Subcontracting Procedure (SAP Library - Material Requirements Planning (PP-MRP))

Subcontracting Procedure

Prerequisites

You have set the special procurement key Subcontracting in the material master (MRP 2 view) for the finished product or assembly that is to be produced by the subcontractor.

You have entered the subcontractor in the source list or in the quota arrangement for this assembly. If you do not use quota arrangements, you have to set the Record relevant to MRP indicator in the MRP column of the source list.
You have set the Scheduling info record/agreement indicator in Customizing for MRP in the IMG activity Define external procurement.

Process Flow

If a requirement exists for the finished product or assembly, the planning run generates a purchase requisition with item category L (subcontracting) or a planned order with special procurement Subcontracting. This planned order is converted into a purchase requisition with item category L.

You can see the item category or the special procurement type when you display the MRP element in the stock/requirements list or in the MRP list.

At the same time, the system explodes the BOM for the finished product or the assembly. Dependent requirements for the components are generated at finished product level either at the start date of the planned order or at the release date of the purchase requisition.

These dependent requirements are included in the net requirements calculation as special dependent requirements (MRP element SubReq). However, if you make changes to quantities or dates, you can do so in the same way as for normal dependent requirements.

The system then determines the source of supply, that is, the subcontractor, using the source list or quota arrangement and source list (see also Determining the Source of Supply for External Procurement).