Subcontracting

Global Template Guidelines
Subcontracting Scenario Guidelines

GENERAL INFORMATION
Organization FC-GLOBE / GT D&SP

Associated None.
Documentation
Author Oliver Haeckel
Version Reason for Change Guideline

Effective Date
1 Original 02.12.2002
1.5 Updated for 1.5 30.06.2003
632073147.doc Page 1 of 41 Created: 09.12.2022

Author: Oliver Haeckel Printed: 14.10.2002 17:29
CONTENTS
1 DESCRIPTION OF SCENARIOS..............................................................................................................................3
2 MASTER DATA........................................................................................................................................................4
2.1 R/3 MASTER DATA..............................................................................................................................................4
2.1.1 Material Master..............................................................................................................................................4
2.1.2 Bill of Material...............................................................................................................................................6
2.1.3 Vendor Master................................................................................................................................................6
2.1.4 Contract / Schedule Agreement......................................................................................................................7
2.1.5 Source List......................................................................................................................................................9
2.1.6 Quota Arrangement........................................................................................................................................9
2.1.7 Purchasing Info Record................................................................................................................................10
2.2 CORE INTERFACE (CIF) BETWEEN R/3 AND APO.............................................................................................10
2.3 APO MASTER DATA.........................................................................................................................................11
2.3.1 Location Master............................................................................................................................................11
2.3.2 Product Location Master..............................................................................................................................11
2.3.3 Resource Master...........................................................................................................................................13
2.3.4 Production Process Model...........................................................................................................................14
2.3.5 Transportation Lane.....................................................................................................................................15
2.3.6 Quota Arrangement......................................................................................................................................15
3 PLANNING EXECUTION.....................................................................................................................................16
3.1 DEMAND PLANNING (APO)..............................................................................................................................16
3.2 SNP PLANNING (APO)......................................................................................................................................16
3.3 MPS PLANNING (APO).....................................................................................................................................16
3.4 DPS PLANNING (APO)......................................................................................................................................18
3.5 MRP PLANNING (R/3).......................................................................................................................................19
4 TEST SCRIPT.........................................................................................................................................................22
5 SC VENDOR MODELLED AS PLANT...............................................................................................................31

5.1 MASTER DATA SETUP.......................................................................................................................................31
5.2 COMMENTS........................................................................................................................................................32
6 PRODUCTION VERSIONS AT THE SC VENDOR..........................................................................................33
7 CIF OF PRODUCTION VERSIONS....................................................................................................................35

7.1 R/3 MASTER DATA............................................................................................................................................35
7.2 CIF INTEGRATION MODEL................................................................................................................................37
7.3 APO MASTER DATA CREATED VIA CIF............................................................................................................38
8 OPEN POINTS........................................................................................................................................................39
8.1 WRONG DELIVERY ADDRESS............................................................................................................................39
8.2 ALTERNATIVE BOMS / SEVERAL PRODUCTION VERSIONS...............................................................................39
8.3 Transportation Lane..........................................................................................................................................39

1 Description of Scenarios
The first scenario is the main one described in this guideline.

A second scenario (SC vendor as plant) is described in chapter 5.

2 Master Data
2.1 R/3 Master Data
2.1.1 Material Master

Necessary are Purchasing view and MRP views 1-4.
Plant specific material status: Z2 or Z3 allow usage for MRP
Automatic PO: ticked on purchasing view  ME59 (automatic conversion) possible
Source list: ticked on purchasing view  only purchase orders linked to a contract that is
listed in a source list can be created
Special settings for the Subcontracting Scenario

a) Material produced at the subcontractor site and purchased back
In case Nestlé is not producing the product:

Procurement type 'F' (external procurement); Special procurement type '30' (Subcontracting)
In case Nestlé is also producing the product and subcontractor is used for excess demand:
Procurement type 'X'; no special procurement type (only in contract)
b) Material produced at Nestlé factory and send to subcontractor

normal settings for in-house produced items

c) Material purchased for the subcontractor
Settings for Nestlé factory
Settings for Subcontractor (MRP area on material of Nestlé factory)
d) Material provided by other Nestlé plant
settings as normal

2.1.2 Bill of Material

BOM for material produced by the Subcontractor also created for Nestlé Factory
2.1.3 Vendor Master

Subcontractor is created as normal supplier.
Automatic PO: ticked on purchasing view  ME59 (automatic conversion) possible

2.1.4 Contract / Schedule Agreement

QM Info record required before Contract creation.
For usage of contract in MRP calculation it has to be released!

