisition Assign and Process Requisitions

2. On the Assign and Process Purchase Requisitions screen, enter the following values:


Plant <Plant> For example: 1000

Purchasing group <Purch Grp> For example: 100

Scope of List A You can use Scope of list ALV, but must modify the following steps.

Item Category <Item Cat> For example: L (Subcontracting)


3. Choose Execute.

4. Select the requisition lines from the Item Overview section on the screen.

5. Choose Edit Items to edit the line details that are at the bottom of the screen.

6. Select the editing lines, Choose Assign Source of Supply.

A yellow triangle is indicated for purchase requisitions where the system could not assign a clear source of supply. In this case select the requisition Open item detail. On the Assign Source of Supply tab page you will get a list of source. Select supplier 300007 and choose Assigned source. Take care that the supplier has assigned a customer number in his master record (view control).

7. Select the line of the purchase requisition already assigned with a source from the Item Overview section.

8. To save the requisition changes, choose Save.

9. On the Assignments sub-page, select the checkbox of the source, then choose Create purchase order (it is a red and white button in the upper left).

10. On the Create Purchase Order screen, from the Document Overview section (on the left), select the requisition number from the list.

11. To extract the requisition information into the Purchase Order, choose Adopt.

If the PO is subject to Evaluated Receipt Settlement, in the Item Details section Invoice tab page, enter the tax code S1.

If there is a subcontracting purchasing info record – created for the specific subcontracting vendor, material, purchasing organization, plant and info category – the net price of the subcontracting purchase order is defaulted automatically. For



example, in this scope item, the subcontracting purchasing info record is created for the following data:

Field User Action or Values Comments

Subcontracting vendor 300007

Material S23

Purchasing Organization 1000

Plant 1000

The Net Price of the Purchase Order will be defaulted automatically if there is a Purchasing Info Record created for the specific combination of Vendor, Material, Purchasing Organization, Plant and Info Category. For example, as demo data in this Scope Item: Purchasing Info Record was already created for the combination of 300007, S23, 1000, 1000 and Subcontracting Info Category.

However, a system error message of “Net price must be greater than 0.”, will occur if the Purchasing Info Record does not exist for the specific value combination of Vendor, Material, Purchasing Organization, Plant and Info Category that is used for the PO creation. In that case, please manually input the net price on the PO, in order to save the document.



12. Choose Save and record the PO number: ____________________________.

13. Choose Back to return to the SAP Easy Access screen (SAP GUI)

Or

Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP Home (SAP NetWeaver Business Client).

ResultThe system generates a subcontract PO to vendor.

4.2 Creating Subcontract Order Manually (w/o MRP)

UseThis activity creates a purchase order for consumables. You only have to carry out this activity if you don’t convert an already existing purchase requisition as described in chapter 4.1 Assigning Purchase Requisition / Creating Purchase Order.

You now have the possibility to store the data of purchase orders as template for the data you use most of the time. To save the data to a template, choose Save as Template.To load data from a template, choose Load from Template.

Procedure



SAP ECC menu Logistics Materials Management Purchasing Purchase Order Create Vendor/Supplying Plant Known

Transaction code ME21N






Business role menu Purchasing Purchase Order Purchase Order Create Purchase Order

2. On the Create Purchase Order screen, make the following entries and choose Enter:


PO type <PO Type> For example: NB “Standard PO”

Purchasing Organization

<Purch Org> For example: 1000

Purchasing Group <Purch Grp> For example: 100

Company Code <Company Code> For example: 1000

Vendor <Vendor> For example: 300007

3. On the item line, make the following entries:


Item Cat. Item Category <Item Cat> For example: L


PO Quantity <Quantity> Enter a quantity

Plnt Plant <Plant> For example: 1000

4. Choose Enter.

If there is a subcontracting purchasing info record – created for the specific subcontracting vendor, material, purchasing organization, plant and info category – the net price of the subcontracting purchase order is defaulted automatically. For example, in this scope item, the subcontracting purchasing info record is created for the following data:

Field User Action or Values Comments

Subcontracting vendor 300007

Material S23

Purchasing Organization 1000

Plant 1000



The Net Price of the Purchase Order will be defaulted automatically if there is a Purchasing Info Record created for the specific combination of Vendor, Material, Purchasing Organization, Plant and Info Category. For example, as demo data in this Scope Item: Purchasing Info Record was already created for the combination of 300007, S23, 1000, 1000 and Subcontracting Info Category.

