Subcontract Management with Chargeable Components

<Overview and Configuration>

S/4HANA OP 1709
Globalization Product Management – Japan, SAP Japan

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Introduction and Caution

Because Japan-specific requirements on Subcontracting cannot be realized by generic functions only, Japan-specific
solution of Subcontracting with Chargeable Components intends to make up for the missing generic functions.

The purpose of this material is to show you the configurations for Japan-specific solution of Subcontracting with Chargeable
Components and the generic configurations relevant to only SCC.

This material does not intend to explain all the generic capabilities in SD, MM, LE, PP, FI, CO, etc. If you need the detail
information about the generic capabilities, kindly please refer to the proper materials.

We hope this material could be helpful for you to configure Japan-specific solution of Subcontracting with Chargeable
Components.

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Agenda

Subcontracting with Chargeable Components

Overview of Japanese-Specific Subcontract Management
SCC-Specific Configuration
Generic Configuration Relevant to SCC

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Subcontracting with Chargeable
Components
Activation of Subcontracting with Chargeable Components

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Subcontracting with Chargeable Components

Package
/SAPNEA/AG AG Development for Subcon
/SAPNEA/J_SC1 Subcontracting Management
/SAPNEA/J_SC1_SFWS Subcontracting Management – Switchable
/SAPNEA/J_SC_BC Subcontracting Management - BC set objects

Superpackage
APPL

Application Component
FI-LOC-LO

Transport Layer
SCE1

Software Component
S4CORE

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SAP Easy Access Menu on Subcontracting Management

You enter SCC in the command field, and hit Enter.

SAP recommends you to create your own menu based on your requirements.

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IMG Menu on Subcontracting Management

No standard settings are provided for SCC solution. However, a number of BC

sets could be referred.

SAP recommends that you check (and could activate) the BC sets before you
proceed with the following IMG activities.
You could then adjust the settings made by the BC sets to match your own specific
requirements.

You can check the contents of BC sets via transaction SCPR20.

BC Set Technical Name

For Creating a New Sales Area /SAPNEA/SCC_01_ORG_SD

Related to Chart of Accounts /SAPNEA/SCC_02_COA

For First Time Use /SAPNEA/SCC_03_REQ

These BC Sets contains not only SCC specific configuration but also generic
configuration relevant to SCC.

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Overview of Japanese-Specific
Subcontracting Management
Extended Supply Chain & Subcontracting Management

Extended Supply Chain

Purchasing Production Sales

Components Components Semi-Products Products Products

Own Own Own

Supplier Subcontractor Customer
Company Company Company

Requirements Requirements Requirements Requirements Requirements

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Production Planning 10
SAP S/4HANA OP Capabilities for Subcontracting Management

Purchasing of Inventory Management for Compliance for

Production Accounting
subcontracted Products Components Subcontracting Act

Production Planning for Subcontracted Offsetting Based on

Supply Non-Chargeable Documents Required by
Purchase Order Consumption Quantity of
Products Components Subcontracting Act
Components

Production Planning for Subcontracted Products Offsetting Based on Inventory Control the Relevancy to
with SEIBAN
Goods Receipt Supply Chargeable Components
Balance of Components Subcontracting Act

Production Planning for Subcontracted Products

Quality Management of
considering Supplied Components to Inventory Valuation of Components Offsetting Based on Ratio
Subcontractors Subcontracted Products

Production Planning for Subcontracted Products

Inventory Valuation of
considering Supplied Components to Planning of Supplying Components Payment
Subcontractors with SEIBAN Subcontracted Products

Purchasing Step Process Outsourcing Pricing of Subcontracted Automatic Determination of Batch

Material Ledger
(KOTEI GAICHU) Products and Supplying Components

Allocate the production to own and Direct Shipping of Components to

Vendor Valuation
external Subcontractors

3rd Party SC Order

(WATARI GAICHU)

Generic

Japan Specific

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 Subcontracting Management with Japan-Specific Features

Production Planning Purchasing Management of Supplying Management of Components

Requirement for Subcon. Subcontracted Products
Products
Requirement for components

P.O. for
MRP
Subcon. Products

Goods issue of Supply Subcontractor

components components
Chargeable
Non Chargeable
Own Company (Plant)
Goods Receipt of
Components consumption Delivery of
Subcon. Products
(automatically) Subcon. products

Payables Deductible A/P

(Labor Cost) (Chargeable Material Cost)
Offset Unconfirmed A/R

Payment Invoicing and Payment (Offset)

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 Subcontracting with Chargeable Components

 What is “Chargeable Supply” ?

