Subcontracting with Third Party
Order and MRP Area
SAP Best Practices for Automotive Package
(Japan)
SAP Best Practices
Scenario Overview – 1
Purpose and Benefits:
Purpose
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The business scenario deals with a sub-component procured from a third
party vendor, which delivers not to the Supplier, but to the subcontractor
for further assembly.
Material requirements planning at the plant level (MRP area: plant) and
separate material requirements planning for subcontracting at the
vendor's subcontractor level (MRP area: subcontractor)
Benefits
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In third-party procurement with subcontractor as ship-to party, the Tier-2Supplier delivers the sub-component directly to subcontractor. Thus it
reduces the stock level on Tier-1 supplier side and shortens the
complete components delivery time.
Material Requirements Planning runs separately at MRP Area level,
which enhances transparency within a plant and provides a greater
degree of differentiation in material requirements planning.
With special procurement key ‘stock transfer from plant to MRP area’,
the system automatically generates a stock transfer reservation from
plant MRP area to Subcontracting MRP area, which supports the
subsequent logistics processing.
OEM receives the invoice automatically from supplier via EDI IDoc.
Scenario Overview – 2
SAP Applications Required:

Enhancement Package 4 for SAP ERP 6.0
Company Roles Involved in Process Flows:
OEM Client:
 Strategic Planner
 Warehouse Clerk
 Purchaser
 Production Planner
 IT Administrator (Professional User)
 Accounts Payable Manager
Supplier Client:
 IT Administrator (Professional User)
 Sales Administrator
 Purchaser
 Production Planner
 Shop Floor Specialist
 Warehouse Clerk
 Billing Administrator
Scenario Overview – 2
Key Process Flows Covered:
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OEM Process: Maintaining Planned Independent Requirement
OEM Process: Material Requirements Planning (MRP) at the Customer (OEM)
OEM Process: Creating Forecast Delivery Schedules / JIT Delivery Schedules
OEM Process: Message Outputting for Forecast Delivery Schedules
Supplier Process: Process Forecast Delivery Schedule for Scheduling Agreement
Supplier Process: Material Requirements Planning at Plant Level
Supplier Process: Creating Forecast Delivery Schedules for Subcontractors A-V6003 and A-V6004 and the
Component Supplier A-V6005
Supplier Process: Creating a Forecast Delivery Schedule for the Third-Party Order Vendor
Supplier Process: Posting Goods Receipt (from third-party vendor)
Supplier Process: Building Stock through Backflushing from Production - A-60-1120_SUP
Supplier Process: Generating the Delivery of Provided Material
Supplier Process: Goods Issue Posting for the Provided Material (with SD Delivery)
Supplier Process: Posting Goods Receipt for Subcontracted Material （Goods Receipt including A-601100_SUP & A-60-1200_SUP)
Supplier Process: Posting Goods Receipt for Purchased Material (A-60-1300-SUP)
Supplier Process: Backflushing in Production
Supplier Process: Generating Delivery
OEM Process: Goods Receipt Posting
Supplier Process: Processing and Output Billing Due List
OEM Process: Invoice Receipt
Scenario Overview – 3
Detailed Process Description :
Subcontracting with Third Party Order and MRP Area
The OEM plans its material requirements, runs an MRP and creates
forecast and JIT delivery schedules which are transmitted to the Supplier
(Tier 1).
The Tier-1-Supplier has to assemble the ordered material. Therefore the
Supplier plans its material requirements first. The resulting delivery
schedules are transmitted to the Tier-2-Supplier, third-party vendor, and
subcontractor.
The ordered sub-component from the third-party is delivered to the
Subcontractor1. The Subcontractor assembles the sub-component and
delivers the resulting component to the Tier-1-Supplier.
The Tier-1-Supplier performs further assembly and delivers the final
product to the OEM.