However, a system error message of “Net price must be greater than 0.”, will occur if the Purchasing Info Record does not exist for the specific value combination of Vendor, Material, Purchasing Organization, Plant and Info Category that is used for the PO creation. In that case, please manually input the net price on the PO, in order to save the document.

5. Choose Save. Record the PO number.


Or


ResultThe PO is created.

4.3 Approval of Purchase Orders

UseAll the purchase orders that require release by an authorized person are listed and must be approved.

Only POs with a value higher than 25000 INR can be released in this transaction.

Procedure



SAP ECC menu Logistics Material Management Purchasing Purchase Order Release Collective Release

Transaction code ME28



2. On the Release (Approve) Purchasing Documents screen, enter the following values:


Release Code <Release Code> 01

List with items X Check the checkbox

You need a release code for PO when the document type is NB or FO and the purchase group is 100, 101, 102, 103, 200, 201 or 202 and the value is greater than 25000.00 INR.

3. Choose Execute.

4. A list of all POs requiring release by this release code will be displayed.

5. Select the PO line that you want to release.

6. Choose Release and then choose Save.

7. Choose Back to return to the SAP Easy Access screen (SAP GUI).


Business role Purchasing Manager

(SAP_NBPR_PURCHASER_M)

Business role menu Purchasing Approval Purchasing Documents Release Purchase Order - List

1. Enter in the Search criteria Release code 01 and choose Execute

2. Select your purchase order and choose Release purchase order.

3. Choose Save. The purchase order is released.

4. Choose Exit (Shift+F3) and confirm the Business client message with Yes to return to SAP Home (SAP NetWeaver Business Client).

ResultThe purchase order is released.

The print-out of the purchase order is executed automatically and immediately (see settings in SAP GUI transaction MN04 for output type NEU and defaults in your user settings in transaction SU3).

You can also start the print-out manually:



SAP ECC menu Logistics → Materials Management → Purchasing → Purchase Order → Messages → Print/Transmit

Transaction code

ME9F






Business role menu Purchasing → Purchase Order → Purchase Order → Message Output

2. On the Message Output screen, make the following entries:

Field name Description User action and values

Comment

Processing Status

0 Status '0' means that the processing program has not yet been started.

3. Select the document number, vendor, purchasing organization, or purchasing group

4. Choose Execute.

5. Select the purchase order number and choose Output Message. The system prints out your PO.

The default settings generate a print-out of a purchase order. If you prefer to send the purchase order to the vendor via e-mail, ensure that all requirements listed in the Quick Guide in the Outbound e-mail configuration and Printing sections are met and proceed as described below. To switch from print-out to sending forms via e-mail in general, check the document Printing : Forms adaptation guide.doc for details.



SAP ECC menu Logistics → Materials Management → Purchasing → Purchase Order → Change

Transaction code

ME22N




Business role menu

Purchasing → Purchase Order → Purchase Order → Change Purchase Order

2. Choose Other purchase order.

3. Enter the PO order number and choose Enter.

4. On the Standard PO xxx: created by xxx screen choose (NWBC: Menu →) Goto → Messages.

5. On the Create Pur. Order:: Output screen, select the line created for the print output and choose Repeat output.

6. In the new line, change the Medium for Output Type NEU to 5 External send.

7. Select the new line with output type NEU and choose Communication Method.

8. Change the Logical destination and enter the printer you have defined for the output via e-mail.

9. Choose Enter.

10. Choose Back (F3).

11. Save your entries.



4.4 Transferring of Components to Subcontractor

UseThe Nature of subcontracting purchase order is that company will provide components to subcontractor. This process describes how to transfer post materials to subcontractor.