An own company supplies components of subcontracted products to a subcontractor, with chargeable. Different from
supplying components with non-chargeable, in case of supplying components with chargeable, when components are
supplied to a subcontractor, the ownership of these components are moved to a subcontractor.

 An own company posts Unconfirmed-A/R to a subcontractor.

 An own company buys-back subcontracted products including the material cost of chargeable components.

 Later on, an own company offsets between Unconfirmed-A/R from supplying chargeable components and Accounts Payable
from buying subcontracted products including the material cost of chargeable components, and the remaining amount is
paid to a subcontractor.

 In the past, “Subcontracting with Chargeable Components” was released as BPL (Best Practice Library), and it has been
delivered as standard (localization) since SAP R/3 Enterprise Extension 2.0, however, it cannot be used with Material
Ledger.

 Since S/4HANA 1709 on-premise, “Subcontracting with Chargeable Components” can work with Material Ledger.

 The solution of “Subcontracting with Chargeable Components” is for an own company.

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Transactions in SAP
EX) P.O. for 7 Subcontracted materials

Subcontracted Cost ¥300 (raw material=¥100, conversion cost=¥200)

Product To create one Subcon. material, it takes one component.
1 pc

Chargeable Cost ¥100 (component price=¥120)

Component Lot size 10 pc
1 pc

Transaction in SAP
１．Create P.O. for subcon. product T-cd:ME21N
２．Deliver components T-cd:ME2ON
３．Create invoice for chargeable components (post accrued) T-cd: /SAPNEA/JSCR11
４．Goods Receipt (consumption of components) T-cd:MIGO
５．Create Invoice Verification T-cd:MIRO
６．Post Deductible A/P T-cd: /SAPNEA/MRCH
７．Transfer posting for Confirmed Accrued (Determine the object of offset to be processed) T-cd: /SAPNEA/JSCR12, /SAPNEA/JSCR19
８．Payment program T-cd:F-53
(Note) Depending on the way of offsetting, 7 and 8 is vice versa.

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Journal Entries
/SAPNEA/JSCR19
ME2ON /SAPNEA/JSCR11 MIGO MIRO /SAPNEA/MRCH /SAPNEA/JSCR12 F-53, F110

3.Create 4.Goods Receipt 5.Invoice 7.Accrued

2.Chargeable 6.Post 8.Payment
Invoice (Consumption of Verification(Pa Transfer
components Deductible A/P Program
(Accrued) components) yables) Posting
(B/S) Chargeable (B/S) Unconfirmed (B/S) Semi-finished (B/S) Unconfirmed
Raw Material A/R products (B/S) GR/IR (B/S) CCA A/R (B/S) A/P
1000 1260 2100 1400 1400 840 1200 1260 882 1470 1470

(B/S) Consump. (B/S) Consump. (B/S) Confirmed (B/S) Bank

(B/S) Raw Material (B/S) CCA (P/L) Stock Change Tax Purchase Tax Purchase A/R Clearing Account
1000 1200 2100 70 42 882 1470

(B/S) Consump.tax (P/L) External (B/S) Confirmed

Sales Services (B/S) A/P (B/S) Deductible A/P A/R

60 1400 1470 882 882 882

(B/S) GR/IR (B/S) Deductible A/P

1400 882 882

(P/L) Chargeable
Raw Mat. Cost
700

(B/S) Chargeable Note: Depending on the way of offsetting, 7 and 8 is

Raw Material vice versa.
1000 700
Note: in this example, VAT rate = 5%
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SCC-Specific Configuration
IMG Menu
Subcontracting with Chargeable Components

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Activation of Subcontracting with Chargeable Components

Activate at Client Level Activate at Valuation Area Level

Table TCURM-CHARG

In this IMG activity, you activate the Table /SAPNEA/J_SC_ACT-SCCACT

Subcontracting for Chargeable
Components solution at client level. In In this IMG activity, you specify which valuation areas you want to
doing so, you activate a number of activate the Subcontracting with Chargeable Components solution
functions used in the solution. For in.
example, it allows you to create purchasing
info records for chargeable components.

The system does not transport the entries

that you make in this IMG activity.
You must carry out this IMG activity
manually in each client.

