{"id":15567,"date":"2025-05-16T11:15:36","date_gmt":"2025-05-16T11:15:36","guid":{"rendered":"https:\/\/gtracademy.org\/?p=15567"},"modified":"2025-05-23T16:38:35","modified_gmt":"2025-05-23T16:38:35","slug":"subcontracting-process-in-sap-mm","status":"publish","type":"post","link":"https:\/\/gtracademy.org\/staging\/subcontracting-process-in-sap-mm\/","title":{"rendered":"Complete Subcontracting Process in SAP MM with T-Codes1"},"content":{"rendered":"<p class=\"\" data-start=\"139\" data-end=\"444\">The <strong data-start=\"143\" data-end=\"179\">subcontracting process in SAP MM<\/strong> is essential for businesses that outsource specific production operations to external vendors. Whether you\u2019re a beginner or an advanced SAP consultant, understanding this process and the associated T-codes is vital for effective procurement planning and execution.<\/p>\n<p class=\"\" data-start=\"446\" data-end=\"742\">This blog post explains the complete subcontracting process using a structured approach\u2014<strong data-start=\"534\" data-end=\"543\">Basic<\/strong>, <strong data-start=\"545\" data-end=\"561\">Intermediate<\/strong>, and <strong data-start=\"567\" data-end=\"579\">Advanced<\/strong> questions\u2014along with clear answers and transaction codes. The goal is to help you confidently handle subcontracting scenarios in SAP MM, from setup to settlement.<\/p>\n<p data-start=\"446\" data-end=\"742\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-15568 size-full\" src=\"https:\/\/gtracademy.org\/wp-content\/uploads\/2025\/05\/Top-SAP-MM-Interview-2.png\" alt=\"Complete Subcontracting Process in SAP MM with T-Codes\" width=\"1280\" height=\"720\" srcset=\"https:\/\/gtracademy.org\/staging\/wp-content\/uploads\/2025\/05\/Top-SAP-MM-Interview-2.png 1280w, https:\/\/gtracademy.org\/staging\/wp-content\/uploads\/2025\/05\/Top-SAP-MM-Interview-2-300x169.png 300w, https:\/\/gtracademy.org\/staging\/wp-content\/uploads\/2025\/05\/Top-SAP-MM-Interview-2-1024x576.png 1024w, https:\/\/gtracademy.org\/staging\/wp-content\/uploads\/2025\/05\/Top-SAP-MM-Interview-2-768x432.png 768w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n<hr class=\"\" data-start=\"744\" data-end=\"747\" \/>\n<h2 class=\"\" data-start=\"749\" data-end=\"789\"><strong data-start=\"752\" data-end=\"789\">What is Subcontracting in SAP MM?<\/strong><\/h2>\n<p class=\"\" data-start=\"791\" data-end=\"1102\"><strong data-start=\"791\" data-end=\"809\">Subcontracting<\/strong> is a procurement process where a company provides raw materials or components to a vendor (subcontractor) who then performs specific operations and returns the finished product. In SAP, subcontracting is managed through <strong data-start=\"1030\" data-end=\"1058\">special procurement type<\/strong> and associated with unique item categories.<\/p>\n<hr class=\"\" data-start=\"1104\" data-end=\"1107\" \/>\n<h2 class=\"\" data-start=\"1109\" data-end=\"1173\"><strong data-start=\"1112\" data-end=\"1173\">Basic-Level Questions on Subcontracting Process in SAP MM<\/strong><\/h2>\n<h3 class=\"\" data-start=\"1175\" data-end=\"1234\"><strong data-start=\"1179\" data-end=\"1234\">1. What is the purpose of subcontracting in SAP MM?<\/strong><\/h3>\n<p class=\"\" data-start=\"1236\" data-end=\"1271\">Subcontracting helps organizations:<\/p>\n<ul data-start=\"1273\" data-end=\"1432\">\n<li class=\"\" data-start=\"1273\" data-end=\"1343\">\n<p class=\"\" data-start=\"1275\" data-end=\"1343\">Outsource specific production activities (e.g., painting, assembly).