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SAP Functional, Basis Components, and ABAP Programming Books

Subcontracting Processing

When a main BOM item is a subcontract item (in the item category field of PO/PR line item, the value is "L"), then the system will automatically know that the sub items need to be issued out.  Such issue, from the internal system processing view point, is only a transfer from one storage location to the subcontractor vendor storage location rather than a consumption.  It will only be deemed a consumption when the parent item is received back from the vendor.  The system will automatically track all the items sent to the vendor waiting to be receieved back.

The following are the pre-requisite procedure for handling subcontract items:

The following are subcontracted related procedures: Invoke transaction ME2O Subcontract Posting

Material Document
101 +       Receive in the new Material after sub-contract
543 -       Clear the quantity in Material Provision for Vendor

Accounting Document
Debit     Inventory - New Part                         150
Credit    Inventory - Purchase Offset                150

Debit     Service cost for sub-contract                 50
Credit    GR/IR - Inventory                                 50

Debit     ROH - Material Consumed                 100
Credit    ROH - Material Consumed                 100

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