2Purpose, Benefits, and Key Process Steps The Subcontracting process involves sending raw components to a vendor for specific manufacturing processes and receiving the value-added finished material back into inventory.BenefitsBoM explosion triggers follow-on functions like delivery to subcontractor etc.Automatic posting of value flowAutomatic posting of stocks into corresponding stock types
3Purpose, Benefits, and Key Process Steps On goods delivery, the scenario focuses on the following activities:Purchase order creation based on a scheduled purchase requisition created by last MRP runOptional: manual purchase order creationPurchase order approval (if required)Creation of Subcontracting ChallanOn goods receipt, the scenario focuses on the following activities:Goods receipt for purchase order delivered by subcontractorReconciling Subcontracting ChallanCompleting/Reversal/Re-credit Subcontracting ChallanInvoice receipt by line itemInvoice verification and validation of tax expensesOutgoing payment
4Required SAP Applications and Company Roles Enhancement package 5 for SAP ERP 6.0Company RolesPurchasing AdministratorPurchasing ManagerWarehouse ClerkAccounts Payable AccountantProduction PlannerCIN
5Detailed Process Description SubcontractingA 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.
6Process Flow Diagram Subcontracting Event Vendor Buyer Warehouse Clerk Requirement of Subcontracting MaterialReceive Material at DockIncoming Vendor InvoiceVendorSubcontract PODelivery NoteBuyerCreate Subcontract POApprove POWarehouse ClerkGoods ReceiptPrint GR SlipTransfer Components to SubcontractorReconcile Subcontracting ChallanCreate Subcontracting ChallanComplete/Reversal/Re-credit Subcontracting ChanllanInventory GR/IR Subcontracting Services/ConsumptionAccounts PayableGR/IR PPV VendorInvoice VertificationMRP = Material Requirements Planning, PO = Purchase Order, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price VarianceThe process for the role of Excise Clerk is not shown in this Diagram
7Legend Symbol Description Usage Comments Symbol Description 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.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.Role band contains tasks common to that role.External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequently-used 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 eventBusiness Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenarioDoes not correspond to a task step in the documentUnit Process: Identifies a task that is covered in a step-by-step manner in the scenarioCorresponds to a task step in the documentProcess 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 hereProcess 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.Does not usually correspond to a task step in the document; Reflects a choice to be made after step executionSymbolDescriptionUsage CommentsTo next / From last Diagram: Leads to the next / previous page of the DiagramFlow chart continues on the next / previous pageHardcopy / Document: Identifies a printed document, report, or formDoes 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 linesFinancial Actuals: Indicates a financial posting documentBudget Planning: Indicates a budget planning documentManual Process: Covers a task that is manually doneDoes 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 processDoes 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 linesSystem Pass / Fail Decision: This block covers an automatic decision made by the softwareDoes 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.Diagram Connection<Function>External to SAPHardcopy / DocumentFinancial ActualsBusiness Activity / EventBudget PlanningUnit ProcessManual ProcessProcess ReferenceSub-Process ReferenceExisting Version / DataProcess DecisionSystem Pass/Fail Decision