<\/p>\n<\/li>\n<li class=\"\" data-start=\"1344\" data-end=\"1395\">\n<p class=\"\" data-start=\"1346\" data-end=\"1395\">Reduce internal workload and manufacturing costs.<\/p>\n<\/li>\n<li class=\"\" data-start=\"1396\" data-end=\"1432\">\n<p class=\"\" data-start=\"1398\" data-end=\"1432\">Improve flexibility in operations.<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"1434\" data-end=\"1437\" \/>\n<h3 class=\"\" data-start=\"1439\" data-end=\"1498\"><strong data-start=\"1443\" data-end=\"1498\">2. What master data is required for subcontracting?<\/strong><\/h3>\n<p class=\"\" data-start=\"1500\" data-end=\"1563\">To perform subcontracting, the following master data is needed:<\/p>\n<ul data-start=\"1565\" data-end=\"1842\">\n<li class=\"\" data-start=\"1565\" data-end=\"1604\">\n<p class=\"\" data-start=\"1567\" data-end=\"1604\"><strong data-start=\"1567\" data-end=\"1604\">Vendor Master (T-code: XK01\/XK02)<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"1605\" data-end=\"1684\">\n<p class=\"\" data-start=\"1607\" data-end=\"1648\"><strong data-start=\"1607\" data-end=\"1646\">Material Master (T-code: MM01\/MM02)<\/strong><\/p>\n<ul data-start=\"1651\" data-end=\"1684\">\n<li class=\"\" data-start=\"1651\" data-end=\"1684\">\n<p class=\"\" data-start=\"1653\" data-end=\"1684\">Include BOM (Bill of Materials)<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li class=\"\" data-start=\"1685\" data-end=\"1785\">\n<p class=\"\" data-start=\"1687\" data-end=\"1725\"><strong data-start=\"1687\" data-end=\"1723\">Bill of Materials (T-code: CS01)<\/strong><\/p>\n<ul data-start=\"1728\" data-end=\"1785\">\n<li class=\"\" data-start=\"1728\" data-end=\"1785\">\n<p class=\"\" data-start=\"1730\" data-end=\"1785\">Contains components to be provided to the subcontractor<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li class=\"\" data-start=\"1786\" data-end=\"1842\">\n<p class=\"\" data-start=\"1788\" data-end=\"1842\"><strong data-start=\"1788\" data-end=\"1829\">Purchasing Info Record (T-code: ME11)<\/strong> <em data-start=\"1830\" data-end=\"1842\">(Optional)<\/em><\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"1844\" data-end=\"1847\" \/>\n<h3 class=\"\" data-start=\"1849\" data-end=\"1923\"><strong data-start=\"1853\" data-end=\"1923\">3. Which T-code is used to create a subcontracting purchase order?<\/strong><\/h3>\n<p class=\"\" data-start=\"1925\" data-end=\"1968\">Use <strong data-start=\"1929\" data-end=\"1938\">ME21N<\/strong> to create a purchase order.<\/p>\n<ul data-start=\"1969\" data-end=\"2063\">\n<li class=\"\" data-start=\"1969\" data-end=\"2010\">\n<p class=\"\" data-start=\"1971\" data-end=\"2010\">Item Category: <strong data-start=\"1986\" data-end=\"1991\">L<\/strong> (Subcontracting)<\/p>\n<\/li>\n<li class=\"\" data-start=\"2011\" data-end=\"2063\">\n<p class=\"\" data-start=\"2013\" data-end=\"2063\">Provide component materials via BOM or itemization<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"2065\" data-end=\"2068\" \/>\n<h3 class=\"\" data-start=\"2070\" data-end=\"2131\"><strong data-start=\"2074\" data-end=\"2131\">4. What happens after a subcontracting PO is created?