4.4.1 PrerequisitesThe scope item only runs, if there is enough stock for the material to be provided to the vendor. Your have 2 options:

1. External Procurement

For this activity, run the 130: Procurement without QM scope item document in its entirety, using the master data from this scope item document.

2. Initial Stock Posting (optional):

Initial stock must be created for the following materials. You can use MMBE to check stock level.

Material Initial Stock

RAW13 (R13) 13500

RAW14 (R14) 13500



SAP ECC menu Logistics Materials Management Inventory Management Goods Movement Goods Movement (MIGO)




(SAP_BPR_WAREHOUSESPECIALIST_S)

Business role menu Warehouse Management Receiving Production Order Goods Movement

2. On the Initial Screen, enter the following data; then choose Enter:


Action Goods Receipt

Reference Other

Movement Type (Inventory Management)

561 Receipt w/o purchase order into unrestricted-use stock.

3. Choose Enter.

4. On the Goods Receipt Other-Username screen: Material tab page, make the following entries:


Material R13 First row (for item 1)



Material R14 Second row (for item 2)



5. On the Goods Receipt Other-Username screen: Quantity tab page, make the following entries:


Qty in Unit of Entry

13500



6. On the Goods Receipt Other-Username screen: Where tab page, make the following entries and choose Enter:


Plant 1000

Storage Location 1050 Stores (Lean WM)



7. Then Excise Invoice tab will appear at Header Data and here choose No Excise Entry.

8. Choose Post.

9. Go back (F3) to the SAP Easy Access Screen (SAP GUI)

Or


Result1. You have posted initial stock.

2. Financial postings:

Material Posting Key Account Description Cost Element/CO Object

Raw Material (ROH)

89 22401100 Stock of raw materials (4011)

91 L3400000 Legacy bal transfer of raw materials stocks



ProcedureOption 1: SAP Graphical User Interface (SAP GUI)

SAP ECC menu Logistics Materials Management Inventory Management Goods Movement Transfer Posting(MIGO)


1. Select Transfer Posting and Purchase Order from the two list boxes on top of the screen, enter the previously created purchase order number, and make sure that the movement type is 541.

2. Choose Execute (Enter).

3. Select the checkbox in the header data to print the material document via Output Control. Choose Collective Slip.

4. On the Where tab, in the storage location field, enter 1050. (For two item)

5. Mark X in the field Item OK, and choose Enter. (For two item)

6. Choose Check at the top of screen.

7. Choose Post.

8. Note down the created material document 5XXXXXXXXX for movement type 541 at screen bottom.


Or




(SAP_NBPR_WAREHOUSECLERK_S)

Business role menu Warehouse Management Consumption and Transfers Goods Movement

1. Choose To Purchase Order (F9), On the Reference Purchase Order enter the following data; then choose Enter:


Purchase Order <Puechase Order NUM.>

Movement Type <Movement Type> For example: 541

Plant <Plant> For example:1000

Storage Location <Storage Loc> For example: 1050


Material <Material> For example: R13

First row (for item 1)

Quantity <Quantity> For example: 13500

First row (for item 1)



Material <Material> For example: R14

Second row (for item 2)

Quantity <Quantity> For example: 13500

Second row (for item 2)



2. Choose Post.


Or


Result A message will be displayed stating that the document posted.

4.5 Creation of Subcontracting Challan

UseIt is statutory requirement to send the components to subcontractor with Subcontracting Challan.

Procedure



SAP ECC menu CIN Menu(J1ILN ) Indirect Taxes Procurement Subcontracting Subcontracting Challans Create

Transaction code J1IF01




Business role Store Keeper

(SAP_NBPR_IN_STOREKEEPER_S)

Business role menu CIN Excise Transactions Subcontracting Challan : Create



2. On the Subcontracting Challan - Create screen, make the following entries:


Material Doc. Material document number

<Material Doc.> 4900000XXX

Mat. Doc. Year

Material document year < For example, 2013

Current year

Excise Group Excise Group <Excise Group> 21

Series Group Series Group <Series Group> 40

Business Area <Business Area> 0001

3. Choose Enter.

4. On the Subcontracting Challan – Create screen, make the following entries:


Posting tab Choose

Posting date & time

Posting date and time Input date and time of material removal

Print Immediately

Print Immediately Check this box if you want challan printout immediately.

Overview Tab Choose

Preprinted No Preprinted number Enter pre-printed number if you have



5. Choose Save.

If Assessable value for Components send to vendor has not maintained System will issue an information message saying Assessable value 0 for material R13 & R14, choose Enter to confirm.

6. Note down the created document number (for example, 00004XXXXX 2010 XX)for further use.


Or


ResultA message will be displayed stating that the document posted.

4.6 Receiving Goods from Subcontracting PO

UseThe vendor delivers the manufactured products and GR is to be posted for them in the system.



SAP ECC menu Logistics Materials Management Purchasing Purchase Order Follow on functions Goods Receipt




(SAP_BPR_WAREHOUSESPECIALIST-S)

Business role menu Warehouse Management Consumption and Transfer Other Goods Movement

2. Select Goods Receipt and Purchase Order from the two list boxes on top of the screen, enter the previously created purchase order number, and make sure that the movement type is 101.

3. Choose Execute (Enter).

4. Select the checkbox in the header data to print the material document via Output Control. Choose Collective Slip.

5. If an entry in the Delivery Note field is requested, enter delivery note number.

6. On the Where tab, in the storage location field, enter 1050

7. Mark X in the field Item OK, and choose Enter.

8. On the Excise Invoice tab in the Header Data sub-area, choose No Excise Entry.



9. Choose Check at the top of screen.

The system will issue an information message with Enter delivery note for evaluated receipt settlement. Choose Enter

10. Choose Post.

11. Note down the created material document 5XXXXXXXXX for movement type 101 at screen bottom.


Or


Result1. Goods receipt is posted.



Semifinished Product

(HALB)

RAW Material

(RAW)

89 22301100 Stock of semi finished goods

96 18729001 Provisional liability-Vendor-Materials-GR/IR

91 41301100 Change in stock of semi finished goods

41301100

86 40491100 Job work charges (subcontracting)

40491100


81 40401100 Consumption of raw materials (4011)

40401100


81 40401100 Consumption of raw materials (4011)

40401100



4.7 Reconciling Subcontracting Challan

UseAfter making Goods Receipt the GR has to be reconciled with the challan sent to subcontractor.

Procedure



SAP ECC menu CIN Menu(J1ILN ) Indirect Taxes Procurement Subcontracting Subcontracting Challans Reconcile Quantity

Transaction code J1IFQ




Business role Taxation Clerk

(SAP_NBPR_IN_TAXATIONCLERK_S)

Business role menu CIN TDS Challan : Reconcile Quantity



2. On the Quantity reconciliation for Subcontracting Challans screen, make the following entries:


Material Document

Goods Receipt document number

<Material Document NO.>

5000000XXX Material Document of GR of Semi finished Material

Mat. Doc. Year

Year of document

<Mat.Doc.Year>

current year

Change as necessary

Year Current Fiscal Year <fiscal year> Current Fiscal Year

In the shown table

Challan No

<Challan NO>

0000400XXX

In the shown table



3. Choose Reconcile.

4. On the Quantity reconciliation for Subcontracting Challans screen, the system displays items from Goods Receipt at top and items from challan at bottom of screen.

5. Here you need to allocate the components consumed in GR stage are reconciled with challan to do this, choose Allocate based on FIFO.

6. Or you can do allocation by entering manually also in respective line items at bottom, where Assigned quantity filed is located in white color.

7. Choose Save


Or


Result Material document was successfully reconciled.

4.8 Completing/Reversal/Re-credit Subcontracting Challan

UseThis transaction is basically used to complete the challan if you have reconciled as stated above step. There may be cases subcontractor may not able to supply within stipulated 180 days limit then in this case also same transaction is used for reversal of challan or re-crediting the amount.



