Subcontracting in Inventory Management 

Use

The following functions are supported in Inventory Management:

  • Provision of components

The components that are provided to the subcontractor are managed as stock provided to vendor. In Inventory Management, the provision represents a transfer posting from unrestricted-use stock to the stock of material provided to vendor. Components in a subcontract order that are consumed can only be debited from the stock of the material provided to the particular vendor.

  • Goods receipt of the end product (with consumption of the components)

You post the goods receipt for the end product with reference to the subcontract order item. At goods receipt, a consumption posting for the components is also made from the stock of material provided to vendor. For each goods receipt item, the system copies the components with their quantities as goods issue items. If the vendor (subcontractor) consumed a greater or smaller quantity than was planned in the purchase order, you can adjust the component quantity at goods receipt.

  • Subsequent adjustment for over/under consumption

If the vendor only tells you after the goods receipt has been posted that a greater or smaller quantity of the components was consumed than had been planned in the purchase order, the difference must be posted as a subsequent adjustment.

  • Transfer postings

You can carry out the following transfer postings for stock of material provided to vendor:

    • Plant to plant in one step (301)
    • Material to material (309; also refer to

Entering Transfer Postings From Material to Material)