<\/strong><\/h3>\n<p class=\"\" data-start=\"2133\" data-end=\"2157\">After the PO is created:<\/p>\n<ul data-start=\"2158\" data-end=\"2366\">\n<li class=\"\" data-start=\"2158\" data-end=\"2291\">\n<p class=\"\" data-start=\"2160\" data-end=\"2291\">Raw materials are sent to the subcontractor using a <strong data-start=\"2212\" data-end=\"2232\">transfer posting<\/strong> (T-code: <strong data-start=\"2242\" data-end=\"2250\">MB1B<\/strong> or <strong data-start=\"2254\" data-end=\"2262\">MIGO<\/strong> with movement type <strong data-start=\"2282\" data-end=\"2289\">541<\/strong>).<\/p>\n<\/li>\n<li class=\"\" data-start=\"2292\" data-end=\"2366\">\n<p class=\"\" data-start=\"2294\" data-end=\"2366\">The vendor performs the agreed operation and delivers the final product.<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"2368\" data-end=\"2371\" \/>\n<h3 class=\"\" data-start=\"2373\" data-end=\"2425\"><strong data-start=\"2377\" data-end=\"2425\">5. How are goods received in subcontracting?<\/strong><\/h3>\n<p class=\"\" data-start=\"2427\" data-end=\"2482\">When the finished material is received from the vendor:<\/p>\n<ul data-start=\"2483\" data-end=\"2604\">\n<li class=\"\" data-start=\"2483\" data-end=\"2551\">\n<p class=\"\" data-start=\"2485\" data-end=\"2551\">Use <strong data-start=\"2489\" data-end=\"2497\">MIGO<\/strong> for Goods Receipt against PO (Movement Type <strong data-start=\"2542\" data-end=\"2549\">101<\/strong>).<\/p>\n<\/li>\n<li class=\"\" data-start=\"2552\" data-end=\"2604\">\n<p class=\"\" data-start=\"2554\" data-end=\"2604\">System automatically consumes the component stock.<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"2606\" data-end=\"2609\" \/>\n<h3 class=\"\" data-start=\"2611\" data-end=\"2691\"><strong data-start=\"2615\" data-end=\"2691\">6. Which movement type is used to issue components to the subcontractor?<\/strong><\/h3>\n<p class=\"\" data-start=\"2693\" data-end=\"2769\"><strong data-start=\"2693\" data-end=\"2714\">Movement Type 541<\/strong> is used to transfer materials to subcontracting stock.<\/p>\n<hr class=\"\" data-start=\"2771\" data-end=\"2774\" \/>\n<h2 class=\"\" data-start=\"2776\" data-end=\"2847\"><strong data-start=\"2779\" data-end=\"2847\">Intermediate-Level Questions on Subcontracting Process in SAP MM<\/strong><\/h2>\n<h3 class=\"\" data-start=\"2849\" data-end=\"2913\"><strong data-start=\"2853\" data-end=\"2913\">7. How does SAP consume components during goods receipt?<\/strong><\/h3>\n<p class=\"\" data-start=\"2915\" data-end=\"2949\">During the <strong data-start=\"2926\" data-end=\"2948\">Goods Receipt (GR)<\/strong>:<\/p>\n<ul data-start=\"2950\" data-end=\"3139\">\n<li class=\"\" data-start=\"2950\" data-end=\"3069\">\n<p class=\"\" data-start=\"2952\" data-end=\"3069\">SAP checks the BOM and automatically posts a <strong data-start=\"2997\" data-end=\"3032\">Goods Issue (Movement Type 543)<\/strong> for the components provided earlier.<\/p>\n<\/li>\n<li class=\"\" data-start=\"3070\" data-end=\"3139\">\n<p class=\"\" data-start=\"3072\" data-end=\"3139\">This reduces subcontracting stock and updates material consumption.<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"3141\" data-end=\"3144\" \/>\n<h3 class=\"\" data-start=\"3146\" data-end=\"3195\"><strong data-start=\"3150\" data-end=\"3195\">8. How is subcontracting stock monitored?<\/strong><\/h3>\n<p class=\"\" data-start=\"3197\" data-end=\"3252\">Use T-code <strong data-start=\"3208\" data-end=\"3216\">MB58<\/strong> to check stock provided to vendors.<\/p>\n<p class=\"\" data-start=\"3254\" data-end=\"3339\">Alternatively, <strong data-start=\"3269\" data-end=\"3277\">MB5T<\/strong> shows a list of subcontracting stocks with vendor references.