Item category has to reflect special procurement type '30'  'L'
no contract
c) Material purchased for the subcontractor
Standard Contract with another vendor from whom this material is purchased.
Material should be delivered to Subcontractor directly. This is reflected via Vendor assignment on the
delivery address of this item inclusive a flag indicating the vendor as Subcontractor. For this Vendor selection
the material has to have a MRP area with this vendor assigned to it (Configuration).

MRP area configuration:
d) Material provided by other Nestlé plant
no contract necessary, only source list entry for stock transfer

2.1.5 Source List

irrelevant as not transferred to APO ?
b) Material purchased for the subcontractor
Important to have the Subcontracting MRP area in the source list !
c) Material provided by other Nestlé plant
standard 'Stock Transfer' settings
2.1.6 Quota Arrangement

as normal
In example only single sourcing. In case of necessary quota the special procurement types according to
material master settings have to be reflected.

2.1.7 Purchasing Info Record

Info record of type 'Subcontracting' created.
b) Material purchased for the subcontractor

as normal
2.2 Core Interface (CIF) between R/3 and APO

In addition to the standard Integration Models the BASICDATA model has to include also the transfer of the
Subcontracting vendor master. The MASTERDATA model has to be enhanced by the Subcontracting
Contract for the item produced on the subcon site and purchased back by the Nestlé plant.

2.3 APO Master Data
2.3.1 Location Master

a) Nestlé Factory
normal factory settings
b) Subcontractor Location
2.3.2 Product Location Master

- for the Nestlé Factory (as CIFed across)

- for the Subcontractor Location

- for the Nestlé Factory (as CIFed across)
- for the Subcontractor Location

2.3.3 Resource Master

a) Nestlé Factory
normal resources (Handling, Production)
Handling Resource
Production Resource

2.3.4 Production Process Model

a) Nestlé Factory
no PPM existing as in R/3 only BOM, but no Master Recipe
The PPM should be created via the CIF – See Chapter 7

2.3.5 Transportation Lane

a) Nestlé Factory  Subcontractor Location
Material produced in Nestlé Factory and shipped to Subcontractor is assigned to these Transport Lane.
b) Subcontractor Location  Nestlé Factory
Material produced at Subcontractor and purchased back is assigned to these Transport Lane. The product
entry is created when CIFing the contract into APO.
2.3.6 Quota Arrangement

as normal

3 Planning Execution
3.1 Demand Planning (APO)

as normal
3.2 SNP Planning (APO)

as normal
3.3 MPS Planning (APO)

Before MPS run:
a) Created Forecast on Nestle Factory for product produced by Subcontractor will generate Purchase
requisitions with the link to the subcontracting contract (via transportation lane). These Purchase
Requisitions are carrying the BOM inside and generate via this dependent requirements for the raw /
packaging materials on R/3 side.

Purchase Req in R/3 with component list
b) On the Subcontracting Location for the produced item there are automatically Planned Orders (PlOrd)
created, if not enough stock is on hand. The dependent element from the PReqs are 'PReqRel'.
Production Resource for

Subcontracting Location from PPM

c) On the Subcontracting Location the components of the produced item (due to the PPM on the vendor
location) are requested from the Nestlé Factory via Stock Transfer Reservation. The dependent
element from the Planned Orders are Subcontractor Requirements (SubReq).
d) If on the Nestlé Factory the component requested by the Subcontractor for his production is not
available Planned Orders to produce the semifinished product are automatically generated.
3.4 DPS Planning (APO)

as normal

3.5 MRP Planning (R/3)

MRP planning on plant level (MD01) calculates also all MRP areas; planning single items (MD02, MD03)
does not consider MRP areas. For stock transfer items system asks if planning should be executed on the
other factory in order initiate PReqs there in case of stock out.
The Actual Stock & Requirements list shows for all materials also the stock on the Subcontractor site, if the
good movements are posted in the system. These stock positions are important for the MRP run, because
only in case of negative available stock at the subcontractor the Dependent Subcontractor Requirements are
shown as dublicates on the Nestlé factory and considered by the MRP run.
Quantities of dependent reqs can also be shown partially if stock at subcontractor site is not covering the
requirement completely.
a) Material with MRP area
- stock situation on Nestlé Factory  no dependent requirement due to MRP area

