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SAP ECC 6.00

August 2007

English

V3J: MM Subcontracting

SAP AGDietmar-Hopp-Allee 1669190 Walldorf Germany

Business Process Implementation Guide



SAP Best Practices V3J: MM Subcontracting

Copyright

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Example

Note

Recommendation

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External process

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Cross-references to other documentation.

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Contents

1 Purpose............................................................................................................................................ 5

2 Prerequisites.....................................................................................................................................5

3 Process Steps...................................................................................................................................6

3.1 Process Flow Diagram............................................................................................................... 6

3.2 Process Overview Table.......................................................................................................... ..7

4 Organizational Structure................................................................................................................... 9

5 Design Considerations/Assumptions.............................................................................................. 12

6 Integration Dependencies............................................................................................................... 12

7 Financial Postings........................................................................................................................... 12

7.1 Financial Accounting................................................................................................................ 12

7.2 Management Accounting..........................................................................................................13

7.3 GL Account.............................................................................................................................. 14

7.4 Cost Element............................................................................................................................ 14

7.5 Cost Center.............................................................................................................................. 15

8 Support /Closing Considerations............................................................................................. ....... 15

9 Sample Forms................................................................................................................................ 16

10 Authorization................................................................................................................................. 22

10.1 Roles...................................................................................................................................... 22

10.2 Transaction Codes................................................................................................................. 22

11 Master Data.................................................................................................................................. 2312 Configuration Guide...................................................................................................................... 24

13 Customizing Requirements .......................................................................................................... 24

13.1 Archiving Objects................................................................................................................ ... 24

13.2 Summary of Key Customizing Objects...................................................................................24

14 Technical Requirements............................................................................................................... 25

14.1 Data Base Tables................................................................................................................... 25

15 Reports......................................................................................................................................... 25

15.1 Financial................................................................................................................................. 25

16 Potential Interfaces Points............................................................................................................ 27

17 Data Conversions ....................................................................................................................... .27

18 Enhancements.............................................................................................................................. 28

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V3J: MM Subcontracting

1 PurposeMM Subcontracting process involves sending raw components to a vendor for specificmanufacturing processes and receiving the value-added finished material back into inventory.

A Subcontract Purchase Requisition is either generated via the Material Requirements Planningprocess or manually by a requestor. A Buyer will validate the accuracy of the Purchase Requisitionand convert it into a Purchase Order. The purchase order is subject to approval based on predefinedparameters prior to being issued to a vendor.

The consumption of sent components is recorded upon receipt of the value-added finished material.The vendor sends the invoice for the services provided which is paid during the normal paymentcycle.

2 PrerequisitesYou have entered the master data required to go through the procedures of this scenario. Ensurethat the following scenario-specific master data exists before you test this scenario:

Vendor Plant Description

3000XX BP01 Sub Contract Services

Customer Plant Description

2000XX BP01 Sub Contract Services

Material Plant Description

R13 BP01 Bottom Tip

R14 BP01 Barrel Body

R15 BP01 Barrel

Price Condition

Material Plant Amount/100

S23 BP01 $135.00

Source List

Vendor Plant Description

3000XX BP01 S23

For additional details on the master data, see the V30_Master_Data_EN_US document(located on the DVD under \BBLibrary\Documentation).

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3 Process Steps

The step numbers in the Process Flow Diagram and the Process Overview Table sections refer to the steps in the BusinessProcess Procedure document for this scenario.

3.1 Process Flow Diagram

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3.2 Process Overview Table

Step Step Name ExternalProcessReference

Business Condition Role TransactionCode

Expected Results

4.1 Assign PurchaseRequisition and CreatePurchase Order

This activity assignsa purchaserequisition for plannedsubcontracting andcreates a purchaseorder.

Buyer ME57 Purchase order iscreated.

4.2 Create Outbound DeliveryRequest

Components need tobe sent to vendor

Warehouse Clerk ME2O

NOTE : this isnot supportedfor MTOspecial stockMaterials with a blank collind onmaterialmaster MRP4

Delivery is created.