<\/p>\n<hr class=\"\" data-start=\"3341\" data-end=\"3344\" \/>\n<h3 class=\"\" data-start=\"3346\" data-end=\"3399\"><strong data-start=\"3350\" data-end=\"3399\">9. How are subcontracting charges calculated?<\/strong><\/h3>\n<p class=\"\" data-start=\"3401\" data-end=\"3433\">Charges are calculated based on:<\/p>\n<ul data-start=\"3434\" data-end=\"3565\">\n<li class=\"\" data-start=\"3434\" data-end=\"3468\">\n<p class=\"\" data-start=\"3436\" data-end=\"3468\"><strong data-start=\"3436\" data-end=\"3468\">Subcontracting PO item price<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"3469\" data-end=\"3522\">\n<p class=\"\" data-start=\"3471\" data-end=\"3522\">Taxes, freight, discounts via <strong data-start=\"3501\" data-end=\"3522\">Pricing Procedure<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"3523\" data-end=\"3565\">\n<p class=\"\" data-start=\"3525\" data-end=\"3565\">Use <strong data-start=\"3529\" data-end=\"3538\">ME23N<\/strong> to view pricing conditions<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"3567\" data-end=\"3570\" \/>\n<h3 class=\"\" data-start=\"3572\" data-end=\"3625\"><strong data-start=\"3576\" data-end=\"3625\">10. How are subcontracting invoices verified?<\/strong><\/h3>\n<p class=\"\" data-start=\"3627\" data-end=\"3665\">Use <strong data-start=\"3631\" data-end=\"3639\">MIRO<\/strong> for invoice verification:<\/p>\n<ul data-start=\"3666\" data-end=\"3797\">\n<li class=\"\" data-start=\"3666\" data-end=\"3748\">\n<p class=\"\" data-start=\"3668\" data-end=\"3748\">The system picks up only the subcontracting service value (not component costs).<\/p>\n<\/li>\n<li class=\"\" data-start=\"3749\" data-end=\"3797\">\n<p class=\"\" data-start=\"3751\" data-end=\"3797\">Use <strong data-start=\"3755\" data-end=\"3771\">PO Reference<\/strong> and check taxes, freight.<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"3799\" data-end=\"3802\" \/>\n<h3 class=\"\" data-start=\"3804\" data-end=\"3870\"><strong data-start=\"3808\" data-end=\"3870\">11. What are the accounting entries during subcontracting?<\/strong><\/h3>\n<p class=\"\" data-start=\"3872\" data-end=\"3901\"><strong data-start=\"3872\" data-end=\"3901\">At component issue (541):<\/strong><\/p>\n<ul data-start=\"3902\" data-end=\"3953\">\n<li class=\"\" data-start=\"3902\" data-end=\"3953\">\n<p class=\"\" data-start=\"3904\" data-end=\"3953\">No financial posting; only stock reclassification<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"3955\" data-end=\"3982\"><strong data-start=\"3955\" data-end=\"3982\">At goods receipt (101):<\/strong><\/p>\n<ul data-start=\"3983\" data-end=\"4093\">\n<li class=\"\" data-start=\"3983\" data-end=\"4020\">\n<p class=\"\" data-start=\"3985\" data-end=\"4020\">Dr: Inventory of finished product<\/p>\n<\/li>\n<li class=\"\" data-start=\"4021\" data-end=\"4051\">\n<p class=\"\" data-start=\"4023\" data-end=\"4051\">Cr: GR\/IR Clearing Account<\/p>\n<\/li>\n<li class=\"\" data-start=\"4052\" data-end=\"4093\">\n<p class=\"\" data-start=\"4054\" data-end=\"4093\">Dr: Consumption of components (via 543)<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"4095\" data-end=\"4123\"><strong data-start=\"4095\" data-end=\"4123\">At invoice verification:<\/strong><\/p>\n<ul data-start=\"4124\" data-end=\"4158\">\n<li class=\"\" data-start=\"4124\" data-end=\"4137\">\n<p class=\"\" data-start=\"4126\" data-end=\"4137\">Dr: GR\/IR<\/p>\n<\/li>\n<li class=\"\" data-start=\"4138\" data-end=\"4158\">\n<p class=\"\" data-start=\"4140\" data-end=\"4158\">Cr: Vendor Account<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"4160\" data-end=\"4163\" \/>\n<h3 class=\"\" data-start=\"4165\" data-end=\"4212\"><strong data-start=\"4169\" data-end=\"4212\">12. How to view subcontracting history?