How do you subcontract in SAP MM?

Here are the steps to successfully complete a subcontracting process in SAP MM:

Step 1: Creating a subcontracting Info record; T Code – ME11
Step 2: Creating a subcontracting PO with an item category; L – T Code –  ME21N —>

• Enter Item Category L
• Material, PO Quantity, Delivery Date, Net Price, Plant
• Click on the Item Details
• Go to Tab Material Data
• Now, in Components, select Explode BOM
• Click on the Components button
• Enter the sub-components
• Finally, go back & Save.

Step 3: Create a Transfer Posting with the Movement Type 541 for issuing sub-components into the vendor T Code -ME2O/ MIGO.

Step 4: Make a Goods Receipt for the finished product – T Code -MIGO

Step 5: Lastly, create an Invoice Receipt for the services performed – T Code – MIRO