SAP Subcontracting Component Tracking Worksheet
Material you send to a subcontractor still belongs to you and sits in SAP as special stock at the vendor. This worksheet reconciles components issued with finished goods received so you know what should be on the vendor's floor and what is missing.
| Subcontract PO | Component | Qty per finished unit | Qty sent (541) | Finished units received (101) | Expected consumption | Expected at vendor | Vendor reported stock | Variance | Unit cost | Variance value | |
|---|---|---|---|---|---|---|---|---|---|---|---|
320 | 180 | -2 | -$29 | ||||||||
1,280 | 720 | -2 | -$1 | ||||||||
300 | 0 | 4 | $39 | ||||||||
600 | 20 | 0 | $0 | ||||||||
90 | 60 | 2 | $44 |
Expected stock at the vendor is quantity sent less BOM quantity times finished units received. In SAP, components provided to a subcontractor are posted with movement type 541 and consumed when the finished goods receipt is posted. Scrap and yield loss show up as variance, so agree an allowed scrap rate in the contract.
Subcontractor stock reconciliation
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How to use the worksheet
Add a row for each component on a subcontract purchase order. Enter the BOM quantity per finished unit, the quantity sent, the finished units received so far and the stock the vendor reports on hand. The sheet computes expected consumption, expected stock at the vendor, the variance and its value. A positive variance means the vendor holds more than expected, while a negative one means material is missing, scrapped or consumed without a receipt. Export to Excel for the monthly reconciliation.
The SAP subcontracting flow
A subcontract PO uses item category L and a BOM of components. Components are transferred to the vendor with movement type 541, which moves them from your unrestricted stock to subcontractor stock without leaving your ownership. When you post the goods receipt of the finished product, SAP consumes the components with movement type 543 based on the BOM. The ME2O transaction shows component requirements and stock at each subcontractor, and MB5O lists stock provided to vendors.
Reading variances
A small negative variance usually reflects normal scrap, which the contract should cap. Large or repeated differences point to missing material, wrong BOM quantities or receipts posted at the wrong quantity. If the BOM is wrong, consumption posts incorrectly every time and the variance grows steadily. Value the variance at unit cost and set a threshold above which the vendor must explain it. Reconcile at least monthly and before year-end.
Common mistakes
Forgetting to post 541 for material physically shipped leaves book stock in your warehouse that is not there. Posting finished goods without checking the BOM overstates or understates consumption. Treating subcontractor stock as your own unrestricted stock in planning causes MRP to promise material that is on another site. Finally, vendors rarely count unless asked, so schedule a counted confirmation each period.
Frequently Asked Questions
Which movement type sends components to a subcontractor?
Movement type 541 transfers components to subcontractor stock. Consumption is posted automatically with 543 when the finished goods receipt is entered against the subcontract PO item.
Where do I see stock at a subcontractor?
Transaction ME2O shows requirements and stock provided to each subcontractor, and MB5O lists stock provided to vendors. Special stock O is the stock category for subcontractor stock.
How do I handle scrap at the vendor?
Agree scrap allowances in the contract, then either charge the vendor for excess scrap or post a component adjustment through a defined process. Leaving the variance unexplained creates inventory errors.
Can I enter consumption manually?
Yes, SAP allows components to be adjusted at goods receipt in the subcontracting component screen. Use it when actual usage differs from the BOM, and record why.
Netray can build a read-only subcontractor stock reconciliation from your SAP data so this runs without manual entry.
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