Subcontracting with Scheduling Agreements in PP/DS

Purpose

In subcontractingthe product that is to be procured is manufactured by an external vendor ( source location).

Prerequisites

The prerequisites for subcontracting with APO scheduling agreements are as follows:

Data in SAP R/3

The following data must be available in SAP R/3:

Subcontracting scheduling agreement

In SAP R/3, you must create a scheduling agreement for the finished product with the item type Subcontracting . For scheduling agreements with the document type LPA planning in SAP APO is defined ( External Planning , in the additional data).

Material masterfor end product and subcontracting components

Bill of material

Routingor master recipe

Vendor(subcontractor)

The integration model must contain the following:

Material

Subcontracting components

Plants

Scheduling agreements

Stocks

Purchase orders/purchase requisitions

Work centers

Vendors

Production process model(PPM of type Subcontract PPM ) or production data structure(PDS)

For more information about the production data structure, see Production Data Structure Generated from R/3 Master Data

This graphic is explained in the accompanying text.

You should also note that the R/3 routing or the R/3 master recipe must be transferred as a subcontractor PPM so that it is created in the subcontractor location in SAP APO.

For more information, see Integration of Master Data and Transaction Data

Data in the SAP APO System

The following data must be available in SAP APO:

External procurement relationship(type: subcontracting) and transportation lanes (from subcontractor to plant) for the finished product.

See: External Procurement Relationship

Transportation lanesfrom the plant to the subcontractor for each subcontracting component

See: Transportation Lane and Automatic Creation of Transportation Lanes

Location of Type Subcontractor

This is only necessary if the subcontractor processes the same product for more than one plant. In this case, you must manually create a location of type subcontractor for each plant-vendor combination.

Production process model

See: Production Process Model

Product masterin the subcontractor location for the end product and all components

This graphic is explained in the accompanying text.

When goods movements relating to subcontracting scheduling agreements, such as goods receipt or cancellation, PP/DS planning in the subcontractor location is automatically carried out in SAP APO. This planning adjusts the planned orders to meet the requirements in the scheduling agreement.

So that the planned orders can be reduced after goods receipt you must not enter a planning time fence in the product master of the end product. If you do enter a planning time fence, the system does not adjust the planning orders in planning.

You must also enter a suitable PP/DS Horizon in the product master, on the PP/DS tab page.

You can use the Customer ExitAPOCF012 (EXIT_/SAPAPO/SAPLCIF_PPM_001) you can automatically create the product masters when the subcontractor PPM is transferred and you can automatically assign models. For more information and for example coding see SAP Note 483358.

For more information on the prerequisites, see Prerequisites for the APO Scheduling Agreement

For more information about subcontracting in SAP APO see Subcontracting with Source Location in PP/DS

Process Flow

The following graphic illustrates the process of subcontracting with provision of the necessary components.

This graphic is explained in the accompanying text.

Planning in SAP APO

Planning in the plant (target location)

In automatic or interactive planning, a subcontracting scheduling agreement is determined as the source of supply to cover a product requirement (end product).

For this requirement, an external procurement order (receipt), in other words, a schedule line for the scheduling agreement item (category SchLne) is created in the plant.

This receipt generates a requirement (SchAgrReq) in the subcontractor location.

Planning in the subcontractor location (source location)

If a PPM as source of supply for the end product is available in the subcontractor location, the planning run generates a planned order(receipt of category PlOrd.) for this requirement.

This graphic is explained in the accompanying text.

In subcontracting with purchase requisitions and purchase orders the planned order is automatically created when the schedule line (SchAgrReq) is created.

In subcontracting with scheduling agreements, the planned order is not created until the first planning run.

The system automatically creates dependent requirements (of the category DepReq) for subcontracting components. Depending on the location type of the transportation lane of the subcontracting components, stock transfer reservations (of the category StkTrfRes) are generated if you provide components, or purchase requisitions are generated, if another vendor delivers the components to the subcontractor.

