Hi Experts,
Client wants a detail Pros & Cons on maintaining Loan Licensing as Manufacturing plant in SAP or as a Subcontracting Vendor.
I have prepared a list. Expert can add their points.
| LL as a Plant | LL as a subcontractor |
| ADV | ADV |
| Tracking can be granular level. Production flow, Quality flow, SCM flows | Plant code creation can be avoided for each Sub contractor |
| WIP can be tracked | SAP Subcontracting process is a straight fit for your above scenario including excise part |
| Raw material can be supplied to LL Plant directly | Raw materials from Material vendors can be supplied to SC vendor |
| whole excise details can be maintain seperately | Subcontracting challan can be created for excise records |
| Conversion charges will be loaded as activity to Process order. | SC Vendor stock can be monitored and tracked. |
| Conversion charges can be maintained at SC purchase order level | |
| Only Vendor master required | |
| Scheduling agreements can be maintained | |
| DISADV | DISADV |
| Creation, testing of Plants is time consuming | WIP cannot be tracked, however Manual FI JVs for WIPs can be posted |
| work load, dedicated team | |
| Data Migration | |
| LL is discontinued, plant reamains in SAP. | |
| Scheduling agreements cannot be maintained aainst a LL Vendor |
BR
Subbu.