- stock situation on MRP area
Dependent Requirements with assigned Subcontractor and assigned external Vendor for packaging material
in case of purchase requisition that is purchased for the subcontractor (source of supply determined via
standard master data: contract in source list).
b) Material with Stock Transfer from other factory
- stock situation on Nestlé Factory
Dependent Requirements with assigned Subcontractor and Purchase Req with delivering plant / Vendor
number for packaging material that is purchased from another Nestlé factory (source of supply determined
via standard master data: stock transfer plant in source list).

The Purchase Requisition generated via MRP run shows the Supplying Plant and Purchase Organisation
from the source list entry. The item category is matching with the special proc. type for stock transfer 'U'.
- stock situation on Nestlé stock transfer plant
The Purchase Requisition for stock transfer is here shown as Release Order for Stock Transfer Purchase
Requisition (PReqRel) with the receiving plant assigned. In case of negative available quantity the MRP run
generates here a standard purchase requisition to cover the requirement.

4 Test Script
1. SETUP DATA REQUIREMENTS
# DATA OBJECT VALUE/CODE DESCRIPTION COMMENTS AND NOTES

1 Company Z201
2 Plant Z203 FR PL Neutralia
3 Purchasing Organization Z200
4 Purchasing group 002 Strategic buyer Contract
003 Operational buyer Operational buyer
5 Subcontractor 100000004 Alu Pack Subcontractor
6 Vendor 100000006 Pow Chemicals Inc Supplier of Flow Wrapper
7 Suppling plant for Mat. Plant Z204
10000192
8 Subcontracting Product 1000050 Packed Choc Bars (FG) Product to be subcontracted
Plant Z200 (subcontracting info record, no special proc. type
Z203 '30' on MRP view 2)
Z204 for DCs no period lot-size ('Z1'), only 'EX' -> running
location heuristic (Demand plan converting to Net
receipt reqs) not possible
9 Material Components 10000191 Flow Pack wrapper Pow Chemicals to deliver direct to Subcontractor
Plant Z203 Special Procurement type 20 (external proc.; MRP
MRP area 100000004 view 2)
10 Material Components 10000192 Nestle Choc case Raise a PO on plant Z204

Plant Z203
Z204
11 Material Components 10000199 Choc Bars Stock Transfer from Plant Z203
Plant Z203
Will also require sales views

on the Material Master.
12 Stock 10000192, Nestlé Choc Case, Choc bars 140000 EA in Z204
10000199 260000 EA in Z203
13 Bill of Material for material 1000050 Packed Choc Bars (S'fd Product) 1 Packed Choc Bars 190 is made up of:
10 M (UoM) of 10000191
1 EA (UoM) of 10000192
20 EA (UoM) of 10000199
14 Transportation Lanes for material 1000050 from created by CIFing the contract from
vendor 100000004 to plant R/3 to APO
Z203
15 Subcontracting purchasing Vendor 100000004, Plant Mat. 1000050: info record
Info Record Z203, Purch. Org. Z200, Mat. 5300010048
1000050
16 Condition FRB1 Freight costs 10%
17 Contract for Mat. 1000050 No. 46001000031 / item 10 Contract
created and released
18 Source list for contract under Source list for Mat. 1000050, Source list valid for contract
No. 16 maintained Plant Z203 46001000031
19 Contract for Mat. 1000191 No. 46001000033 Contract
created and released
20 Source list for contract under Source list for Mat. 10000191, Source list valid for contract
No. 18 maintained Plant Z203 46001000033
21 MRP Area for materials 100000004 Subcontractor Alu Pack
10000191
2. TRANSACTIONAL STEPS
# BUSINESS Trans. SAP menu path INPUT DATA EXPECTED RESULTS OUTPUT DATA
PROCEDUR Code / ACTUAL RESULTS
ES STEPS System
Role: Demand Planner – ZERD0071
1 Generate / mySAP.com Generate a statistical A statistical forecast should A constant forecast of around 3500 cases
Statistical SAPAPO Workplace forecast with a Constant be generated with results was generated for each week for 104 week
Forecast /SDP94 profile and with a Seasonal that are reasonable with the into the future.
1. Demand Planner profile on shelf stabel type of profile selected for
2. Demand Planning products. the correct horizon. The forecast changes appropriately when
3. Interactive changing the model from constant, to
Planning The Statistical (baseline) seasonal, to trend.
4. Interactive 1. Generate a Statistical Forecast must be generated
Planning Forecast with a according the proportional
CONSTANT profile. factor in the different level of
This was executed on aggregation. The statistical forecast was distributed
product 1000050. evenly between the locations

