Subcontracting
SAP Best Practices Baseline Package
(France)
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
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 – 1
Purpose and Benefits:
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 – 2
SAP Applications Required:
Required

SAP enhancement package 4 for SAP ERP 6.0
Company roles involved in process flows





Purchasing Administrator
Purchasing Manager
Warehouse Clerk
Accounts Payable Accountant
Production Planner
Scenario Overview – 3
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
Initial
Requirement
Situation
Execute MRP
Create
Subcontract PO
Assign Purchase
Requisition and
Create Purchase
Order
Approve
Purchase Orders
Create
Outbound
Delivery Request
Pick
Confirmation
(Optional)
Generate
Transfer Order
(Optional)
Confirm
Transfer Order
(Optional)
Accounts
Payable
Accountant
Warehouse
Clerk
Purchasing
Manager
Purchasing
Purchasing
Administrator Administrator
Subcontracting
Post Goods
Issue
Receive Goods
from
Subcontracting
BO
Invoice Receipt
from
Subcontracting
BO
MRP = Material Requirements Planning, PO = Purchase Order, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance
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