In SAP MM ECC6.0,
“The finished product is ordered from a vendor. The components that the vendor needs to manufacture the finished product are entered as “material to be provided” items. We will pay vendor for the services of assembly. Unused components belongs to us and we have the right to bring them back to our stocks. When the finished products are completed, the vendor then delivers them to us."
Which of the following item category appropriate for the above procurement scenario ?
(only one answer)
(A) Manufacturing order
(B) Third-party order
(C) External Procurement
(D) Consignment
(E) Subcontracting
.
“The finished product is ordered from a vendor. The components that the vendor needs to manufacture the finished product are entered as “material to be provided” items. We will pay vendor for the services of assembly. Unused components belongs to us and we have the right to bring them back to our stocks. When the finished products are completed, the vendor then delivers them to us."
Which of the following item category appropriate for the above procurement scenario ?
(only one answer)
(A) Manufacturing order
(B) Third-party order
(C) External Procurement
(D) Consignment
(E) Subcontracting
.
"Material Provision" are components we purchase to be provided for the subcontracting to assemble, it is therefore a subcontracting scenario.
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