Show TOC

 Outsourced Manufacturing 2 in ERP Operations

 

Technical Data

Technical Name of Business Function

LOG_MM_OM_2

Type of Business Function

Enterprise Business Function

Available as of

SAP Enhancement Package 5 for SAP ERP 6.0

Technical Usage

Central Applications

Application Component

Materials Management (MM), Sales Order (SD-SLS-SO), Batch Management (LO-BM))

Directly Dependent Business Function Requiring Activation in Addition

This business function enables you to structure your outsourced production steps and subcontracting process more efficiently. This SAP solution provides full support for batch tracing, multilevel subcontracting, and third-party order processing for subcontracting, and enables external capacity planning for your third-party orders.

Prerequisites

You have installed the following components as of the version given:

Type of Component

Component

Is Needed Only for the Following Features

Software Component

SAP_APPL 605

  • If you want to use external third-party order planning, you must activate the business function SCM-APO, Third-Party Order Planning in APO (SCM_APO_DRS_PLAN) in the SAP Supply Chain Management system (SAP SCM, enhancement package 1 for SCM 7.0), and set up the prerequisites for the SAP Advanced Planning and Optimization component (SAP APO).

    For more information, see the documentation for the business function SCM-APO, Third-Party Order Planning in APO (SCM_APO_DRS_PLAN) in SAP Library for SAP SCM on SAP Help Portal atStart of the navigation path http://help.sap.com/scm Next navigation step SAP Supply Chain Management Next navigation step SAP SCM Enhancement Packages Next navigation step Enhancement Package 1 Next navigation step Business Functions (SAP Enhancement Package 1 for SAP SCM 7.0) Next navigation step Business Functions in SAP APO End of the navigation path.

  • For more information about activating the individual functions in Customizing, see the relevant detailed release notes for the main release note LOG_MM_OM_2: Outsourced Manufacturing 2 in ERP Operations (New).

Features

Batch Tracing

The subcontract order provides a detailed batch where-used list with exact information about the assignment of finished batches and component batches.

The assignment can now be displayed in the batch where-used list after goods receipt. For a detailed display, you must set the Multi Batch Evaluation indicator on the initial screen of the batch where-used list.

Subsequent adjustments to the component consumption can now be made with reference to the finished batch.

If you work with inbound deliveries, you can enter the detailed batch information in the inbound delivery. The subsequent goods receipt is then automatically posted with this batch information.

If you use SAP Supplier Network Collaboration (SAP SNC), your vendor can also enter the detailed batch information in the SAP SNC system. The data can then be posted automatically to your SAP ERP system.

Multilevel Subcontracting

This function allows you to create a purchase requisition automatically for multiple vendors. The subcontractor in the lower level is notified to send the finished product directly to the next vendor or subcontractor. The entire supply chain can be monitored on the basis of the purchase requisition number.

Third-Party Order Processing for Subcontracting

You can use the standard functions for third-party order processing with this enhancement for ordering products that are finished by a subcontractor and sent directly to the end customer. When a third-party order is created, the system can now automatically create a purchase requisition for subcontracting. The information required for shipping to the end customer (such as delivery address) is transferred to the purchase requisition.

Third-Party Order Planning

You can use external capacity planning for third-party orders in third-party order processing. This lets you take account of the vendor's capacity restrictions.

In the SAP Enterprise Resource Planning (SAP ERP) back-end system, when you create the sales order using the item category and corresponding schedule line categories from Customizing, you determine whether or not a sales order item is a third-party item for which planning takes place in SAP Supply Chain Management (SAP SCM). You can use a Business Add-In (BAdI) to specify customer-specific criteria for which the system checks whether external planning should take place for a third-party item, and the system determines the item category accordingly.

The SAP ERP system creates the third-party requisition for planning-relevant items, blocks it, and transfers the data to the SAP SCM system. Planning then takes place in the SAP Advanced Planning and Optimization component (SAP APO). When the planner releases the third-party requisition in SAP SCM, the SAP ERP system removes the block so that you can create a purchase order and complete third-party order processing.