Subcontracting/Third-Party Order Processing

Subcontracting/Third-Party Order Processing

Use

If you carry out planning for the components to be provided for a subcontractor with an MRP area of the subcontractor type and the components to be provided are procured externally, you can process the procurement of these components using subcontracting/third-party order.

This type of processing has the advantage that the required components to be provided are delivered directly from the vendor, from whom you order this material, to the subcontractor.

Prerequisites

In Customizing for MRP, you create a special procurement key for external procurement with delivery directly to the subcontractor. For this, you enter an F for external procurement in the procurement type field. This special procurement key is the special procurement key 20 for external procurement in the standard R/3 system.

In the material master records of the components, you create the MRP area segment for the MRP area of the subcontractor and assign the special procurement key to it.

You have entered the special procurement key for subcontracting in the material master record of the assembly that the subcontractor produces.

You have made an entry in the source list for the assembly that the subcontractor produces, by entering the subcontractor as a fixed vendor and have set the indicator to 1 for relevant to MRP in the MRP field.

Features

During the planning run, the system determines the subcontractor X as the vendor for the assembly using the source list and creates a subcontract purchase requisition for the assembly.

The BOM of the assembly is then exploded. The dependent requirements of the components to be provided are assigned to the MRP area of the subcontractor X.

The system creates one or several purchase requisitions (depending on lot size) for the dependent requirements, which you can convert to purchase orders. These purchase orders are subcontracting/third-party orders.

When you display a subcontracting/third-party order, you will see the subcontractor’s address in the space for the delivery address. The SC stock indicator X for subcontracting stock is set. The item type and account assignment type fields do not contain any values.

Activities

The components to be provided are delivered directly to the subcontractor. The goods receipt is posted to the subcontracting stock.

When the subcontractor has delivered the finished assembly, the goods receipt is posted to the subcontract order. The subcontracting stock and the reservations are then reduced.