Stock Transport Order:
•Separate document type is available in Standard SAP. Stock Transfer Order is created with ME21N.
•Delivery Costs and any other charges can be given in PO Conditions. Separate Pricing procedure for STO is also available in SAP
•Delivery and Billing can be done through STO
•This process is generally preferred when client has plants in different cities or states and when client requires to monitor any other details like texts related , conditions related etc
•This process is done through MIGO
•Conditions can’t be maintained
•This is a transaction where only goods can be transferred so facilities which can be monitored in PO can’t be done
•This process is generally preferred when plants are in same city or client doesn’t want to monitor freight etc. details
I have provided brief details about Subcontracting process as per my experience. Make it useful. What is subcontracting process? Subcontracting is one of the procurement processes available in MM. In this process, components are shared to vendor to get the final product. Below are the steps involved in this process. Steps to perform subcontracting:
- Create subcontracting Info record (Optional) – T Code – ME11
- Create subcontracting PO with item category L – T Code – ME21N Steps: ME21N —> Enter Item Category L –>, Material (End Product), PO Quantity, Delivery Date, Net Price, Plant –> Click on Item Details –> Tab Material Data — >Components, select Explode BOM –> Click on Components button –> Enter the sub components –> Go back & Save. Note: Components can be exploded through BOM (T Code CS01) or components can be given manually also.
- Create Transfer Posting with Movement Type 541 to issue the sub components to the vendor T Code -ME2O/ MIGO
- Goods Receipt for finished product – T Code -MIGO Note: During goods receipt, final product will be received with movement type 101 and components will be consumed automatically with 543 movement type
- Invoice Receipt for the services performed – T Code – MIRO
Accounting entries for subcontracting: Example: Components cost is 100 INR, Subcontracting Charges are 40 INR
There will be no account entries at transfer posting 541.
Accounting entries at the time of Goods Receipt 101 (&543) : Finished goods will be received with 101 and the Components will be consumed with Movement type 543.
Here Dr means Debit (+Ve) and Cr means Credit (-Ve)
(BSX) Stock A/c of Assembly – 140 Dr
(BSV) Change in Subcontracting Stock -140 Cr
(FRL) Subcontracting Charges – 40 Dr
(WRX) GR/IR Clearing A/c – 40 Cr
(BSX) Stock A/c of Components – 100 Cr
(GBB-VBO) Consumption A/c of Components – 100 Dr
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