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How are the byproducts taken care of in subcontracting?
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Answer Posted / b prakash
You can use subcontract orders to plan the receipt of by-
products from subcontracting:
Similiar to production order processing, by-products are
entered in the subcontract order as components with
negative quantity.
In the provision of the components (with reference to the
purchase order, for example), the system ignores the
negative component items.
In the goods receipt for the purchase order, the system
automatically posts the receipt of the by-products. In the
material document, you can identify the by-product items
from their movement type 544. Note that the by-products are
posted to the "stock of material provided to vendor" (also
referred to as "subcontracting stock").
The receipt can still be corrected using the Subsequent
Adjustment function.
Due to the receipt of the by-products, the value of the
manufactured material is reduced.
To transfer the by-products quantities from the "stock of
material provided to vendor" (or subcontracting stock) to
the unrestricted-use stock, you enter a transfer posting
using movement type 542 (reversal of the provision of the
components).
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