4.3 Pick Confirmation Materials are pickedfor deliveries.

Warehouse Clerk VL02N Picking quantitiesare confirmed.

4.4 Post Goods Issue Delivery is ready toship.

WarehouseClerk(Shipping)

VL02N Material documenttransferringcomponents fromstorage location to“stock at vendor.”

4.5 Receive Goods fromSubcontracting PO

Receipt of goodsfrom vendor

Warehouse clerk(Material Receiver)

MIGO Material documentand accounting

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document showingreceipt of purchasedmaterial andconsumption of component(s)

4.6 Invoice Receipt fromSubcontracting PO

Capture Invoicereceived

Accounts payable MIRO Invoice documentand accountingdocument

4.7 Outgoing Payment V1C: OutgoingPayment

In this activity, youprocess the outgoingpayment.

See V1C scenario See V1Cscenario

The outgoingpayment isprocessed.

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4 Organizational Structure

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5 Design Considerations/AssumptionsThere will be a production Bill of Material (BOM) for the subcontracted materials with acorresponding subcontracting info record for procurement. Product costing will set the standard pricebased on the material master special procurement key which implies BOM components andsubcontract service charge.

6 Integration DependenciesThe MM subcontracting business process is integrated with shipping functionality when shippingcomponents to the vendor. Logistics requires component material master sales views for each plantthat will ship to the vendor. The material sales views must be created in the same sales area (salesorganization and distribution channel) as the customer master created for the vendor.

Postings can only be made in accounting periods open for posting.Postings in materials management can only be made in current and previous period. These must bein synch with open accounting periods.

7 Financial Postings

7.1 Financial Accounting

Inventory of semi-finishedmaterials

Goods Receipt / Invoice Receipt

Step Amount Step Amount Step Amount Step Amount

1 Goodsreceipt @Std

2 InvoiceReceipt @ PO

1 Goods receipt@ PO

Inventory Change -Subcontracting

Purchase PriceVariance

Step

Amount

Step

Amount

Step

Amount

Step

Amount

1 Goodsreceipt @

Std

1 Goods receipt@ PO

Inventory of raw materials Consumption - Subcontracting

Step

Amount

Step

Amount

Step

Amount

Step

Amount

1 Goodsreceipt @Std

1 Goods receipt@ Std

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Vendor Purchase Price Variance

Step Amount

Step Amount

2 InvoiceReceipt

2 Invoicereceipt(Inv>PO)

2 Invoicereceipt(Inv<PO)

Refer to V1C: AP - Outgoing Payment for all relevant financial accounting postingsrelated to payments.

7.2 Management Accounting

RESPONSIBILITY

COSTCOLLECTOR

PROFITABILITY

Refer to V1C: AP - Outgoing Payment for all relevant management accounting postingsrelated to payments.

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PPV, subcontractingconsumption,

subcontractingexpenses, Inventorychangesubcontracting byplant and invoiceverification smallupdates defaultpurchasing costcenter.

Cost Center No update

Purchase PriceVariance

Cycle count/ back flushdifference

Scrap

Revenue

Cost of Sales @ Std

Manufacturing variances

Material adjustments

Manufacturing over/under recovery

Operating Costs

Non Operating Income andExpense

Assessment:Cycle A_PA01Segment 1




7.3 GL Account

Account Number Account Text Account Group Field Status

131000 Inventory - Raw Material Balance Sheet Y010 Material Accounts

133000 Inventory - SemiFinished Goods

Balance Sheet Y010 Material Accounts

135075 Inventory - TradingGoods

Balance Sheet Y010 Material Accounts

211200 Goods Received /Invoice Received

Balance Sheet Y014 Goods/invoice receivedclearing accounts

211000 Trade Payables-Domestic

Balance Sheet Y002 Reconciliation accounts

510085 Consumption -Subcontracting

Profit and Loss Y010 Material Accounts

520085 Inventory Change -Subcontracting Profit and Loss Y010 Material Accounts

650085 Subcontracting Services Profit and Loss Y003 Expense Account with costcenter & order

Refer to V1C: AP - Outgoing Payment for all relevant management accounting postingsrelated to payments.

