Subcontracting in SAP S/4 HANA

              In previous versions of SAP ERP, component materials to be provided to the subcontractor could be planned as a separate stock. However, with SAP S/4HANA, a subcontracting MRP area is the default option for subcontracting planning. Subcontracting will appear under the general plant stock if there is no MRP area maintained for the supplier.
 
Also, in previous versions of SAP ERP, We could check subcontracting stocks by supplier
by running reports from a specific IMG menu path. This transaction is now available as an app (Display Subcontracting Stocks by Supplier) in SAP S/4HANA
 
 
Ø  In SAP S/4HANA, MRP areas have to be created for every subcontractor.

Ø  If MRP area specific material master records don't exist, MRP uses default planning parameters.

Ø  This differs from classic SAP ERP for subcontracting, in which we could plan either with or without MRP areas.

Ø  If we elected to plan without MRP areas, we weren't able to use the full functionality around lot sizing and were only able to order full lot sizes.
 
Ø  If we chose the MRP area route, material data on an MRP area was required for all
components. These two options are now combined into one driven by MRP areas, but it doesn't require material data on all components and can support full-lot sizing and sourcing functionality.
 
Upgrading MRP Subcontracting to SAP S/4HANA
To upgrade MRP subcontracting processes in SAP ERP to SAP S/4HANA, we need to
take stock of your existing subcontracting suppliers and processes and identify any
gaps, execute a standard upgrade to SAP S/4HANA, and then at postprocessing proceed
as follows:
 
1. Maintain subcontracting MRP areas for all subcontracting suppliers requiring provision
stocks to be planned separately from requirements. The customizing entry in the supplier master is sufficient to trigger stock transfers and reservations from the plant to the subcontracting MRP area.
 
we only have to maintain entries in the material masters if special situations exist for lot sizing, purchase requisitions/ orders, and/or third-party order processing.
 
2. Run regenerative MRP and test.