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Valuation of Chargeable Components Transaction OMSK

Create Valuation Classes BC Set: /SAPNEA/SCC_REQ_MM_VAL_58_T

View V025

In this and the following IMG activity, you customize the system so that:
 When your warehouseman records an issue of chargeable components to a subcontractor, the
system valuates the goods issues

 When your warehouseman records the receipt of semi-finished goods back from the
subcontractor, the system valuates the goods receipts

In this IMG activity, create two new valuation classes as follows:

Account Category
Valuation Class Description
Reference
3010 Raw Materials (SC) 0001
7910 Semifinished Products (SC) 0008

SAP recommends that you use the numbers 3010 and 7910 for the valuation classes,
View V_134_K unless you already use them for other purposes.

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Valuation of Chargeable Components Transaction OBYC
BC Sets:
Configure Automatic Postings /SAPNEA/SCC_COA_MM_60
/SAPNEA/SCC_COA_MM_60B

In this IMG activity, you configure the automatic postings for business transactions that involve chargeable components, for
example, goods receipts and goods issues.

Configure the automatic postings for the valuation classes that you created in the IMG activity Create Valuation Classes.

Table T030

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Valuation of Chargeable Components 1/2 BC Sets:
/SAPNEA/SCC_COA_MM_60
Configure Automatic Postings /SAPNEA/SCC_COA_MM_60B

No. CoA Trans Val. Gen. Val. Debit G/L Account Description Credit G/L Account Description
Modif Modif Class

1 CAJP AUM 0001 7910 888000 Loss - Inventory Transfer 878000 Gain - Inventory Transfer

2 CAJP BSV 0001 7910 893025 Inventory Change - Subcontracted Stock 893025 Inventory Change - Subcontracted Stock (SCC)
(SCC)
3 CAJP BSX 0001 3010 125102 Subcontracting Raw Material (OBEW) 125102 Subcontracting Raw Material (OBEW)

4 CAJP BSX 0001 7910 125103 Unfinished Products (SCC) 125103 Unfinished Products (SCC)

5 CAJP GBB 0001 BSA 3010 499000 Clearing account - stocktake results 499000 Clearing account - stocktake results

6 CAJP GBB 0001 BSA 7910 498000 Stock init. entry (offset. pstg) goods, fin.prods 498000 Stock init. entry (offset. pstg) goods, fin.prods

7 CAJP GBB 0001 INV 3010 887701 Loss- Inventory Variance (SCC) 877701 Gain - Inventory Difference (SCC)

8 CAJP GBB 0001 INV 7910 887701 Loss- Inventory Variance (SCC) 877701 Gain - Inventory Difference (SCC)

9 CAJP GBB 0001 VBO 3010 823111 Chargeable Raw Material Cost (SCC) 823111 Chargeable Raw Material Cost (SCC)

10 CAJP GBB 0001 VBR 3010 823112 Non Chargeable Raw Material Cost (SCC) 823112 Non Chargeable Raw Material Cost (SCC)

11 CAJP GBB 0001 VBR 7910 823113 Chargeable Semi. Product Cost (SCC) 823113 Chargeable Semi. Product Cost (SCC)

12 CAJP GBB 0001 VQP 3010 878200 Gain from quality control consumption 888200 Losses - consumption of quality control

13 CAJP GBB 0001 VQP 7910 878200 Gain from quality control consumption 888200 Losses - consumption of quality control

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Valuation of Chargeable Components 2/2 BC Sets:
/SAPNEA/SCC_COA_MM_60

Configure Automatic Postings /SAPNEA/SCC_COA_MM_60B

No. CoA Trans Val. Gen. Val. Debit G/L Account Description Credit G/L Account Description
Modif Modif Class

14 CAJP GBB 0001 VQY 3010 823120 Quality control cons. external mats with cost 823120 Quality control cons. external mats with cost ele.
ele.
15 CAJP GBB 0001 VQY 7910 890002 Inventory change - own materials quality 890002 Inventory change - own materials quality control
control
16 CAJP GBB 0001 ZOB 3010 823111 Chargeable Raw Material Cost (SCC) 823111 Chargeable Raw Material Cost (SCC)