<\/strong><\/h3>\n<p class=\"\" data-start=\"4214\" data-end=\"4218\">Use:<\/p>\n<ul data-start=\"4219\" data-end=\"4322\">\n<li class=\"\" data-start=\"4219\" data-end=\"4257\">\n<p class=\"\" data-start=\"4221\" data-end=\"4257\"><strong data-start=\"4221\" data-end=\"4229\">ME2O<\/strong> \u2013 POs with subcontracting<\/p>\n<\/li>\n<li class=\"\" data-start=\"4258\" data-end=\"4322\">\n<p class=\"\" data-start=\"4260\" data-end=\"4322\"><strong data-start=\"4260\" data-end=\"4268\">MB51<\/strong> \u2013 Movement history (Filter by movement type 541, 543)<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"4324\" data-end=\"4327\" \/>\n<h2 class=\"\" data-start=\"4329\" data-end=\"4396\"><strong data-start=\"4332\" data-end=\"4396\">Advanced-Level Questions on Subcontracting Process in SAP MM<\/strong><\/h2>\n<h3 class=\"\" data-start=\"4398\" data-end=\"4458\"><strong data-start=\"4402\" data-end=\"4458\">13. How do you handle by-products in subcontracting?<\/strong><\/h3>\n<p class=\"\" data-start=\"4460\" data-end=\"4501\">If the subcontractor returns by-products:<\/p>\n<ul data-start=\"4502\" data-end=\"4644\">\n<li class=\"\" data-start=\"4502\" data-end=\"4543\">\n<p class=\"\" data-start=\"4504\" data-end=\"4543\">Maintain BOM with <strong data-start=\"4522\" data-end=\"4543\">negative quantity<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"4544\" data-end=\"4605\">\n<p class=\"\" data-start=\"4546\" data-end=\"4605\">System includes the by-product in the goods receipt posting<\/p>\n<\/li>\n<li class=\"\" data-start=\"4606\" data-end=\"4644\">\n<p class=\"\" data-start=\"4608\" data-end=\"4644\">Manually adjust accounting if needed<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"4646\" data-end=\"4649\" \/>\n<h3 class=\"\" data-start=\"4651\" data-end=\"4718\"><strong data-start=\"4655\" data-end=\"4718\">14. Can we automate component provision during PO creation?<\/strong><\/h3>\n<p class=\"\" data-start=\"4720\" data-end=\"4740\">Yes. By maintaining:<\/p>\n<ul data-start=\"4741\" data-end=\"4833\">\n<li class=\"\" data-start=\"4741\" data-end=\"4767\">\n<p class=\"\" data-start=\"4743\" data-end=\"4767\"><strong data-start=\"4743\" data-end=\"4750\">BOM<\/strong> for the material<\/p>\n<\/li>\n<li class=\"\" data-start=\"4768\" data-end=\"4833\">\n<p class=\"\" data-start=\"4770\" data-end=\"4833\">System auto-populates components when you create the PO (ME21N)<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"4835\" data-end=\"4912\">Use <strong data-start=\"4839\" data-end=\"4858\">Item Category L<\/strong> and set <strong data-start=\"4867\" data-end=\"4885\">Components Tab<\/strong> active in PO item details.<\/p>\n<hr class=\"\" data-start=\"4914\" data-end=\"4917\" \/>\n<h3 class=\"\" data-start=\"4919\" data-end=\"4976\"><strong data-start=\"4923\" data-end=\"4976\">15. What if the vendor returns excess components?