Recording Third-Party Manufactured Products in SAP: A Simple Guide for Non-Warehouse Professionals

As a manufacturing company that outsources some production to a third-party manufacturer, you may face challenges in tracking finished products and recording them as inventory in your SAP software. This process can seem complex, especially if you’re not a warehouse or supply chain expert. However, with the right steps, you can seamlessly bring those finished products into your SAP system as stock, ensuring accurate records and smooth operations. This article explains a straightforward solution using SAP’s subcontracting process, broken down into easy-to-understand steps, so anyone in your organization can follow along. Let’s dive in! Understanding the Scenario Your company sends raw materials or components to a third-party manufacturer, who uses them to create finished products. These products are then returned to you, and you need to record them as inventory in SAP, a widely used software for managing business operations. The goal is to update your stock records quickly and accu...