Implementing the Simplified Subcontracting Process with MRP Areas in SAP S/4HANA

  • by Caetano Almeida, Senior Support Engineer, SAP
  • December 29, 2017
Learn the changes and simplifications in the subcontracting process introduced with SAP S/4HANA and how to effectively implement it in SAP S/4HANA.
Learning Objectives

Reading this article, you’ll learn:

  • What changed in the subcontracting process in SAP S/4HANA
  • How to implement the subcontracting process in SAP S/4HANA using subcontracting material requirements planning (MRP) areas
  • How to analyze the MRP results with subcontracting MRP areas
Key Concept
SAP S/4HANA introduced major simplifications in production planning, including changes in the subcontracting process.

The subcontracting scenario has been simplified in SAP S/4HANA, and now SAP recommends the use of subcontracting MRP areas to implement this scenario. Even though the earlier releases already provided subcontracting MRP areas, the implementation of this scenario is simpler in SAP S/4HANA. I show you in detail the implementation of this scenario in SAP S/4HANA using material requirements planning (MRP) areas.

First, I provide an overview of the possible options to implement the subcontracting process in SAP ERP Central Component (ECC) and the simplified scenarios in SAP S/4HANA. I then describe the necessary customizing and master data changes. I also show you how to analyze the MRP results with subcontracting MRP areas.

Subcontracting in ECC

ECC traditionally offers three different ways to implement the subcontracting process:

  • Implement subcontracting with a separated planning segment
  • Implement subcontracting with subcontracting MRP areas
  • Implement the old subcontracting logic, with no separation between the plant and subcontractor stock

The first and most commonly implemented method has a separated planning segment to represent the subcontractor. This process is very simple, and you only need to define a special procurement for the subcontracted material and define a source of supply in the source list. From a planning perspective, subcontractor requirements and the stock provided to the vendor are planned and displayed separately, under a special stock segment. Figure 1 shows this special stock segment in the Stock/Requirements List (transaction code MD04).


Figure 1
Special stock segment for subcontracting in ECC

Caetano Almeida

Caetano Almeida is a computer engineer with an MBA in IT management. He has more than nine years of experience in production planning, with the last six years working at SAP Support, where he supports SAP customers and writes documentation and correction notes.

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