<\/strong><\/h3>\n<p class=\"\" data-start=\"4978\" data-end=\"5087\">Use movement type <strong data-start=\"4996\" data-end=\"5003\">542<\/strong> via <a href=\"https:\/\/help.sap.com\/docs\/SAP_S4HANA_ON-PREMISE\/b846b365dbf64aa3a251fbdb53f4c97e\/7782cf535b804808e10000000a174cb4.html\" target=\"_blank\" rel=\"noopener\"><strong data-start=\"5008\" data-end=\"5016\">MIGO<\/strong><\/a> to return the excess stock from subcontractor location to plant stock.<\/p>\n<hr class=\"\" data-start=\"5089\" data-end=\"5092\" \/>\n<h3 class=\"\" data-start=\"5094\" data-end=\"5155\"><strong data-start=\"5098\" data-end=\"5155\">16. How does batch management work in subcontracting?<\/strong><\/h3>\n<p class=\"\" data-start=\"5157\" data-end=\"5185\">For batch-managed materials:<\/p>\n<ul data-start=\"5186\" data-end=\"5308\">\n<li class=\"\" data-start=\"5186\" data-end=\"5249\">\n<p class=\"\" data-start=\"5188\" data-end=\"5249\">Batch numbers must be specified during 541 (transfer posting)<\/p>\n<\/li>\n<li class=\"\" data-start=\"5250\" data-end=\"5308\">\n<p class=\"\" data-start=\"5252\" data-end=\"5308\">Tracked throughout the process using <strong data-start=\"5289\" data-end=\"5298\">MSC3N<\/strong>, <strong data-start=\"5300\" data-end=\"5308\">MB56<\/strong><\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"5310\" data-end=\"5313\" \/>\n<h3 class=\"\" data-start=\"5315\" data-end=\"5378\"><strong data-start=\"5319\" data-end=\"5378\">17. Can we perform subcontracting with split valuation?<\/strong><\/h3>\n<p class=\"\" data-start=\"5380\" data-end=\"5415\">Yes, but configuration is required:<\/p>\n<ul data-start=\"5416\" data-end=\"5533\">\n<li class=\"\" data-start=\"5416\" data-end=\"5483\">\n<p class=\"\" data-start=\"5418\" data-end=\"5483\">Components and finished materials must support <strong data-start=\"5465\" data-end=\"5483\">valuation type<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"5484\" data-end=\"5533\">\n<p class=\"\" data-start=\"5486\" data-end=\"5533\">Ensure valuation types are assigned in <strong data-start=\"5525\" data-end=\"5533\">MM01<\/strong><\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"5535\" data-end=\"5538\" \/>\n<h3 class=\"\" data-start=\"5540\" data-end=\"5605\"><strong data-start=\"5544\" data-end=\"5605\">18. What are the challenges in real-world subcontracting?<\/strong><\/h3>\n<ul data-start=\"5607\" data-end=\"5757\">\n<li class=\"\" data-start=\"5607\" data-end=\"5645\">\n<p class=\"\" data-start=\"5609\" data-end=\"5645\">Tracking unplanned component returns<\/p>\n<\/li>\n<li class=\"\" data-start=\"5646\" data-end=\"5680\">\n<p class=\"\" data-start=\"5648\" data-end=\"5680\">Managing vendor stock mismatches<\/p>\n<\/li>\n<li class=\"\" data-start=\"5681\" data-end=\"5729\">\n<p class=\"\" data-start=\"5683\" data-end=\"5729\">Invoice mismatches due to incorrect PO pricing<\/p>\n<\/li>\n<li class=\"\" data-start=\"5730\" data-end=\"5757\">\n<p class=\"\" data-start=\"5732\" data-end=\"5757\">Incorrect BOM consumption<\/p>\n<\/li>\n<\/ul>\n<hr class=\"\" data-start=\"5759\" data-end=\"5762\" \/>\n<h2 class=\"\" data-start=\"5764\" data-end=\"5819\"><strong data-start=\"5767\" data-end=\"5819\">Summary of Key T-Codes in Subcontracting Process<\/strong><\/h2>\n<div class=\"_tableContainer_16hzy_1\">\n<div class=\"_tableWrapper_16hzy_14 group flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"5821\" data-end=\"7094\">\n<thead data-start=\"5821\" data-end=\"5918\">\n<tr data-start=\"5821\" data-end=\"5918\">\n<th data-start=\"5821\" data-end=\"5859\" data-col-size=\"sm\">Activity<\/th>\n<th data-start=\"5859\" data-end=\"5872\" data-col-size=\"sm\">T-Code<\/th>\n<th