This process flowchart, prepared by Dafnis Araujo, describes the subcontracting procurement cycle within SAP Materials Management module. Subcontracting, in this context, refers to the practice of sending raw materials or semi-finished goods to a vendor (subcontractor) for further processing or assembly.
Here’s an overview of the process:
- Procurement Area:
- Purchase Requisition [ME51N, ME54]: The cycle begins with a Purchase Requisition for subcontracting services. The requisition is reviewed and approved.
- Purchase Order [ME21N]: A Purchase Order is created and sent to the vendor.
- Logistic Area:
- Subcontract Delivery: The raw materials or components are delivered to the subcontractor.
- Goods Issue [VL02N]: The components issued are recorded in the system.
- Shipment Notification: Notification of the shipment is sent.
- Subcontractor Premises:
- Vendor Receives Goods: The subcontractor receives the raw materials or components for processing.
- Manufacturing Process: The subcontractor completes the manufacturing process using the provided materials.
- Return Finished Goods: The completed goods are returned to the original company.
- Logistic Area (Continued):
- Goods Receipt [MIGO]: The return of the finished goods is recorded, increasing stock of finished goods and decreasing the stock of components.
- Financial Area:
- Post the Invoice [MIRO]: An invoice is received from the subcontractor and recorded in the system.
- Invoice Verification: The invoice details are verified against the order and delivery records.
- Vendor Payment [F110]: The subcontractor is paid for the services rendered.
The flowchart encapsulates the integrated nature of materials management and financial accounting in subcontracting scenarios, ensuring that all parts of the transaction are accounted for, from the initial requisition to the payment of the vendor.
