INTERNAL SUB-CONTRACT PROCESS

Internal Sub-Contracting

Business Process Activities to be followed

Modules Involved: MM, SD, PP and FICO

Pre-Requisites of Master Data:

Materials Management:  Master Data in Both Plants

1.       Material Master Should be available in both Plants

2.       Valuation Category is mandatory in accounting view in split valuation

3.       Extend Valuation Type for Materials

4.       Vendor Master should be created with ZPLT account group

5.       Vendor master need to be assigned with customer

Sales and Distribution:

6.       Receiving Plant as Customer

Note: Vendor needs to be updated in customer master

7.       Material Sales Views

8.       Service Material

Production Planning and Control:

1.       Material Master need to be available in both plants (MRP Views)

2.       Bill of Material Need to be available in both Plants

3.       Work Centres/ Resources must be available in Production Plant

4.       Routing/ Master Recipe must be available in Production Plant.

Business Process flow:

Materials Management:

1.       Creation of Purchase Order

Transaction Code: ME21N

Field Name	Input Value in the field	Description
Vendor	XXXX	Internal Sub Contract Vendor
Document Type	XXXX	Sub-Contracting Document Type
Item Category	L	Sub-Contracting
Materials		SFG
Organisation Data		Pur. Organisation/Pur. Group/Company Code
Payment Terms		Sub-Contracting Payment terms
Item Level		Material/Qty./ Net Price(Job Work Charges)/ Plant
Invoice	V0	Assign Tax Code
Reason for Order		Reason for Order
Explode BOM		Explode BOM

2.       Transfer Posting

Transaction Code: MB1B

Field Name	Input Value in the field	Description
Document Date		Document Date
Posting Date		Posting Date
Movement Type	541	Transfer Posting to Stock with Sub-Contractor from Un-restricted
Plant		Issuing Plant

Note-1:  Select “To-Purchase Order” Tab and choose Purchase Order number and Item Number and select “Enter” button on the bottom of the screen.

Note-2: Assign “Storage Location” and “Batch Numbers” and select “Adopt + Details” Tab on the top of the screen and click on the “Save” Button on the top of the screen

Sales and Distribution:

3.       Creation of Sales Order

Transaction Code: VA01

Field Name	Input Value in the field	Description
Sales Order Type	XXXX	Internal Sub Contract Order
Sales Area	XXXX/XX/XX	Central Sales Org./ STO sales/Common Division
Customer	XXXX	HBL VSEZ
Materials		SFG/Service Materials
Plant	XXXX	Production Plant
Procurement Type	ZKE	Internal Sub Contracting  Requirement Type
Price		Maintain Price for SFG/Service Material

Material Management:

Transaction Code: MIGO

Note-1: Goods Receipt against Sales Order with Movement Type 501E in Production Plant

Production Planning and Control:

4.       Creation of Production Order against Sales Order in Production Plant

Note: If the Material is Process Ordered, then a Planned Order must be created with respect to sales order and then the planned order needs to be converted to Process Order.

Pre-Requisites for Creation of Planned Order:

Field Name	Input Value in the field	Description
Planned Order Profile	LA	Stock Order
Material Number		Material Number for which Sales Order has been raised
Planning Plant	XXXX	Plant for which Sales Order raised
Order Quantity	100 kg	Sales Order Quantity
Start Date		Start & Finish Date
End Date
Production Plant	XXXX	Plant at which production is carried out
Storage Location	XXXX	Storage location where the material is being receipted
Account Assignment Category	E	Ind. Cust.W. KD-CO
Sales Order Number	XXXX	Sales Document Number
Line Item	XXXX	Sales Order Line Item Number

5.       Goods Issue against Production/Process Order with Movement type 261 (Only the respective Sales Order Materials can be issued)

Note-1:  If the material from the respective production plant is being consumed then the material must be first transferred to the sales order and then the consumption needs to be taken place

Note-2: No accounting document is being generated during consumption of the materials against the production/Process Order

6.       Confirmation of Production/Process Order

7.        Goods Receipt against Production Order/Process Order with Movement type 101 (With respect to sales order in Production Plant)

Note-1: The material need to be receipted against the Production/Process Order in the respective Production Plant.

Note-2: No accounting document is being generated during receipt of the materials against the production/Process Order

Transaction Codes to be followed:

Transaction Code	Description
CO08	Creation of Production Order against Sales Order (Direct)
MD11	Creation of Planned Order
COR7	Conversion of Planned Order to Process Order
CO15	Confirmation of Production Order
CO11N	Operation wise Confirmation of Production Order
CORK	Confirmation of Process Order
COR6N	Operation wise Confirmation of Process Order
MIGO	Goods Receipt against Production/Process Order

Sales and Distribution:

8.       Outbound Delivery

Transaction Code: VL01N

Field Name	Input Value in the field	Description
Shipping Point	XXXX	Shameerpet Shipping Point
Selection Date		Delivery Date
Sales Order Number		Sub-Con. Sales Document Number
Line Item	0010	Sales Order Line Item Number
Delivery Quantity	100 kg	Delivery Quantity
Plant	XXXX	Plant at which production is carried out
Storage Location	XXXX	Storage location where the material is being receipted
Picking Quantity		Deliverable Quantity
Batch Number		Unique Batch Number

Material Management:

9.       Goods Receipt:

Transaction Code: MIGO

Note-1: Goods Receipt against Purchase Order with Movement Type 101 in Receiving Plant

10.   Billing

Transaction Code: VF01

Field Name	Input Value in the field	Description
Sales Order Number		Sub-Con. Sales Order Number

Note: Order related billing for service charges

Finance and Controlling:

11.   Release Commercial Invoice to accounts