Subcontracting process in Production

Create BOM for header material as shown below with CS01 with three components as input materials.

Create routing for material with three operations and for second operation assign control key PP02 as shown below
No need to maintain the work center for the second operation

For the second operation assign external processing parameters as shown below.
Enter details of Purch. Organization, Purchasing group, Material Group and others as per the requirement
Assign the component to the corresponding Operations as shown Below

Initial Stock Of the Header Material

Intial Stock of Raw Materials

Component 1

Component 2

Create Production Order for the Header Material FERTTESTING in CO01 as shown Below, BOM & Routing are copie
Check for the generation of Purchase Requisition in the Ext. Processing Tab.

MD04 Screen shot for the header material as well as Components

Now release the Production Order and save the orde

Now confirm the first operation with transaction CO11N , the component got issued due to blackflush indicot is tic
 Component 1 was issue to the

Create Purchase Order with the Purchase requisition generated for the second operation with transaction ME21N
Now issue this component to the purchase order with movement type 541 through transaction MB1B as shown b

Now check the stock of second component appearing as Stock provided to vendor as shown in the below sc
Semi-finished product along with second component sent to vendor for executing the second operation.
Once the operation completed by the vendor semi-finished product is sent back to plant for execution of Second o

Now make GR for material with the purchase order with 101 movements and during this GR second component st
Stock Provided to vendor was consumed

After done GR, the second operation status changed to EODL

Good movement happen for the Second component

Finally do GR with respect to Prduction order with transaction MIGO where 101 movement type was posted

Stock got updated in the MMBE overview

s as input materials.

ntrol key PP02 as shown below with Transaction code CA01

per the requirement

elow, BOM & Routing are copied from Master data
d due to blackflush indicot is ticked in Material Master
 Component 1 was issue to the production order

ration with transaction ME21N

h transaction MB1B as shown below

dor as shown in the below screen shot

 he second operation.
plant for execution of Second operation

ng this GR second component stock is consumed which is provided to vendor

ovement type was posted