Process Flow Diagram
Subcontracting with Third Party Order and MRP Area
OEM Client / Plant 1000
Supplier Client / Plant 1000
Planned Independent requirement
Material Requirement Planning Run
DELFOR
Create Forecast / JIT Delivery Schedule
Forecast Delivery Schedule / JIT Delivery Schedule
DELJIT
Material Requirement Planning run
Forecast Delivery Schedule to subcontractor for A-60_1100_SUP
Forecast Delivery Schedule to subcontractor for A-60_1200_SUP
Forecast Delivery Schedule to supplier for A-60-1300_SUP
Material Requirement Planning run in subcontract Area for
A-60_1100_SUP
Forecast Delivery Schedule to third party vendor for component A-601110_SUP
Goods Receipt of A-60-1110_SUP to subcontract stock
Backflush to receive A-60-1120_SUP
Deliver A-60-1120_SUP to subcontractor
Goods Receipt for A-60-1100_SUP, A-60-1200_SUP, A-60-1300_SUP
Backflush of assembly A-60-1000_SUP
DESADV
Inbound Delivery
Outbound Delivery & Goods Issue
Goods Receipt
Invoice
INVOIC
Billing
Relationship Diagram
Subcontracting with Third Party Order and MRP Area
Forecast / JIT Del.Schedule
Assembled console
Delivery of A-60-1000_SUP
OEM
Supplier (1st Tier)
A-V6001
Supplier (2nd Tier)
A-V6005
Delivery of
A-60-1110_SUP
Schedule Agreement
5600006003
Third-party order
vendor A-V6002
Schedule Agreement
5600006001
Subcontractor
A-V6003
Schedule Agreement
5600006004
Subcontractor
A-V6004
Schedule Agreement
5600006005
Master Data
Subcontracting with Third Party Order and MRP Area
OEM Client /
Plant 1000
Supplier Client / Plant 1000
A-60-1000_OEM
Console Model
A-60-1000_SUP
Console Model
A-60-1100_SUP
Extension incl. painted component
A-60-1110_SUP
Soda can holder
A-60-1120_SUP
Extension incl. soda can cover
A-60-1200_SUP
Ashtray
A-60-1300_SUP
Inside armrest
A-60-1210_SUP
Ashtray cover)
A-60-1220_SUP
Ashtray lower part
A-60-1121_SUP
Pellets
Finished Product, Material Type = FERT
Semi-finished Product, material type = HALB
Raw Material, material type = ROH
Legend
<Function>
Symbol
Description
Usage
Comments
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.
Role band
contains tasks
common to that
role.
Symbol
Diagram
Connection
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.
Hardcopy /
Document
External
to SAP
External Events: Contains events that start or end the
scenario, or influence the course of events in the
scenario.
Business
Activity /
Event
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.
Connects two
tasks in a
scenario
process or a
non-step event
Business Activity / Event: Identifies an action that
either leads into or out of the scenario, or an outside
Process that happens during the scenario
Does not
correspond to a
task step in the
document
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
SubProcess
Reference
Proces
s
Decisio
n
Usage Comments
To next / From last Diagram: Leads
to the next / previous page of the
Diagram
Flow chart continues on the next /
previous page
Hardcopy / Document: Identifies a
printed document, report, or form
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
Financial Actuals: Indicates a
financial posting document
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
Budget Planning: Indicates a
budget planning document
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
Manual Process: Covers a task
that is manually done
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.
Existing Version / Data: This block
covers data that feeds in from an
external process
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
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.
Financial
Actuals
Budget
Planning
Manual
Proces
s
Unit Process
Process
Reference
Description
Process Reference: If the scenario references another
scenario in total, put the scenario number and name
here.
Sub-Process Reference: If the scenario references
another scenario in part, put the scenario number,
name, and the step numbers from that scenario here
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.
Corresponds to
a task step in
the document
Corresponds to
a task step in
the document
Does not
usually
correspond to a
task step in the
document;
Reflects a
choice to be
made after step
execution
Existing
Version /
Data
System
Pass/F
ail
Decisio
n