ES STEPS System
Steps
Enter Interactive Planning See attached screen dump DSP Data 01
Choose Planning views
from Planning book: The summed data at location equals the
GTDP_MAIN01 product level forecast.
Load all products in the
shuffler.
Select one Product
1000050 in the shuffler and
load the data
Click Stat button in the
upper left of the toolbar
Select Master Profile:

GTDP_I2_CONSTANT
Select Univariate Profile:

I2_CONSTANT
Click Stat button in the

upper left of the tool bar
View the new forecast in

the Statistical Base
Forecast row.
Return to Interactive
Planning by selecting the
back arrow.
Reload the product

1000050 from the shuffler.
Verify that the forecast was

generated in the Statistical
(Base) Forecast key figure.

ES STEPS System
Verify the horizon is 104
weeks.
For the subcontracting E2E 600 cases for each week in

we verified the dis- 2002 in "Adjust Baseline
aggregation. This is Forecast"
documented in the test 600 cases for each week in 2002 in "Adjust
"Define level of Baseline Forecast"
Aggregation"
For purpose of this end to

end test, the "Adjust
Baseline Forecast" was
manually changed to
provide a quantity of 600
cases for each week in
2002
The proportional factors

were changed to distribute
evenly over Locations
Z200, Z203 and Z207. This
was done by selecting:
200 cases for each week for
Planningbook: each DC in 2002 in "Final
GTDP_PROP Consensus DP" 200 cases for each week for each DC in
Planningview: 2002 in "Final Consensus DP"
GTDP_PROP
Selecting Location details
(button in header row)
Change proportions for
each location to 21.0
Next select:
Planningbook:
GTDP_MAIN01
ES STEPS System
Copy figures to "Final

Consensus DP" with the
copy button on top of the
screen.
1. Release Demand / 1.Demand Planner Fill in appropriate Green lights for 'Release: Green lights for 'Release: Forecast'
Plan to SNP SAPAPO information: Forecast' And 'Characteristic combination: 1000050
/MC90 2.Demand Planning And 'Characteristic Z200' and Z203
Planning area: combination: 1000050 Z200'
3.Release to SNP GTDP_PLAW10
Planning version: 000
4.Define release to Key figure: DTDPPPL080
SNP
Planning version: 000
Categoy: FA
From date: 28.01.02

To date 24.01.03
Planning bucket profile:
GTDP_104WEEKS
Daily bucket profile: leave

empty
Product: 1000050
Location: Z200 and Z203
Select "Log"
Execute
MPS Planner
1. Run product / Production planning/ Planning version; 000 Display purchase req Requisition created
heuristic SAPAPO Interactive planning- Material: 1000050 released from Z203 Qyt: 105060
/RRP3 Product view Location :Z203 (See screen dump in S drive
Enter P2P attached to test script)

