SAP BLOG Elasticity of batch management in subcontracting using delivery

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22 Ara 2017
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Purpose:


To enhance the stock visibility using Batch traceability and fix the problems related to subcontracting process using delivery if components used are batch manged item. Customers are using subcontracting using delivery and the receipt of finished products is posted in ”Decentralized(EWM) or HU manged location. The components to be provided to vendor are batch managed.

This blogs specifically deal with EWM managed location and IM managed location issues. For HU. managed location, subcontracting using delivery will be published in latter series.



Overview:


There are constraints to carry out receipt of FG material in EWM managed location because the consumption of subcontracting components(543) is driven in background through delivery and it is not dailog mode driven. It is not possible to edit quantities, or enter any batch number because it is posted in background. The components provided are unknown in the delivery and are posted automatically in background.

Since components to be provided to Vendor is batch manged and batch is not specified either in PO nor in delivery, system tries to determine batches with batch determination functionality using function VB_BATCH_DETERMINATION. If system doesn’t return any value, receipt process cannot be conducted and it brings error.



Solution:


As of SAP enhancement package 4 for SAP ERP 6.0 (SAP_APPL 604), there is a business function Outsoured Manufacturing (LOG_MM_OM_1). This business function facilitates all aspects of Subcontracting Process. This function enables to enter subcontracting components in Inbound delivery. As a result of this, information of used batches and component quantities can be assigned.

After activation of this business function, switches will be created and a New t code ME2ON subcontracting cookpit is created and it can be used to create delivery.



  1. Create a subcontracting PO.

If required, you can enter a batch here and same will be copied in ME2ON. But if multiple batches needs to be sent to vendor, this will not work. So, keep it blank

X0.png




2) Create delivery using ME2ON

Select the line corresponding to PO and click on create delivery.

x2.png




3) A dialog box information is generated where Quantity can be changed, storage location,shipping point and even batch can be assigned.

PO3-1.png




Constraints:


However, SAP has given no button to send multiple batches of the component to vendor nor there is any function to call batch determination.

However, if we recall the determination functionality, we can call batch determination on deliveries which have Sales order reference. But in this case, subcontracting deliveries are created without any reference to sales order and calling Batch determination in subtracting delivery is bit tricky.

However, this can be achieved as below



Check the configuration of delivery document type of subcontracting in customizing(OVLK)

OVLK.png


And assign this default order type to Batch search procedure in OCHA with Sales org, distribution channel and division.

1-2.png




Once, all batch determination configuration are set up with maintaining VCH1 condition record, batch determination can be called during Subcontracting delivery.



4) Lets create delivery now, change the quantity to 105, say we need to transfer partial Quantity to vendor and click on create document button.

PO4.png




Note:Batch determination is called in background as below.

BD.png








5) A delivery is created

How ME2ON or ME2O creates SD delivery, it cannot be explained in this single blog, it will take time to write another blog to mention mechanism of creating SD delivery via subcontracting.

DELIVERY.png




6) Check the delivery.

Multiple batches have been assigned and Batch split is called.

BSPL1.png




A) To call batch split in subcontracting delivery, below customization is mandatory.

Usage ”CHSP” Batch split with Subcontracting delivery type and item types.

Batch-split.png




B) Pick the delivery in EWM, create and confirm Warehouse Task and post PGI from EWM. ERP delivery document is updated.



7) Check stock of 4 batches in MMBE

4 batches 89,90,91 and 92 have been transferred to vendor.





SPV.png






8) Create Inbound delivery to post GR and consumption of materials.

With the activation of business function, Subcontracting components(SC) Button is activated.

IB1.png




9) BOM Explosion in Inbound delivery.

There are multiple buttons for exploration. You can see Stock provided to vendor directly here.

IB2.png


The required batches which have been sent to vendor can be displayed.



10) Click on Copy button to generates extra lines to incorporate 4 different batches which was transferred to vendor(541)



ib5.png






11) Change the GR quantity in inbound delivery because we had sent partial component quantities t vendor(541)

ib6.png


12) Check all the quantities before posting, SC component button



ib7-1.png




13) Post the GR finally.

GR is posted and batches are being checked during 543.
ib8.png




14) Check the Purchase order History tab in ME23N

The GR is posted and delivery is updated in PO.

POU.png




You can track consumption of components in PO also. The required batches which were transferred and consumed are updated.

PU2.png




15) Check the Delivery also where Purchase order is updated.

The link between Purchase order and delivery is established.

DC-1.png


How does PO and delivery is linked?


It is important to do customization in item category usage in shipping. Item usage ”V” is generated after activation of Business function( LOG_MM_OM_1).

A9.png


Note:->Item usage is hard coded

A10.png




What if Batch number is not entered in delivery and it is replicated to EWM?

  1. If delivery is created either my ME2O or ME2ON, batch field is not mandatory and it allows to save delivery without batch. The simple logic behind the programming is that if component provided to vendor is not batch managed then it makes no point of making this field mandatory.





C1-1.png




2) A delivery is created in ERP and it is distributed to EWM without batch and we get an error in EWM.

So, we need to have batch in subcontracting during delivery else WT cannot be created

C3.png




Customers who use IM managed location for FG receipt

  1. Create a subcontracting PO and create delivery via ME2ON for shipping components to vendor.

50 pcs is sent to vendor,

OBD2.png




here we have batch split of 3 batches to vendor.



2) Post the GR of FG in IM managed location via MIGO



BD1.png




So, we need to call batch determination on 543”O” movement type, click on stock determination Icon,



BD2.png




Batch determination is called in background via appropriate customization done in background. But required batches have not been picked. System has picked batches as per Last GR date, characteristics ”LOBM_LWEDT”. There is link in SAP to connect 541 to 543, but there is a standard Badi which can do this.



3) A sorting rule has been assigned in MBC1(543 O) movement type to call batch determination.



BD3.png




4) To link 541 batches to 543”O” batches you need to check the characteristics of 541 movement type batches and correspondingly you can do a manual sorting like below.

since, the batches had last GR date, so we can conduct manual sorting on this,

BD5.png






5) The correct batches have been sorted now, as below

BD6.png




6) Copy the required batches and they are linked in MIGO now



BD7.png




Post the GR, PO is updated.

t1.png




And consumption of batches can be tracked.

t2.png






What if customers doesn’t agree to activate business function LOG_MM_OM_1?


In that case, GR posting of FG materials should conducted in IM manged location. Business can use MIGO transaction to specify exact quantity of component consumed and book them at this location. Once booking is done, business can move the product from IM managed location to EWM managed location via 311 movement type, which will create an Inbound delivery and warehouse request in EWM which can be putawayed latter,



Hence the topic ends here. I would wait for any improvement or correction required to make this blog more useful.



Best regards

Shailesh MIshra



References.

SAP KBA and consulting notes

645119 – Problems for subcontracting using delivery

2689543 – Stuck queue in ERP issuing “Error when creating document flow for delivery XYZ”

2161961 – Select multilple batches in subcontracting

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