Create releases in SAP APO

Scheduling agreement releases ( operative delivery schedules or forecast/delivery schedules) are then generated and output in SAP APO for these schedule lines. (See Creating Scheduling Agreement Releases and Outputting Scheduling Agreement Releases ).

The scheduling agreement schedule lines are transferred to the SAP R/3 system when the releases is created or output. Here, BOM explosion is carried out, on the basis of the R/3 BOM.

This graphic is explained in the accompanying text.

You should note that the subcontracting components in SAP APO are determined on the basis of the components included in the PPM whereas the BOM explosion in SAP R/3 is carried out on the basis of the R/3 BOM.

You can either transfer the PPM from SAP R/3 to SAP APO or create the PPM directly in SAP APO.

You can also changes the components in the BOM in SAP R/4, independently of SAP APO.

You should therefore ensure that the components in SAP APO and SAP R/3 are maintained identically.

Send subcontracting components in SAP R/3 to the vendor

Transfer postingof the subcontracting components takes place according to the R/3 subcontracting process.

Using the function SC Stock Monitoring for Vendor, you can create either a transfer posting or a delivery for the necessary subcontracting components. Because this delivery is not MRP-relevant, it does not appear in SAP APO.

The transfer posting increases the stock of material provided to the vendor and reduces the stock in the plant. The stock changes are transferred to SAP APO.

For more information on the R/3 subcontracting process see the documentation for the SAP R/3 Enterprise Application Components under Logistics → Materials Management (MM) → Inventory Management (MM-IM) → Managing Special Stocks →

http://help.sap.com/saphelp_470/helpdata/en/4d/2b8fed43ad11d189410000e829fbbd/content.htmSubcontracting .

Post goods receipt for the end product in SAP R/3

You receive the end product from your subcontractor. You post goods receipt in SAP R/3. At the same time, goods issue for the subcontracting components at the subcontractor’s plant is posted. The stock of material provided to the vendor is reduced accordingly.

The data is automatically transferred to the SAP APO system. In SAP APO the stock of the end product increases, the stock of subcontracting components decreases and the schedule line and release are reduced/canceled out.

In addition, planning is automatically triggered in the subcontractor location in SAP APO. This planning adjusts the planned orders to the new requirements situation.

This graphic is explained in the accompanying text.

A default setting in Customizing for Production Planning and Detailed Scheduling (PP/DS) under Maintain Planning Procedures defines that planning in the subcontractor location is triggered automatically. The event Stock Posting for SAP APO Subcontracting Scheduling Agreement is set to trigger Start Product Heuristic Immediately .

Post invoices/credit memos in SAP R/3

Invoices received are posted in the OLTP system. If the OLTP system is an SAP R/3 system, you can also use the Evaluated Receipt Settlement (ERS) function.

For more information, see Inbound Delivery, Goods Receipt and Invoice/Credit Memo

Activities

Functions in SAP R/3

Logistics → Materials Management → Purchasing → Outline Agreement → Create Scheduling Agreement or Change Scheduling Agreement.

Materials Management → Purchasing → Outline Agreement → Scheduling Agreement → Schedule Lines ( Items → Components → Overview )

Materials Management → Purchasing → Purchase Order → Reporting → SC Stocks per Vendor

Materials Management → Material Master → Material Create or Change

Logistics → Production → Master Data → Bills of Material → Create Material BOM

Production → Master Data → Routings

Logistics → Central Functions → Supply Chain Planning Interface → Core Interface Advanced Planner and Optimizer

Functions in SAP APO

Advanced Planning and Optimization→ Master Data → Location → Product

Advanced Planning and Optimization→ Master Data → Production Process Model

Advanced Planning and Optimization→ Master Data → Transportation Lane

Advanced Planning and Optimization→ Master Data → Procurement Master Data → Procurement Relationship

For more information about subcontracting in SAP APO see Subcontracting