ES STEPS System
Select change mode
Click on product heuristic
PPDS tab from the product
location Z203 (this will
allow changes to e. g. lot
size, qty determination and
timing) Created Purchase
Enter requisitions Created Purchase requisitions
Results total requiremnts of
Displays created purchase 12000 NB Contract for 1000050 set up in
requisitions No Purchase req placed in transport lane so that it is entered in the
the DPS horizon and the P.Req
DPS horizon ends on the
18/02/02 (As we are working Purchase Requisition
with the MPS planner role Sourced from location 100000004
which limits access, as for Resource: Trans_0100000004
material 1000050 has been
set up as 21 days)
Purchase Requisition
Sourced from location
100000004
Save
2. Check Purchase / Production planning/ Material: 1000050 Requisition created Purchase requisitions created and sourced
Requisitions SAPAPO Interactive planning Location :Z203 from Vendor 10000004
/RRP3 Press refresh No: 10000311-318
Qty: 200 cs each
See screen dump
3. Check planned / Production planning/ Material: 1000050 Planned orders created Planned orders created from 13.02.2002 to
order in vendor SAPAPO Interactive planning Location : 0100000004 Stock transfer reqs created future (5 dazs lead time)
location for /RRP3 With same quantities as purchase reqs
product 1000050
See screen dump
ES STEPS System
4. Check stock / Production planning/ Material: 10000199 Stock transfer reservation Stock transfer reservation created location
Transport SAPAPO Interactive planning Location :Z203 created for location 100000004
requisition /RRP3 100000004 (The requirements are based on 1000050
Req)
in case there is not enough 2 days earlier (12.02.2002)
stock of 10000199 in Z203
there will be planned orders See screen dump
created
quantities related to factors
of BOM
5. Check Material / Production planning/ Material: 10000199 Stock transfer reservation for Stock of material 10000199 consumed in
SC requirements. SAPAPO Interactive planning Location : 0100000004 subcontracting requirement the production of material 1000050
/RRP3 shown
See screen dump
MRP Planner
Check dependent R/3 MRP Planner < Material 10000199 A subcontractor Material: 10000199
requirement MD04 Identify material Plant Z203 requirements are displayed Qty: as per the MPS results
availability < Monitor Enter for 10000199
Material Availibility
Exceptions < Display
Stock/Requirements
Situation
6. Execute MRP run MD03 MRP Planner < 2 runs separate for the
 Material & Calculate complete packaging materials
Packaging MRP < MRP run Material 10000191
requirements MRP area 100000004; MRP requirements for 2 MRP runs for materials 10000191 and
Plant : Z203 packaging materials 10000192 executed.
Enter 10000191 & 10000192
relates to the correct
Material10000192 volumes, based on the BOM
Plant:: Z203 for the selected product
Enter 1000050 with the SKU

ES STEPS System
demand flagged 'L';
Setting key
Netch
Create Purchase Req 1
Delivery schedule 3
Create MRP list 1
Planning mode 1
Scheduling 1
Todays date defaults
7. Display MRP MD04 Logistics/ Material 10000191 Purchase req created to be Purch.req. for packaging materials Req:
results Production/MRP/ Plant Z203 received from vendor 3000000336
Evaluations MRP area 100000004 100000006 with a delivery For material 10000191 in the MRP area.
address of vendor Qty: 2000,000 (is the sum of the
100000004 within requirements for the 14/02/02)
subcontract MRP area Date: 14/02/02
UoM: M
subcontract stock of material
10000191 issued to vendor
100000004 to make material
1000050
8. Display MRP MD04 Logistics/ Material 10000192 Purchase requisition created Pur Req: 3000000364
results Production/MRP/ Plant Z203 to be received from plant For material
Evaluations Z204, 10000192
Qty: 200 (the sum of the requirments for
the 14/02/02
Date: 14/02/02
UoM: EA
9. Display MRP MD04 Logistics Material 10000192 Purchase requisition release Purchase Requisition created number:
results for Z204 >>Production >MRP> Plant: Z204 created with a delivery plant 3000002184
Evaluations of Z203 Qty: 40,000
Date: 11/02/02
10. Create outbound ME2O operational buyer Monitor SC stock at vendor Select for a certain date Delivery Note 80000.....
deliveries out of range one material and Confirmation of ....ea
Subcontractor convert all Sub Reqs into
Reqs outbound deliveries

