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Showing posts from September, 2023

Procure To Pay (P2P) PROCESS IN SAP || Part 3 || Subcontracting, consignment, service management.

You require the subcontracting process in SAP when a company outsources parts of its manufacturing to subcontractors. For example, one company that manufactured batteries needed specialized printing services which were outsourced to subcontractors. Plastic boxes were provided to subcontractors and they did required printing on these boxes. Later, the subcontractors returned the boxes back to the client. The subcontractors charged the company for their services rendered per box.   Vendor consignment process in SAP is used when a vendor provides your company materials on loan. The materials are kept in the warehouse of your company until you withdraw the said materials for processing. Then, the liability is created for the vendor and a payment is done to the vendor on agreed intervals, e.g. weekly or monthly. For the vendor consignment process in SAP to work, you first need to agree on pricing with the vendor. The prices are a kept in consignment info records in the SAP system. The price