SAP ECC menu CIN Menu(J1ILN ) Indirect Taxes Procurement Subcontracting Subcontracting Challans Complete/Reverse/Recredit

Transaction code J1IF13




Business role Store Keeper

(SAP_BPR_IN_STOREKEEPER)

Business role menu CIN Excise Transactions Challan Complete/Reverse/Recredit



2. On the Subcontracting Challan – Complete/Reverse/Recredit screen, make the following entries:


Challan Number

Subcontacting challan number

<Challan NO> 0000400XXX Choose appropriate Challan

Excise year Document year current fiscal year Change as necessary

Excise group <Excise group> 21



3. Choose Enter to go to inside the challan document.

4. Choose the radio button of Complete Challan in the Posting tab page.

5. Choose Save.


Or


Result Subcontracting challan successfully completed.

4.9 Invoice Receipt from Subcontracting PO

UseThe invoice verification is done in this activity.



SAP ECC menu Logistics Materials Management Purchasing Purchase Order Follow on functions Logistics Invoice Verification

Transaction code MIRO




Business role Accounts Payable Accountant

(SAP_NBPR_AP_CLERK_S)

Business role menu Accounts Payable Posting Invoices Enter Incoming Invoice w/ PO Reference



2. If a dialog box Enter Company Code appears, enter company code 1000 and choose Enter.

3. On the Enter Incoming Invoice: Company Code XXXX screen, select 1 Invoice from the Transaction dropdown menu, then enter the following values then choose Enter:


Transaction <Transaction> Invoice

Invoice date <date of document>

Amount <value of document>

Calculate tax X

Tax Code S1

Tax Amount <value of document>

Reference <invoice number of vendor>

Business Place 1000

Section 1000

Purchase Order/Scheduling Agreement

Enter PO number

Layout Invoice reduction



4. Having the PO information extracted, enter invoice amount and tax rate.

5. If an invoice reduction is necessary, select the value Vendor Error in the Correctn ID field. After this the system will open two more fields: In the Invoice Amount Acc.to Vendor field you have to enter the amount from the invoice. In the Invoice Qty Acc. to vendor field you have to enter the quantity from the invoice, then choose Enter. Due to this data the invoice reduction is calculated by the system and you get the information message amount reduced in invoice is now XXX,XX INR, choose Enter to confirm it.

6. Choose Post.

7. Note down the number of the invoice document:

Invoice: _______________________________


Or


Result1. Invoice is posted (Blocked for payment).



Semi-finished Product (HALB)

31 16128511 Sundry creditors-Dom-Traded goods

86 18729001 Provisional liability-Vendor-Materials-GR/IR

40 26364211 Service tax on hold on services-BP 21

40 26364216 ECS on hold on services-BP 21

40 26364218 SEC on hold on services-BP 21

40 29800000 Clearing-invoice red In case of invoice reduction



In case of Invoice Reduction, the system creates a second financial document:

Material Posting key Account Description Cost Element/CO Object

21 16128511 Sundry creditors-Dom-Traded goods

Semi-finished Product (HALB)

50 29800000 Clearing-invoice red

50 26364211 Service tax on hold on services-BP 21

50 26364216 ECS on hold on services-BP 21

50 26364218 SEC on hold on services-BP 21



4.10 Reviewing invoice Receipt from Subcontracting PO

UseThe invoice verification is displayed in this activity using the list overview on invoice documents.

Procedure



SAP ECC menu Logistics Materials Management Logistics Invoice Verification Further Processing Display List of Invoice Documents

Transaction code MIR5




Business role Accounts Payable Manager

(SAP_NBPR_AP_CLERK_M)

Business role menu Accounts Payable Reporting Display List of Invoice Documents



2. On the Display list of Invoice Documents screen, enter the following values:


Company Code <CompanyCode> For example: Company Code 1 (1000)

Document Date <date of document>

Origin and Status

Flag “Invoices Verified Online”,

Remark: Could not be used in NWBC



3. Choose Execute.

4. Having the information extracted, verify Invoice Documents.

5. On the Display list of Invoice Documents list screen, choose your invoice by selecting the corresponding line.

6. Choose Follow-On Documents to display subsequent documents.


Or


If more than one subsequent document exists, a selection dialog box appears where you can choose the document type. Mark the line and choose button Choose.

