SAP Enhancement Pack 4 for Outsource Manufacturing or Subcontracting Operations

SAP Enhancement Pack 4 for Subcontracting Manufacturing or Operations

By Ross Christoph

SAP Enhancement Pack 4 provides additional functionality for processing outsource manufacturing or subcontracting operations.

This includes the ability to record real time consumption of the subcontract material components instead of recording the consumption simultaneously with goods receipt of the finished material. Also included is the automatic creation of a CO production order for every purchase order.

This allows you to integrate subcontracting activity with production orders and process orders that you use for internal manufacturing in CO processing and reporting.

With a single SAP instance implementation this functionality, along with group valuation, can be utilized for enterprise wide internal subcontracting.

A program modification is required for the creation of the cost estimate in group valuation for the company code which owns the inventory - this cost estimate needs to use the manufacturing plant’s cost estimate instead of the inventory owner’s purchasing information record’s price. The recording of the group value on the inventory owner’s invoice receipt is possible with standard SAP.

Learn more about the SAP S/4HANA sessions at the Controlling 2024 conference.