data-start=\"5872\" data-end=\"5918\" data-col-size=\"sm\">Description<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"6017\" data-end=\"7094\">\n<tr data-start=\"6017\" data-end=\"6114\">\n<td data-start=\"6017\" data-end=\"6055\" data-col-size=\"sm\">Create Vendor<\/td>\n<td data-start=\"6055\" data-end=\"6068\" data-col-size=\"sm\">XK01<\/td>\n<td data-start=\"6068\" data-end=\"6114\" data-col-size=\"sm\">Vendor Master Setup<\/td>\n<\/tr>\n<tr data-start=\"6115\" data-end=\"6212\">\n<td data-start=\"6115\" data-end=\"6153\" data-col-size=\"sm\">Create Material<\/td>\n<td data-col-size=\"sm\" data-start=\"6153\" data-end=\"6166\">MM01<\/td>\n<td data-col-size=\"sm\" data-start=\"6166\" data-end=\"6212\">Material Master Setup<\/td>\n<\/tr>\n<tr data-start=\"6213\" data-end=\"6310\">\n<td data-start=\"6213\" data-end=\"6251\" data-col-size=\"sm\">Create BOM<\/td>\n<td data-start=\"6251\" data-end=\"6264\" data-col-size=\"sm\">CS01<\/td>\n<td data-col-size=\"sm\" data-start=\"6264\" data-end=\"6310\">Bill of Materials for Subcontracting<\/td>\n<\/tr>\n<tr data-start=\"6311\" data-end=\"6408\">\n<td data-start=\"6311\" data-end=\"6349\" data-col-size=\"sm\">Create Subcontracting PO<\/td>\n<td data-col-size=\"sm\" data-start=\"6349\" data-end=\"6362\">ME21N<\/td>\n<td data-col-size=\"sm\" data-start=\"6362\" data-end=\"6408\">PO with Item Category L<\/td>\n<\/tr>\n<tr data-start=\"6409\" data-end=\"6506\">\n<td data-start=\"6409\" data-end=\"6447\" data-col-size=\"sm\">Transfer Posting to Vendor<\/td>\n<td data-start=\"6447\" data-end=\"6460\" data-col-size=\"sm\">MIGO\/MB1B<\/td>\n<td data-col-size=\"sm\" data-start=\"6460\" data-end=\"6506\">541 Movement Type<\/td>\n<\/tr>\n<tr data-start=\"6507\" data-end=\"6604\">\n<td data-start=\"6507\" data-end=\"6545\" data-col-size=\"sm\">Goods Receipt from Vendor<\/td>\n<td data-start=\"6545\" data-end=\"6558\" data-col-size=\"sm\">MIGO<\/td>\n<td data-start=\"6558\" data-end=\"6604\" data-col-size=\"sm\">101 + 543 Movement Types<\/td>\n<\/tr>\n<tr data-start=\"6605\" data-end=\"6702\">\n<td data-start=\"6605\" data-end=\"6643\" data-col-size=\"sm\">Invoice Verification<\/td>\n<td data-start=\"6643\" data-end=\"6656\" data-col-size=\"sm\">MIRO<\/td>\n<td data-start=\"6656\" data-end=\"6702\" data-col-size=\"sm\">Against PO<\/td>\n<\/tr>\n<tr data-start=\"6703\" data-end=\"6800\">\n<td data-start=\"6703\" data-end=\"6741\" data-col-size=\"sm\">Monitor Subcontracting Stock<\/td>\n<td data-col-size=\"sm\" data-start=\"6741\" data-end=\"6754\">MB58\/MB5T<\/td>\n<td data-col-size=\"sm\" data-start=\"6754\" data-end=\"6800\">Stock with Vendor<\/td>\n<\/tr>\n<tr data-start=\"6801\" data-end=\"6898\">\n<td data-start=\"6801\" data-end=\"6839\" data-col-size=\"sm\">Display PO<\/td>\n<td data-start=\"6839\" data-end=\"6852\" data-col-size=\"sm\">ME23N<\/td>\n<td data-col-size=\"sm\" data-start=\"6852\" data-end=\"6898\">View PO details and pricing<\/td>\n<\/tr>\n<tr data-start=\"6899\" data-end=\"6996\">\n<td data-start=\"6899\" data-end=\"6937\" data-col-size=\"sm\">View PO History<\/td>\n<td data-col-size=\"sm\" data-start=\"6937\" data-end=\"6950\">ME2O<\/td>\n<td data-col-size=\"sm\" data-start=\"6950\" data-end=\"6996\">Subcontracting-specific PO List<\/td>\n<\/tr>\n<tr data-start=\"6997\" data-end=\"7094\">\n<td data-start=\"6997\" data-end=\"7035\" data-col-size=\"sm\">Movement History<\/td>\n<td data-start=\"7035\" data-end=\"7048\" data-col-size=\"sm\">MB51<\/td>\n<td