ResultInvoice documents were reviewed and assigned GL-Accounts were validated.

4.11 Output Messages in Case of Invoice Reduction (Optional)

UseThe messages when posting an invoice with reduced values are not outputted automatically.If you want to output these messages you have to start the output manually.Alternatively you may also change the customizing settings for message type REKL to allow automatic output when saving the invoice.

Procedure



SAP ECC menu Logistics Materials Management Logistics Invoice Verification Further Processing Output Messages

Transaction code MR90






Business role menu Accounts Payable Posting Invoices Output Messages



2. On the Output messages in Logistics Invoice Verification screen, make the following entries:


Output Type <OutputType> Use: REKL Complaint

Processing Mode

<ProcessMode> For example :1First processing

Invoice Document

<Document number from previous step>

Fiscal Year <Current fiscal year>

Company Code <CompanyCode> For example: 1000



3. Choose Execute.

4. Select your document and choose Process.


Or


4.12 Posting Outgoing Payment

Accounts Payable (158)

UseIn this activity you will post the outgoing payment.

ProcedureUsing the master data from this document, complete all the activities described in the Business Process Documentation of the scope item: Accounts Payable (158) (Chapters Post Payments Using the Payment Program and Post Manual Outgoing payment).

5 G/L: Period-End Plant

For this activity, run the 159 – GL – Period End Closing Financial Accounting scope item in its entirety, using the master data from this scope item document.

6 Appendix

6.1 Reversal of Process StepsIn the following section, you can find the most common reversal steps, which you can take to reverse some of the activities described in this document.

Create Subcontracting Order

Transaction code (SAP GUI) ME21N

Reversal: Change Purchase Order




Business role menu Purchasing Purchase Order Purchase Order Purchase Documents

Comment If the shown purchase order number is wrong, enter the relevant PO by choosing Other Purchase Order. Select the relevant items or select all items by the button Select



All. After that push the delete button and save the purchase order.

Create Subcontracting Order







Comment If the shown purchase order number is wrong, enter the relevant PO by choosing Other Purchase Order. Select the relevant items or select all items by the button Select All. After that push the delete button and save the purchase order.



Create Outbound Delivery for Purchase Order

Transaction code (SAP GUI) VL10B


Transaction code (SAP GUI) VL02N



Business role menu Warehouse Management Shipping Outbound Delivery Change Delivery

Comment Cancel return delivery



Convert Assigned Requisitions to Purchase Orders

Transaction code (SAP GUI) ME57

Reversal: Reverse a Purchase Order





Comment If the shown purchase order number is wrong, enter the relevant PO by choosing Other Purchase Order. Select the relevant items or select all items by the button Select All. After that push the delete button and save the purchase order.



Approval of Purchase Orders


Reversal: Cancel Release of Purchase Order


Business role Purchasing Manager

(SAP_NBPR_PURCHASER_M)

Business role menu Purchasing Approval Purchasing Documents Release Purchase Order- List

Comment Select the release Code 01 and set Cancel Release. Fill the document number into the field document number (optional). In the following view Release Purchasing Documents with Release Code 01 select the PO line and the button Cancel Release.



Receive Goods from Vendor to the Purchase Order

Transaction code (SAP GUI) MIGO

Reversal: Cancel Material Document

Transaction code (SAP GUI) MBST



Business role menu Warehouse Management Consumption and Transfers Cancel Material Document

Comment If the material document number is not known, you can find it out by watching into the PO item line tab Purchase Order History (Transaction code ME22N: Materials Management Purchasing Purchase Order Change).

Invoice Receipt by Line Item

Transaction code (SAP GUI) MIRO

Reversal: Cancel Invoice Document

Transaction code (SAP GUI) MR8M



Business role menu Accounts Payable Posting Invoices Cancel Invoice Document

Comment If the invoice number is not known, you can find it out by watching into the PO item line tab Purchase Order History (Transaction code ME22N: Materials Management Purchasing Purchase Order Change).



