Subcontracting

SAP Best Practices Baseline Package (China)

SAP Best Practices

Scenario Overview 1
Purpose and Benefits:
Purpose

The Subcontracting process involves sending raw components to a vendor for specific manufacturing processes and receiving the value-added finished material back into inventory.

Benefits

BoM explosion triggers follow-on functions like delivery to subcontractor etc. Automatic posting of value flow Automatic posting of stocks into corresponding stock types

Scenario Overview 2
SAP Applications Required:

SAP ECC 6.0 EhP3

Company Roles Involved in Process Flows:

Buyer Purchasing Manager Warehouse Clerk Accounts Payable Accountant

Key Process Flows Covered:

On goods delivery, the scenario focuses on the following activities: Purchase order creation based on a scheduled purchase requisition created by last MRP run Optional: manual purchase order creation Purchase order approval (if required) Outbound delivery Goods issue for delivery and shipment to subcontractor

Scenario Overview 3
Key Process Flows Covered:
On goods receipt, the scenario focuses on the following activities: Goods receipt for purchase order delivered by subcontractor Component reservations and consumption of component quantities as provision of material Invoice receipt by line item Invoice verification and validation of tax expenses Outgoing payment

Scenario Overview 4
Detailed Process Description:
Subcontracting
A subcontract purchase requisition is either generated via the Material Requirements Planning (MRP) process or manually by a requestor. A buyer validates the accuracy of the purchase requisition and converts it into a purchase order. The purchase order is subject to approval based on predefined parameters prior to being issued to a vendor. The consumption of sent components is recorded upon receipt of the value-added finished material. The vendor sends the invoice for the services provided which is paid during the normal payment cycle.

Process Flow Diagram

Subcontracting
Requirement of Subcontracti ng Material

Event

Receive Material at Dock

Incoming Vendor Invoice

Vendor

Subcontract PO

Delivery Note

Buyer

Create Subcontract PO

Approve PO

Post Goods Issue

Warehouse Clerk

Create Delivery Request

Goods Receipt
Confirm Transfer Order (Optional) (Optional) Generate Transfer Order Inventory GR/IR Subcontractin g Services/Cons umption

Print GR Slip

Delivery Pick List

(Optional) Pick Confirmation

Account s Payable

GR/IR PPV Vendor

Invoice Receipt

MRP = Material Requirements Planning, PO = Purchase Order, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance

Legend
Symbol Description Usage Comments
Role band contains tasks common to that role.

Symbol

Description

Usage Comments

<Function>

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role. The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario. External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Diagram Connection

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document

Hardcopy / Document: Identifies a printed document, report, or form

External to SAP

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequentlyused or conditional tasks in a scenario. Line can also lead to documents involved in the process flow. Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Connects two tasks in a scenario process or a non-step event

Financial Actuals: Indicates a financial posting document

Financial Actuals

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Business Activity / Event

Does not correspond to a task step in the document

Budget Planning: Indicates a budget planning document

Budget Planning

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Manual Process: Covers a task that is manually done

Unit Process

Manual Proces s
Process Reference: If the scenario references another scenario in total, put the scenario number and name here. Corresponds to a task step in the document

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow. Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

Process Reference

SubProcess Reference

Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here

Corresponds to a task step in the document

Existing Version / Data

Existing Version / Data: This block covers data that feeds in from an external process

Proces s Decisio n

Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

System Pass/F ail Decisio n

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.