Subcontracting
Subcontracting allows you to order a product from a supplier who requires certain components to manufacture this product. The components are provided by the ordering party. They are consumed or transformed during the production.
The subcontracting components you provide to the supplier are based on a bill of material for the product that is stored in the SAP ERP system. Therefore, subcontracting in the SAP Supplier Relationship Management (SAP SRM) system is limited to fulfilling requirements that are based on purchase requisitions created in SAP ERP where the component data is available.
The component information is routed through the procurement process in SAP SRM. In sourcing, the subcontracting requisition can be sourced against a suitable subcontracting contract.
Goods issue of the components as well as goods receipt for the product is carried out in the SAP ERP system.
Integration
This function is used in the following business scenarios:
Public Sourcing and Tendering
Contract Management and Administration
Operational Procurement
Prerequisites
You have activated the business function SRM, Cross-Industry Functions (SRM_CROSS_INDUSTRY_1
). Note that you can only use this business function in conjunction with
the business function SRM, Procurement for Public Sector (SRM_PUBLIC_SECTOR_1
). In other words, you must activate both business functions.
In Customizing for SAP ERP, you have activated restricted subcontracting under 
Public Sector Management
Procurement for Public Sector
Activate Restricted Subcontracting
.
Features
You can create a bill of material for a product in the SAP ERP system. It automatically provides the components for a subcontracting purchase requisition (line item type
L
).The system routes the subcontracting purchase requisition through the procurement process in SAP SRM (if you use the extended classic scenario with PPS functionality).
In SAP SRM, you can create a contract line item as a subcontracting line item. This line item can then be used as source of supply for a subcontracting purchase requisition.
In SAP SRM, you can display the subcontracting components, but you cannot change them.
After the purchase order is replicated to the SAP ERP system, follow-on activities, such as inventory management activities, can be carried out there.