With respect to PR, RFQ, contract, and other PO at a time.With respect to PR, RFQ, Contract, another Purchase Order.

It is confirmation from the company regarding Materials, Quantities, and Delivery details It is an ultimate documentĪ purchase order is a request to a vendor to supply certain goods or services under the stated conditions. Search for: Follow GANESH SAP SCM on WordPress.It is an outgoing document. Watch my latest video in below YouTube link and subscribe to my YouTube channel: (GBB-VBO) Consumption A/c of Components – 100 DrĪccounting entries at the time of Invoice Receipt :Īccounting entries at the time of Payment : (BSV) Change in Subcontracting Stock -140 Cr Here Dr means Debit (+Ve) and Cr means Credit (-Ve) There will be no account entries at transfer posting 541.Īccounting entries at the time of Goods Receipt 101 (&543) : Finished goods will be received with 101 and the Components will be consumed with Movement type 543. Invoice Receipt for the services performed – T Code – MIROĪccounting entries for subcontracting: Example: Components cost is 100 INR, Subcontracting Charges are 40 INR.Goods Receipt for finished product – T Code -MIGO N ote: During goods receipt, final product will be received with movement type 101 and components will be consumed automatically with 543 movement type.

Create Transfer Posting with Movement Type 541 to issue the sub components to the vendor T Code -ME2O/ MIGO.

Note: Components can be exploded through BOM (T Code CS01) or components can be given manually also.

Create subcontracting PO with item category L – T Code – ME21N Steps : ME21N -> Enter Item Category L –>, Material (End Product), PO Quantity, Delivery Date, Net Price, Plant –> Click on Item Details –> Tab Material Data - >Components, select Explode BOM –> Click on Components button –> Enter the sub components –> Go back & Save.

Create subcontracting Info record (Optional) – T Code – ME11.

Below are the steps involved in this process.

In this process, components are shared to vendor to get the final product. What is subcontracting process? Subcontracting is one of the procurement processes available in MM. I have provided brief details about Subcontracting process as per my experience.

Procurement type in sap