17 CAJP GBB 0001 ZOB 7910 823113 Chargeable Semi. Product Cost (SCC) 823113 Chargeable Semi. Product Cost (SCC)

18 CAJP PRD 0001 3010 887001 Loss - Price Variances (SCC) 877001 Gain - Price Variances (SCC)

19 CAJP PRD 0001 7910 887001 Loss - Price Variances (SCC) 877001 Gain - Price Variances (SCC)

20 CAJP UMB 0001 3010 887901 Loss inventory val (valued -> unvalued) (SCC) 877901 Gain from valuation (valued-->unvalued) (SCC)

21 CAJP UMB 0001 7910 887901 Loss inventory val (valued -> unvalued) (SCC) 877901 Gain from valuation (valued-->unvalued) (SCC)

22 CAJP WRX 0001 461200 GR/IR-clearing - external procurement 461200 GR/IR-clearing - external procurement

23 CAJP FRL 0001 823501 Purchased Services for Subcontracting (SCC) 823501 Purchased Services for Subcontracting (SCC)

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Necessary G/L Accounts 1/2
For the Configuration of Automatic Postings BC Sets: /SAPNEA/SCC_COA_FI_29_T

Posting w/o tax Allowed

Recon. acct ready for

Post automatic. Only
Account Currency

Recon. acct type

EN Description

JA Description
Tax Category
G/L acct type
P/L acct type
Acct Grp
G/L Acct

B/S Acct

input
CoA
No.

1 CAJP 113101 X SAKO JPY * + D + Unconfirmed Accrued AR (SCC) 有償支給未収金(未確認)

2 CAJP 113102 X SAKO JPY * + D + Confirmed Accrued AR (SCC) 有償支給未収金(確認済)
3 CAJP 125101 X MAT. JPY * + + Raw material (MBEW) 原材料 (MBEW)
4 CAJP 125102 X MAT. JPY * + + Subcontracting Raw Material (OBEW) 支給原材料 (OBEW)
5 CAJP 125103 X MAT. JPY * + + Unfinished Products (SCC) 半製品 (外注品)
6 CAJP 412101 X SAKO JPY * + K + Accounts Payable – Domestic (SCC) 買掛金
7 CAJP 412102 X SAKO JPY * + K + Deductible Accounts Payable (SCC) 控除可能買掛金 (SCC)
8 CAJP 811103 X SAKO JPY * + Chargeable Component Account (SCC) 有償支給高 (SCC)
9 CAJP 823111 MAT. X N(“) JPY Chargeable Raw Material Cost (SCC) 有償原材料費 (SCC)
10 CAJP 823112 MAT. X N(“) JPY Non Chargeable Raw Material Cost (SCC) 無償原材料費 (SCC)
11 CAJP 823113 MAT. X P JPY Chargeable Semi. Product Cost (SCC) 半製品費 (SCC)
12 CAJP 823114 MAT. X P JPY Semi. Product Cost 半製品費
13 CAJP 823501 ERG. X N(“) JPY - Purchased Services for Subcontracting (SCC) 外注加工費(SCC)

(“) In case of defining it as cost element, you need to configure the default cost center via transaction OKB9.
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Necessary G/L Accounts 2/2
For the Configuration of Automatic Postings BC Sets: /SAPNEA/SCC_COA_FI_29_T

Posting w/o tax Allowed

Recon. acct ready for

Post automatic. only
Account Currency

Recon. acct type

EN Description

JA Description
Tax Category
G/L acct type
P/L acct type
Acct Grp
G/L Acct

B/S Acct

input
CoA
No.

14 CAJP 877001 SAKO X N JPY + Gain - Price Variances 収益 - 価格差異

15 CAJP 877701 SAKO X N JPY + Gain - Inventory Difference 収益 - 棚卸差異
16 CAJP 877901 SAKO X N JPY Gain - Revaluation Inventory 収益 - 在庫再評価
17 CAJP 878001 SAKO X N JPY Gain - Inventory Transfer 収益 - 在庫転送
18 CAJP 887001 SAKO X N JPY + Loss - Price Variances 損失 - 価格差異
19 CAJP 887701 SAKO X N JPY + Loss- Inventory Variance 損失 - 棚卸差異
20 CAJP 887901 SAKO X N JPY Loss -Inventory Revaluation 損失 - 在庫再評価
21 CAJP 888301 SAKO X N JPY Loss - Inventory Transfer 損失 - 在庫転送
22 CAJP 893025 MAT. X N JPY Inventory Change - Subcontracted Stock 外注品在庫変更
(SCC)

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