Subcontracting scenarios in SAP MM with Examples

Description

Explained all subcontracting scenarios with examples, where even freshers as well experienced people will understand all these scenarios, There are 4 scenarios i explained in subcontracting process where some are scrap/Vendor to vendor and few are related to general subcontracting scenarios.

To work on all these assembly parts/Extra accessories, we need manufacturing unit where we can do all this assembly but its costly and time taking for the preparation and we may have some quality issues, by keeping all this in mind every company would like to go for Sub-contracting process

We need a parent material which will get from subcontracting vendor and child material from another vendor, the child vendor should send the material directly to subcontracting vendor.

Eg: we would like to order a cell phone battery from child vendor, and he will directly send that battery to subcontracting vendor and subcontracting vendor will deliver the fully furnished phone. We need this to be implement in the SAP.

Please watch the videos and provide reviews for the concepts.

Subcontracting scenarios are triggered by inventory demand. Pricing is based on subcontracting service fees. Enterprises provide raw materials, recover processed products, carry out inventory management on issued materials and finished products and settle processing fees

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