data-start=\"7048\" data-end=\"7094\" data-col-size=\"sm\">Track 541\/543\/101 movement types<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"sticky end-(--thread-content-margin) h-0 self-end select-none\">\n<div class=\"absolute end-0 flex items-end\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Read More Now: <a href=\"https:\/\/gtracademy.org\/sap-mm-s-4-hana-training-online-with-certificate\/\">Master SAP S\/4HANA MM Sourcing &amp; Procurement | Real-Time Training with Certification<\/a><\/p>\n<hr class=\"\" data-start=\"7096\" data-end=\"7099\" \/>\n<h2 class=\"\" data-start=\"7101\" data-end=\"7118\"><strong data-start=\"7104\" data-end=\"7118\">Conclusion<\/strong><\/h2>\n<p class=\"\" data-start=\"7120\" data-end=\"7466\">The <strong data-start=\"7124\" data-end=\"7160\">subcontracting process in SAP MM<\/strong> is a robust feature that allows companies to collaborate effectively with external vendors while maintaining control over material flow and financial transparency. From creating the right master data to managing components and invoices, understanding this process is key to a smooth procurement lifecycle.<\/p>\n<p class=\"\" data-start=\"7468\" data-end=\"7647\">Whether you&#8217;re configuring the BOM or troubleshooting PO pricing, knowing the correct T-codes and flow will ensure your subcontracting scenarios run efficiently and without error.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The subcontracting process in SAP MM is essential for businesses that outsource specific production operations to external vendors. Whether you\u2019re a beginner or an advanced SAP consultant, understanding this process and the associated T-codes is vital for effective procurement planning and execution. This blog post explains the complete subcontracting process using a structured approach\u2014Basic, Intermediate,&#8230;<\/p>\n","protected":false},"author":5,"featured_media":15568,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_post_transparent":"default","_kad_post_title":"default","_kad_post_layout":"default","_kad_post_sidebar_id":"","_kad_post_content_style":"default","_kad_post_vertical_padding":"default","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[20],"tags":[139,141,142,140],"class_list":["post-15567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sap","tag-sap-mm-subcontracting","tag-sap-mm-tutorial","tag-sap-subcontracting-steps","tag-subcontracting-t-codes-sap"],"acf":[],"_links":{"self":[{"href":"https:\/\/gtracademy.org\/staging\/wp-json\/wp\/v2\/posts\/15567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gtracademy.org\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gtracademy.org\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gtracademy.org\/staging\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/gtracademy.org\/staging\/wp-json\/wp\/v2\/comments?post=15567"}],"version-history":[{"count":0,"href":"https:\/\/gtracademy.org\/staging\/wp-json\/wp\/v2\/posts\/15567\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gtracademy.org\/staging\/wp-json\/wp\/v2\/media\/15568"}],"wp:attachment":[{"href":"https:\/\/gtracademy.org\/staging\/wp-json\/wp\/v2\/media?parent=15567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gtracademy.org\/staging\/wp-json\/wp\/v2\/categories?post=15567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gtracademy.org\/staging\/wp-json\/wp\/v2\/tags?post=15567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}