Direct Production, Subcontracting, Phantom Assemblies

Use

Direct production

If you create a production order for a material whose BOM contains materials with a special procurement type for direct production, further orders for the production of the material will be created automatically. The planned costs are calculated separately for each order in the order network.

In material costing, materials with a special procurement type for direct production are regarded as semifinished products. They are costed and the cost estimate results are updated for the respective materials.

Phantom assemblies

If a material is flagged as a phantom assembly (meaning that the material has a special procurement type with procurement type In-house production and special procurement Phantom assembly ), costing explodes the BOM and calculates the planned costs for all the material components in the phantom assembly. These material components are displayed and updated in the cost estimate of the higher-level material. The results of the cost estimate are also updated with reference to the phantom assembly.

If you want to cost a material as a phantom assembly, you must enter special procurement type 50 in the MRP view of the material master record and leave the special procurement type empty in the Costing view.

Subcontracting

If subcontracting has been specified for a material (meaning that it has a special procurement type External procurement and special procurement Subcontracting ), you can define a strategy in the valuation variant in Customizing for Product Cost Planning to access a price in the purchasing info record or in the purchase order. For more information, see Determining Vendors .

The subcontracting company can be selected either using the planned quota arrangement or the actual quota arrangement in the purchasing system. You determine which quota arrangement is used as the basis in the valuation variant.

With subcontracting, the cost estimate contains the production costs of the subcontractor as well as the material costs of the material components provided by the subcontractor.

See also:

For more information, see the following sections in the SAP Library: