Q&A in Class (2024-12-14) S4520

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Question: Notes and Blog Post link for Subcontracting Procurement Scenario. Subcontracting is a form of procurement in which the product (assembly) to be procured is manufactured (assembled) by a supplier (the subcontractor) to whom the buying party may provide the components to the subcontractor to perform the assembly. In this case, the buying party pays for the assembly services offered by the subcontractor. 

Characteristics of Subcontracting Procurement Scenario: 

• A BOM is required for the Assembly and Component. 
• In the Material BOM, use can decided if any of the Components are provided by the Vendor or provided by us tot he Subcontractor for the Assembly step.
• In S/4HANA, you will have to assign the BOM (Usage + Alternative) in the Material Master MRP4 view. 
• A Subcontracting Info Category is for the Purchasing Info Record is necessary which is used for the Purchasing services of the Assembly service by the Subcontractor. 
• Purchase Order for Subcontracting will be using Item Category "L".
• Components to be provided to the Subcontractor can be transferred to the Subcontractor via ME2O (ME2ON in S/4HANA) or MIGO, and both MM (1 step or 2 steps) and SD methods can be used for the Component send to the Subcontractor. 
• Special Stock Indicator "O" is used to represent the component stocks at the Subcontractor. 
• Goods Receipt of the Subcontracting Purchase Order will receive the Assembly and also reduce the Components stocks simultaneously. 

Answer: see Blog Post link below:
https://froggysap.blogspot.com/2024/09/sap-mm-special-stock-o-subcontracting.html

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Question: Notes on Invoicing Plan and Blog Posts for Invoicing Plan Scenario. SAP introduced the Invoicing Plan in the Early 2000s, maybe in SAP ERP4.0/4.5 or 4.6, but it is still available in S/4HANA 2023. The Invoicing Plan is not for Stock Scenario but can maybe be classified under the umbrella of Consumables scenario with an Invoicing Plan PO, no Goods Receipt, and just Invoicing Plan settlement to generate the Invoice based on the Scheduled payment in the Invoicing Plan PO.

Characteristics of Invoicing Plan: 

• Document type "FO" for Validity Period in the PO Header.
• Account Assignment mandatory and cannot be "U" (Unknown)
• No Item Category required.
• Material Master is not needed (just the description).
• GR indicator is not allowed. 
• Tax code is mandatory due to Auto Invoice. 
• An Invoicing Plan type is required (configurable with Date Rules). 
• 2 types of Invoicing Plan type either Periodic of Partial Invoicing Plan.
• Periodic Invoicing Plan comes with Fixed Amount and regular Internals (eg: Rental, Leasing)
• Partial Invoicing Plan comes with Different Amounts and irregular Intervals (eg: Renovations)

Answer: see Blog Post link below:

https://froggysap.blogspot.com/2016/04/mm-purchasing-invoicing-plan-periodic.html

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Question: The Blanket PO scenario is probably one of the many "Simplification Projects" in early 2000 where instead of PR-PO-GR-Invoice for Consumables which are done regularly (maybe weekly or monthly), the Blanket PO only requires PO and Invoice to record the work and amount to be paid. Examples can be procurement items like monthly photocopy service by the photocopy machine vendor, house keeping works done weekly etc. 

Characteristics of Blanket PO:

• Document type "FO" for Validity Period in the PO Header.
• Account Assignment is mandatory and "U" (Unknown) is possible as the actual Account Assignment object like cost center can be entered in the Invoice entry session. 
• Item Category "B" (Limit") to get the "Limit" tab in the item table. 
• Overall Limit (for checking the Total Invoice values).
• Expected Value (for activation of Release Strategy). 
• Goods Receipt is not expected and grayed out due to Item Category "B". 
• Message "M8298" can be configured for a particular User to be Warning or ERROR when the Invoice amount totaled is exceeding the Overall Limit. 
• Invoice entered must be within the Validity Period at the Blanket PO Header. 

Answer: see Blog Post link below:
https://froggysap.blogspot.com/2024/12/material-management-blanket-purchase.html

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