What is subcontractor in SAP MM - Materials Management?

SAP Term: subcontractor

• Component: MM

• Component Name: Materials Management

• Description: In the SAP system, an external supplier who performs certain work or manufactures a certain material or product for a customer using materials provided by the customer for this purpose.

Smart SAP Assistant

• Key Concepts: 
  Subcontractor is a term used in SAP Materials Management (MM) to refer to an external vendor or supplier who provides goods or services to a company. The subcontractor is responsible for the delivery of the goods or services, and the company is responsible for payment. 
  
  How to use it: 
  In SAP MM, subcontractors are used to manage the procurement of goods and services from external vendors. The company can create a purchase order for the subcontractor, which will include details such as the quantity and type of goods or services required, delivery date, payment terms, and any other relevant information. The subcontractor will then deliver the goods or services according to the purchase order. 
  
  Tips & Tricks: 
  When creating a purchase order for a subcontractor, it is important to ensure that all relevant information is included in the order. This will help to ensure that the subcontractor delivers the goods or services on time and according to the agreed terms. 
  
  Related Information: 
  For more information on using subcontractors in SAP MM, please refer to the SAP Help Portal.