In the standard SAP subcontracting process, the consumption of components provided to the subcontractor is triggered by a single transaction in the buyer's ERP system. When the buyer receives the finished goods from the subcontractor, they perform a Post Goods Receipt (e.g., via transaction MIGO) against the subcontracting purchase order. This action simultaneously records the receipt of the finished product (e.g., movement type 101) and posts the goods issue for the components consumed from the special stock "stock provided to vendor" (e.g., movement type 543). This automatic consumption posting is known as backflushing and is the standard procedure for this scenario.

B. Component inventory: This refers to the stock balance of the components. It is the object of the transaction, not the transaction itself that triggers consumption.

C. Update Inventory: This is a generic description of the result of a transaction. It is not the specific business transaction that initiates the component consumption.

D. Create ASN for finished goods: An Advanced Shipping Notification (ASN) is a document sent by the supplier to inform the buyer of an impending delivery. It does not post any goods movements or consume components in the ERP system.

1. SAP S/4HANA Documentation - Goods Receipt for Subcontract Order: "When you post the goods receipt

the system determines the components that were used for this subcontract order and creates a goods issue item for each component. The system posts the consumption of the components from the stock of material provided to vendor." (SAP Help Portal

S/4HANA 2023

Materials Management > Inventory Management and Physical Inventory (MM-IM) > Goods Receipt > Special Forms of Goods Receipt > Goods Receipt for Subcontract Order).

2. SAP S/4HANA Documentation - Subcontracting: "The process starts with a purchase order for subcontracting. [...] The subcontractor delivers the ordered material. You post the goods receipt for the end product. The receipt of the end product and the consumption of the components are posted in one step." (SAP Help Portal

S/4HANA Cloud

Public Edition 2402

Sourcing and Procurement > Operational Procurement > Subcontracting).

3. SAP ERP Central Component Documentation - Subcontracting: "When the finished product is delivered

you post a goods receipt to the subcontract order. The system determines the necessary components from the bill of material and creates a goods issue for these components from the stock of material provided to vendor." (SAP Help Portal

SAP ERP 6.0 EHP8

Logistics > Materials Management (MM) > Inventory Management (MM-IM) > Special Stocks and Special Procurement Forms (MM-IM) > Subcontracting).