5 SC Vendor modelled as Plant
5.1 Master Data Setup
 Logical plant Z207 represents Subcontractor 100000004
 Material 1000050: produced item on subcontractor site (spec. proc. type '30')
 BOM in R/3 on logical plant Z207 that represents SC vendor

 Contract for 1000050 raised against Vendor 100000004 on Z207; item category 'L'
 Planning in APO executed for material on Z207; this triggers planning of other materials
 Transportation lane SU0100000004  Z207 with contract
 PPM in APO created on Z207 (including production resource on Z207)
 Material 10000199: semi-finished item used to produce the finished
 produced on Z203 and from there physically send to SC vendor

 Transportation lane Z203  Z207 and Z207  SU0100000004

 Material 10000191: purchased from Vendor 100000006 and directly send to SC Vendor
 MRP area created on material master of plant Z207 directing to SC Vendor 100000004
 Contract with assignment of SC Vendor on delivery address
 Source list is carrying the MRP area
 Material 10000192: purchased from plant Z204
 special proc. type for stock transfer from Z204 placed on material master of plant Z207
5.2 Comments
No direct transport lane from Z203 to Subcontractor as the related Stock Transfer Reservations created in
APO can not be CIFed to R/3; as Z203 is not carrying the BOM in this scenario, no Subcontractor
Requirement is created on this plant that can be picked up by ME2O transaction (the SubReq is created on
Z207 where the BOM in R/3 is existing  component in BOM linked to Z207 instead of Z203).
(example of direct transport lane from Z203 to SU0100000004 for material 10000199)
Therefore the PReqs created between Z203 and the logical plant indicate that the delivery address has to be
changed to the Subcontracting one ( ideally plant has already this address and description).
A special procurement type for 'withdrawal from another plant' results for manufacturing in direct
consumption of this material from the other plant. As materials handling requires GR/GI and shipping
documents for material movements 'withdrawal from another plant' is no option.
This applies to all APO planned materials that are shipped from a location (where BOM in R/3 is not created
on) to the subcontractor.


6 Production Versions at the SC Vendor

If several alternative BOMs exist for the item produced by the subcontractor there is no real option in
detecting the desired production version interactively.
The problem is that the planned order for the produced item is just another view on the Preq created on the
plant that buys the produced material back from the subcontractor and therefore cannot be changed  no
other PPM selectable.

Nevertheless it is possible to create in R/3 alternative BOMs and in APO matching PPMs.
R/3
APO
In order to target the planning run on different PPMs in APO a Quota Arrangement can be created
referencing both PPMs. The selected PPM can still not be changed in the planned orders itself.

7 CIF of Production Versions

Since SAP R/3 release 4.7 (Enterprise) it is possible to create PPMs on subcontractor locations by
CIFing production versions from R/3 into APO. In order to create a production version additional
master data are necessary (in R/3: BOM, Production Resource, Master Recipe, Production
Version, Purchasing Inforecord where production version is linked to).
These master data are equivalent with master data that are also required in APO to run the
scenario (in R/3: BOM; in APO: Production Resource, PPM).
This method of PPM creation should be used rather than creating manaully, as this is a pre-
requisite for the allocation of BoM components to the correct plants.
7.1 R/3 Master Data

 BOM
 Production Resource (entries on basic data, capacities, scheduling, costing necessary)

 Master Recipe
 Production Version
 Purchasing Inforecord  plant specific (otherwise field for production version does not exist)

7.2 CIF Integration Model

On the CIF integration model the contract or purchasing inforecord (type subcontracting) and the production
resource, PPM (type subcontracting) for the selected subcontracted material have to be listed.

7.3 APO Master Data created via CIF

The Production Versions create PPMs in APO.
The Purchasing Info Record creates a Transportation Lane of type subcontracting.

If in parallel a contract is CIFed across this results in a second transport lane entry.