7.4 Cost Element

Cost ElementNumber

Name Type Category

510085 Consumption –Subcontracting

Primary 1 Primary costs/cost-reducingrevenues

520085 Inventory Change -Subcontracting

Primary 1 Primary costs/cost-reducingrevenues

530000 Purchase Price Variance Primary 1 Primary costs/cost-reducingrevenues

650085 Subcontracting Services Primary 1 Primary costs/cost-reducingrevenues

Refer to V1C: AP - Outgoing Payment for all relevant cost elements related topayments.

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7.5 Cost Center

Cost Center Number

Name Hierarchy Area Category

1201 Purchasing & Stores -Plant BP01 BP01-12 Stores G Logistics

1202 Purchasing & Stores -Plant BP02

BP01-12 Stores G Logistics

Refer to V1C: AP - Outgoing Payment for all relevant cost centers related to payments.

8 Support /Closing ConsiderationsInfo Records

TransactionCode

Comments

ME11 Ensure that the info record is created as a subcontracting info recordand not a standard info record.

Material

TransactionCode

Comments

MM02 In MRP 2 view, special procurement key 30 needs to be assigned.Procurement type needs to be set to “F” in the same MRP 2 view.

Bill of Material

TransactionCode

Comments

CS01 A bill of material must exist in order to ensure the correct productcosting is calculated.

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9 Sample Forms

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Purchase Order

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Goods Receipt Slip

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Debit Memo

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10 Authorization

10.1 Roles

Not applicable.

10.2 Transaction Codes

MaterialsManagement Transaction Code

Description

Purchasing

ME57 Assign and Process

Reporting

ME2O SC stocks per Vendor

Logistics Execution

Inbound Process

VL02N Inbound delivery

LT12 Confirm TO One step

MaterialsManagement

Follow on functions

MIGO Goods receipt

MIRO Logistics Invoice Verification

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11 Master Data

Material master (ROH) – V3E, V3I with the following exception:

Material Type Org. Level View

ROH Plant MRP 2

Field Description Comment

MARC-BESKZ Procurement type F - Procurement

MARC-LGPRO Special Procurement 30 - Subcontracting

Material master (HALB, FERT) – V4H/I/J, V5B with the following exception:

Material Type Org. Level View

ROH Plant MRP 2


MARC-BESKZ Procurement type F - Procurement

MARC-LGPRO Special Procurement 30 - Subcontracting

Purchasing info record - V3E with the following exception:

Info category Org. Level View

Standard Purch Org Initial Screen (Create Only)


RM06I-NORMB Info Category Subcontracting

Purchase tax code condition record - V3E

Bill of material - V5B

Vendor master (KRED) - V3E, V3I

GL Account - V3E

Cost Element - V3E

Cost Center - V3E

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12 Configuration GuideNot applicable

13 Customizing Requirements

13.1 Archiving ObjectsObject

IDObject Step

Transactioncode

Step Description Notes

1Bill of Materials – Universal BOMusage

1

2

3

1Vendor material info record -subcontracting

1 ME16 Flag for deletion

2 ME17 Archive vendor material info record MM_EINA

3 OMEO Reset number ranges

13.2 Summary of Key Customizing Objects

Table Description

T030K Tax Accounts Determination

T030R Rules for Determination of Standard Accounts

V_024 Purchasing Groups

V_169G Tolerance Limits

V_T001L Storage locations

V_T001W Plants

V_T008 Payment Block Reasons

V_T024D MRP Controllers

V_T320 MM-IM Storage Location <-> LE-WM Warehouse Number

V_TKA3A Automatic Acct. Assignment - Default Assignments

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14 Technical Requirements

14.1 Data Base Tables

Area Table Description Type

XX XXXX Transaction / MasterData

15 Reports

15.1 Financial

Transaction Report Name Description / Usage Scenario

F110 Payment List List of payment activity for apayment run

V1C

FCHN Check Register Display all issued and voidedchecks. Will also show outstandingchecks - if check encashment ismaintained

