The document discusses subcontracting processes in SAP. It describes the purpose as managing subcontracting by reducing stock and costs while increasing efficiency. Key steps include converting purchase requisitions to purchase orders, shipping components to subcontractors, posting goods receipts with component consumption, invoice verification, and billing. The document provides diagrams of the subcontracting process flow and interactions between various roles.

1. Subcontracting
16th
JAN,2017

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Purpose, Benefits, and Key Process Steps
Purpose
 Subcontracting Process
Benefits
 Reducing stock and cost, increasing efficiency
 Combination of third-party process with subcontracting functionality
 Invoice from subcontractor based on external services
Key Process Steps
 Convert Purchase Requisitions to Purchase Order
 Shipping of components to subcontractor
 Post Statistical Goods Receipt with consumption of components
 Invoice verification
 Billing

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Subcontracting Process flow

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BOM – Item Overview

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MRP 4

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Create Subcontract PIR

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Subcontract - PIR

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PO -
Type t-code : ME21N

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Subcontract - PIR
BOM
Explosion

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Transfer Posting – Movement Type 541
BOM
Explosion

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Goods Receipt

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Display Document - GR

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Invoice Verification

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Process Flow Diagram
Third-Party Order Processing for Subcontracting
Sales
Administrator
Purchasing
Manager/
Purchaser
AccountsPaya
/Receivable
Accountant
Sub-
Contr.
Ware-
houseClerkCustomer
Billing
Drop Ship
Product to
3rd Party
Send
Shipping
Notification/
Confirmation
Incoming Vendor
(Subcontractor)
Invoice
Customer
Request for
Material
Order
Confirmation
Create Sales
Order
Auto-generates a
SC Purchase
Requisition
Display List of
Purchase
Requisitions to
Be Assigned
Convert
Assigned
Requisitions to
SC Purchase
Orders
Approval of SC
Purchase
Orders
AP–Outgoing
Payment
(158)
COGS Vendor Invoice
Receipt
Post Statistical Goods Receipt for
SC Purchase order
incl. consumption of SC components
(Optional)
Change Order
Quantity
AP = Accounts Payable, COGS = Cost of Goods Sold, GR = Goods Receipt
AR–
Incoming
Payment
(157)
Billing
Document
Sales:
Period End
Closing
Operations
(203)
Billing
Administrat
or
Create
Outbound
Delivery
Request
for SC
components
Pick
Subcontracting
components
Post
Goods Issue
into SC stock

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