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 Subcontracting Without Source Location in PP/DS

Purpose

In planning without a source location, the in-house-production order is generated in your own plant. The requirements and stocks are MRP-relevant in your own plant. The transportation of the components to be provided to the subcontractor cannot then be planned.

You can make use of this scenario if you are collaborating with just one subcontractor or if you allow just procurement on a subcontracting basis for a product.

Prerequisites

The system plans in the destination location if no location-specific product master record exists for the ordered product (e.g. packed screws) for the source location.

The following master data must have been created in the SAP APO system:

  • Transportation lane for the ordered product

    If a purchasing info record or a contract item of the category subcontracting is transferred from the SAP R/3 system to the SAP APO system via CIF, a corresponding transportation lane is automatically created. The Subcontracting indicator is set in the master data for this transportation lane.

  • Production process model (PPM) in the destination location

    A PPM and at least one resource must exist in the destination location because at least one resource and at least one operation must be assigned to the PPM. The PPM must also be active. You can transfer the PPM, the resources, and the operations via CIF.

Process Flow

Subcontracting without a source location takes place as follows:

  1. In the planning run, the SAP APO system determines a subcontractor as the source of supply for a product requirement. The SAP APO system generates an order within the destination location (your plant). The system also determines a valid PPM in the destination location and uses it to generate an in-house-production order for the ordered product in the destination location.

    A subcontracting requisition, which takes the subcontracting components (materials provided to the subcontractor) from the in-house-production order, is generated in the SAP R/3 system.

    Note Note

    The order and the in-house-production order in the APO system correspond to the subcontracting requisition in the SAP R/3 system and are therefore assigned the latter’s document number.

    End of the note.

  2. The subcontracting components for the in-house-production order are then planned in the SAP APO system. However, the subcontracting components are MRP-relevant in your own plant – not (as in the case of subcontracting with a source location) at the vendor’s site.

  3. The subcontracting requisition is converted into a subcontract order. An order and an in-house-production order corresponding to this subcontract order are created in the SAP APO system.

  4. Postings are made transferring the subcontracting components from ”plant stock” to ”stock of material provided to vendor” (subcontracting stock/stock with subcontractor) in the SAP R/3 system. This ”stock of material provided to vendor” is MRP-relevant in your own plant.

  5. In the SAP R/3 system, the goods receipt is posted against the subcontract order and the data transferred to the SAP APO system. There the PO quantity is reduced by the GR quantity, the subcontracting components are retroactively booked out of ”stock of material provided to vendor”, and the stock of the ordered product increases.