V1C

FBL1N Vendor Line itemDisplay

Vendor Account analysis V3E, V3J, V3H,V3I, V4G, V1B,V1C, V1A

S_ALR_87012078 Due Date analysis for Open Items

Summary by Vendor open items V3E, V3J, V3H,V3I, V4G, V1B,

V1C, V1A

MIR5 Display list of Invoices Invoice Analysis V3E, V3J, V3H,V3I, V4G

MR11 Maintain GR/IRclearing account

Clear open items V3E, V3J, V3H,V3I, V4G

MRBR Blocked invoices Change/Delete Blocking reasons V3E, V3J, V3H,V3I, V4G

S_ALR_87012082 Vendor balances inLocal Currency

V3E, V3J, V3H,V3I, V4G

S_ALR_87012093 Vendor Business Summary of purchase amount by

Vendor

V3E, V3J, V3H,

V3I, V4GS_ALR_87012103 List of Vendor Line

ItemsV3E, V3J, V3H,V3I, V4G

S_ALR_87012277 G/L Account Balances Show G/L account balances V3E, V3J, V3H,V3I, V4G

S_ALR_87012282 G/L Line Items, Listfor Printing

Show G/L account line item activity V3E, V3J, V3H,V3I, V4G

S_P00_07000134 Generic Withholding Report 1099 activity to Vendors V3E, V3J, V3H,

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Tax Reporting (1099 forms) and government (file) V3I, V4G

ZFI002 Purchase PriceVariance byVendor/Material

Display all activities occurred inPPV account and the link to thepurchase order


FAGLL03 GL Line item Display(New GL)

GL Account analysis V3E, V3J, V3H,V3I, V4H, V4I,V4J, V4F, V4E,V4C, V4D, V4G

S_ALR_87012172 Customer balances inLocal Currency

V4H, V4I, V4J,V4F, V4C,V4D, V4G

S_ALR_87012168 Due Date analysis for Open Items

Summary by Customer open items V4H, V4I, V4J,V4F, V4C,V4D, V4G, V1D

FBL5N Customer Line itemDisplay

Customer Account analysis V4H, V4I, V4J,V4F, V4C,V4D, V4G, V1D

S_ALR_87012394 Record of Use andSales Tax (USA)

Show US sales and use tax datathat can be reported to governmentagencies


S_ALR_87012197 List of Customer LineItems


S_ALR_87012284 Balance Sheet / ProfitLoss Statement

Show company Balance Sheet andIncome Statement

V1J

15.1.1 Procurement


MB51 Material document list V3E, V3J, V3H,V3I, V4G

MB52 Stocks of materials V3E, V3J, V3H,V3I, V4G

MCE1 Purchasing Group V3E, V3J, V3H,V3I, V4G

MCE3 Vendor V3E, V3J, V3H,V3I, V4G

MD04 Stock RequirementList


MD05 MRP List V3E, V3J, V3H,V3I, V4G

MD15 Convert PlannedOrder to PO

Will also show stock in transit withvalue


ME1P PO Price History Summary by Purchasing group V3E, V3J, V3H,

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V3I, V4G

ME28 Release PurchasingDocuments

Summary by Vendor V3E, V3J, V3H,V3I, V4G

ME2L PurchasingDocuments byVendor


ME49 Quotation price complist


ME57 Assign and processPR


ME5A List Display of PurchaseRequisitions


ME6H Vendor Evaluation Collective Release V3E, V3J, V3H,V3I, V4G

ME80FN General Analysis PO Analysis V3E, V3J, V3H,V3I, V4G

ME81N Analysis of Order Values


MMBE Stock overview V3E, V3J, V3H,V3I, V4G

ZMM007 Check Run for Archive Materials

List of Purchase requisitions in thesystem


16 Potential Interfaces PointsInterface Description Third party Software

(Y/N)Middleware required

(Y/N)Manual SolutionAvailable (Y/N)

External Freightdetermination

Y N Y

Electronic DataInterface

Y Y N

USA Sales and Use tax Y Y Y

17 Data Conversions

DataDescription

Data Level Sequence

LSMW Object Data File

XXXXXXXXXX

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18 EnhancementsScenario Specific Description

Procurement No Functional Enhancements required in theBaseline Solution