8 Open Points
8.1 Wrong Delivery address

If materials have to be shipped from multiple factories / DCs to the SC Vendor only on one of these plants
the R/3 BOM can be created and therefore in R/3 the delivery address has to be changed manually in each
Preq / Purchase Order.
Functionality of special procurement types (setting: 'withdrawal from another plant') to be tested.
8.2 Alternative BOMs / several Production Versions

The quota arrangements are not correctly considered by PPDS heuristics  OSS message to be raised.
BOM re-explosion on Preq for the subcontracted item in R/3 changes the determined BOM always back into
the first alternative BOM in R/3 due to the sorting sequence of BOMs the first alternative is chosen.
In case of CIFing production versions to APO the re-explosion does not change BOM, even if version was
changed in inforecord inbetween.
8.3 Transportation Lane

Only contract or info record with prod version should be CIFed, otherwise 2 entries are created on the
transportation lane, but only the first one will be considered by the planning run. It is not possible to get
contract and inforecord with production version linked to the PReq.
When transport lane entry of type subcontracting created via CIFing of inforecord or contract gets blocked
the flag for type subcontracting is unticked on saving (in addition warning message that type should not be
changed). When entry is unblocked again, the flag is not set back. So the entry has to be deleted and
reCIFed, otherwise item categories in R/3 and APO do not match and result in CIF blockage.
This is a bug  OSS message to be raised.


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Global Template Guidelines

Subcontracting Scenario Guidelines

Subcontracting Scenario Guidelines

Organization FC-GLOBE / GT D&SP

Version Reason for Change Guideline

1.5 Updated for 1.5 30.06.2003

632073147.doc Page 1 of 41 Created: 09.12.2022

Subcontracting Scenario Guidelines

5 SC VENDOR MODELLED AS PLANT...............................................................................................................31

7 CIF OF PRODUCTION VERSIONS....................................................................................................................35

632073147.doc Page 2 of 41 Created: 09.12.2022

Subcontracting Scenario Guidelines

The first scenario is the main one described in this guideline.

632073147.doc Page 3 of 41 Created: 09.12.2022

Subcontracting Scenario Guidelines

2.1 R/3 Master Data

2.1.1 Material Master

Special settings for the Subcontracting Scenario

In case Nestlé is not producing the product:

b) Material produced at Nestlé factory and send to subcontractor

632073147.doc Page 4 of 41 Created: 09.12.2022

Subcontracting Scenario Guidelines

c) Material purchased for the subcontractor

Settings for Nestlé factory

Settings for Subcontractor (MRP area on material of Nestlé factory)

d) Material provided by other Nestlé plant

632073147.doc Page 5 of 41 Created: 09.12.2022

Subcontracting Scenario Guidelines

2.1.2 Bill of Material

2.1.3 Vendor Master

632073147.doc Page 6 of 41 Created: 09.12.2022

Subcontracting Scenario Guidelines

2.1.4 Contract / Schedule Agreement

Special settings for the Subcontracting Scenario

Item category has to reflect special procurement type '30'  'L'

b) Material produced at Nestlé factory and send to subcontractor

c) Material purchased for the subcontractor

632073147.doc Page 7 of 41 Created: 09.12.2022

Subcontracting Scenario Guidelines

MRP area configuration:

d) Material provided by other Nestlé plant

no contract necessary, only source list entry for stock transfer

632073147.doc Page 8 of 41 Created: 09.12.2022

Subcontracting Scenario Guidelines

2.1.5 Source List

irrelevant as not transferred to APO ?

b) Material purchased for the subcontractor

Important to have the Subcontracting MRP area in the source list !

c) Material provided by other Nestlé plant

standard 'Stock Transfer' settings

2.1.6 Quota Arrangement

632073147.doc Page 9 of 41 Created: 09.12.2022

Subcontracting Scenario Guidelines

2.1.7 Purchasing Info Record

Info record of type 'Subcontracting' created.

b) Material purchased for the subcontractor

2.2 Core Interface (CIF) between R/3 and APO

632073147.doc Page 10 of 41 Created: 09.12.2022

Subcontracting Scenario Guidelines

2.3 APO Master Data

2.3.1 Location Master

normal factory settings

2.3.2 Product Location Master