6.2 Posting In-time Consumption of Components

UseIn case you want to post the in-time consumption of components available since Enhancement package 4 you have to activate the business function LOG_MM_OM_1 (Outsourced Manufacturing) first. Then you can post the consumption of Subcontracting components in-time (ongoing) before posting the final goods receipt. This feature is useful when the subcontracting process takes a longer time and when you want to post a regular update of the stock situation of your Subcontractor. The costs of the consumption are allocated in real time to an internal CO order. This CO has to be settled like any other production order during period-end closing.

This process of posting the in-time consumption is described here. The necessary additional configuration settings that have to be done manually are described in the appendix of the configuration guide for this scope item. In the configuration guide an additional material S138 is created for this purpose.

You would have to carry out this step before the goods receipt posting described in chapter 4.6 Error: Reference source not found using the master data modified/ created as described in the section Appendix of 138 configuration guide.

In this activity, the warehouse clerk receives a notification about the consumption of subcontracting components. The clerk then generates a goods issue referring to Subcontracting PO.

Prerequisite

To use the In-time Consumption Posting of subcontracting components, the flag ‘RT-Consumption (Real-time-Consumption’ in the info record (View ‘Purch.Org.Data 1) of the Subcontracting PO material must be set. If the flag ‘RT Consumption’ is set, the inbound delivery processing for Subcontracting PO’s is not possible.

Procedure



SAP ECC menu Logistics Materials Management Purchasing Inventory Management Goods Movements Goods Issue For Purchase Order GI for Purchase Order (MIGO)







Business role menu Warehouse Management Consumption and Transfers Other Goods Movement



2. Make the following entries:


Transaction Goods Issue

Reference Document

Purchase Order

Purchase Order <Purchase Order number> From earlier step

Movement Type <MovementType> Use 543Special stock O

3. Verify the quantity, and then choose Item OK.

4. Choose Check.

5. When the system responds with the message Document is OK, choose Post.

6. Verify the posting by using the transaction ME2SCRAP.

ResultThe system generates a goods issue document number. Record the number here: __________The transaction ME2SCRAP can be used for monitoring the consumption of subcontracting components ordered by Subcontracting PO number.

6.3 SAP ERP Reports

UseThe table below lists the most frequently used reports that help you to obtain additional information on this business process.

You can find detailed descriptions of the individual reports in the following BPD documents, which provide a comprehensive compilation of all important reports:

Financial Accounting: SAP ERP Reports for Accounting (221)

Logistics Processes: SAP ERP Reports for Logistics (222)

Note that the descriptions of some reports that are an indispensable part of the process flow may be located directly in the section where they belong.

ReportsReport title Transaction code Comment

Collective Conversion MD15 A list of possible planned orders.

Release Purchasing Documents ME28 A list with all purchasing orders.

Purchasing Group Analysis MCE1 A list with summarized data.

Vendor Analysis MCE3 Direct access to vendor-related data.

MRP List MD05 The stock/requirements situation at the time of the last planning run.



6.4 Used Forms

UseIn some of the activities of this business process, forms were used. The table below provides details on these forms.

6.4.1 ProcurementCommon form name

Form type Used in process step Output type

Technical name

Purchase Order SmartForm Step 4 NEU YBIN_MMPO

6.4.2 Goods MovementsCommon form name

Form type Used in process step Output type

Technical name

Goods Receipt (individual slip)

SmartForm Step 4 WE01 YBIN_MMGR1

Goods Receipt (individual slip with inspection text)


Goods Receipt (collective slip)


Delivery Note SmartForm Step 4 LD00 YBIN_SDDLN

Bill of Lading SmartForm Step 4 YBL1 YBIN_SDBLD

Transfer Order SAP Script Step 4 YB_LVSTAEINZEL

Complaint SAP Script Step 4 REKL YB_MM_MR_REKL
