What is subcontract order in SAP MM-PUR - Purchasing?

SAP Term: subcontract order

• Component: MM-PUR

• Component Name: Purchasing

• Description: An instruction to a supplier subcontractor to manufacture an ordered part, material or assembly using specified "materials to be provided" free-issue materials. A subcontract order contains a maximum of one order item for the ordered material, service, or work, and one or more "material to be provided" items for materials that the orderer makes available to the subcontractor, without charge, for processing.

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• Key Concepts: 
  A subcontract order is a type of purchase order in SAP Materials Management (MM-PUR Purchasing) that is used to purchase goods or services from an external vendor. It is used when the vendor is responsible for the entire production process, from raw materials to finished goods. The subcontract order contains all the necessary information about the vendor, such as delivery date, payment terms, and quality requirements. 
  
  How to use it: 
  Subcontract orders are created in SAP MM-PUR Purchasing by entering the vendor’s information and the details of the goods or services to be purchased. Once the order is created, it can be tracked and monitored in SAP. The vendor can also be contacted directly through SAP if there are any issues with the order. 
  
  Tips & Tricks: 
  When creating a subcontract order, it is important to ensure that all of the necessary information is included. This includes delivery date, payment terms, and quality requirements. It is also important to ensure that the vendor has all of the necessary resources to complete the order on time and to the required quality standards. 
  
  Related Information: 
  Subcontract orders are closely related to other types of purchase orders in SAP MM-PUR Purchasing, such as stock transport orders and consignment orders. It is important to understand how these different types of orders work in order to ensure that the right type of purchase order is used for each situation.