The flowchart depicts the end-to-end process of subcontracting procurement for stock materials in SAP, involving multiple departments: Vendor, Planning/Production, Plant Buyer, Warehouse, and Account Payables. It shows how a subcontracting requirement flows from initial requisition to final invoice processing in SAP ERP.

Here’s a detailed breakdown of the process:

🏭 Planning/Production:

• Subcontract Requisition: The process starts with either an MRP/Production Subcontract Purchase Requisition or a Manual Subcontract Purchase Requisition.
• Source List Check: The system checks if a source list exists for the required materials.
• RFQ/Sourcing: If no source list exists, an RFQ/Sourcing process is initiated.

🛒 Plant Buyer:

• Purchase Requisition Processing: The buyer assigns and processes the purchase requisition.
• Purchase Order Creation: Creates a purchase order or release order based on the requisition.
• Order Management: Handles any changes or cancellations to the purchase order.
• Order Communication: Sends the purchase order to the vendor via email/fax/mail.
• Delivery Confirmation: Receives and processes the delivery confirmation from the vendor.
• PO Update: Updates the PO based on the ASN (Advanced Shipping Notice) if available.

🏭 Vendor:

• Component Receipt: Receives components for subcontracting work.
• Order Acknowledgment: Receives and acknowledges the PO.
• ASN Processing: Optionally sends an electronic ASN.
• Shipment & Invoicing: Processes the shipment and sends an invoice.

🏗️ Warehouse:

• Goods Issue: Issues goods for the subcontract PO.
• Goods Receipt: Receives the processed stock material back from the vendor.

💰 Account Payables:

• Invoice Processing: Receives and processes the supplier invoice.
• Payment: Initiates the accounts payable process for vendor payment.

Key Integration Points:

• The process integrates MRP, purchasing, warehousing, and financial processes.
• Electronic data interchange (EDI) is utilized for ASN processing.
• The flowchart shows clear handoffs between departments, ensuring smooth process flow.

This subcontracting process allows companies to outsource certain production operations while maintaining control over the materials and overall production process. It’s a complex yet efficient way to manage external manufacturing operations within the SAP system.

For more detailed information on subcontracting processes in SAP, you might find these resources helpful:

1. SAP MM Subcontracting Process Guide
2. SAP MM: Subcontracting Process (Special Procurement Process)
3. SAP PP: Assembly Level Sub-Contracting Process

These resources provide in-depth explanations and practical guidance on implementing and managing subcontracting processes in SAP.