MM / P2Pintermediate

MM Subcontracting Part 2: Subcontracting BOM, Component Determination and Provision

Key takeaway

How components get into the subcontract PO: BOM explosion (BOM usage, validity, quantity), manual components, explosion date, components supplied by the supplier vs by you, provision via the subcontracting cockpit, and third-party provision from another supplier.

Explanation

📌 KEY POINTS
✅ Components are determined by BOM explosion in the PO (per BOM usage, date and plant) or entered manually.
✅ BOM changes affect only new explosions — existing POs keep their component list unless re-exploded.
✅ Provision via ME2O cockpit (541) or third-party provision (supplier A ships to subcontractor).
✅ Components supplied by the subcontractor itself are not provided or consumed from your stock.
⚠️ Outdated BOMs cause wrong component consumption at GR.

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▶ WHERE WE ARE
Part 1 covered the flow. Now components.

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▶ 1. BOM EXPLOSION

BOM usage for subcontracting, validity, alternatives; explosion in PO.

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▶ 2. MANUAL COMPONENTS

Add/change in PO component overview.

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▶ 3. PROVISION

ME2O selection by supplier/material; 541 postings; delivery with outbound delivery option.

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▶ 4. THIRD-PARTY PROVISION

Component PO to supplier A with delivery address subcontractor; GR into stock at subcontractor.

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▶ 5. AVAILABILITY

Check components before provision; MRP for components.

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▶ STEP BY STEP

Maintain subcontracting BOM.
Create PO and check components.
Provide via ME2O.

✅ CHECKPOINT: provided quantities match PO component requirements.

Code example

ABAP Code

===== STEP 1: BOM =====CS01 BOM for FG-100 (usage per config) → components C-1, C-2 ===== STEP 2: PO components =====ME21N item L → components tab: explosion date, quantities; manual change if needed ===== STEP 3: provision =====ME2O → select supplier 300500 → post 541 | third-party provision: component PO with ship-to subcontractor → GR to special stock O

Real project scenario

Hundreds of subcontract GRs failed because components weren't at the supplier: buyers created POs but nobody provided components. A daily ME2O run of requirements vs stock at supplier and alerts for shortages fixed the process.

Common mistakes

Outdated BOMs.
No provision process.
Manual components not maintained.
Third-party provision without address.
Ignoring component availability.

Best practices

Keep BOMs current.
Use ME2O daily.
Plan component MRP.
Document third-party provision.
Check before GR.

Interview angle

Questions: "How are components determined?", "What is ME2O?", "What is third-party provision?"
Strong answer: BOM explosion, manual components, ME2O provision, third-party provision, availability.

Practice this lesson

Quick check

1. Hundreds of subcontract GRs fail because components are missing at suppliers. What process fixes this?

2. What is third-party provision in subcontracting?

3. A BOM change is not reflected in existing subcontract POs. Why?

Interview questions

1. How would you architect a subcontracting solution where the subcontractor also performs external services requiring service entry sheets, and components must be provided cross-company from a different legal entity?

Answer it in your own words first, then compare.

2. Subcontract GRs consume wrong components, and components often aren't at the supplier in time. How do you fix component determination and provision?