In the SAP S/4HANA subcontracting process, components provided to a vendor are managed as a special stock category called "Stock of Material Provided to Vendor". This stock remains the legal property of the company and is therefore managed as part of its own total valuated stock. This ensures it is included in inventory valuation and is visible to Material Requirements Planning (MRP). This special stock is tracked at the plant level and is assigned to the specific subcontractor. It is not managed at the storage location level because the materials are physically located at the vendor's site, not within a company's own storage facility.

B. This special stock is explicitly managed at the plant level, not the storage location level, as it is physically located at the vendor's premises.

D. The components remain the company's property and part of its valuated stock; ownership does not transfer to the supplier during this process.

1. SAP S/4HANA Product Assistance

"Stock of Material Provided to Vendor": In the section on Subcontracting within Inventory Management

the documentation states: "This special stock has the following features: It is part of your own valuated stock. It is managed at plant level because the stock is not stored in your company but on the vendor's site." (Path: SAP S/4HANA -> Product Assistance -> Enterprise Business Applications -> Sourcing and Procurement -> Inventory -> Subcontracting -> Stock of Material Provided to Vendor).

2. SAP Learning

Course S4525 "Inventory Management and Physical Inventory in SAP S/4HANA": Unit 5

"Special Forms of Stock"

explains that special stock 'O' (Stock of material provided to vendor) is a type of company-owned special stock that is managed at the plant level per vendor

not at the storage location level.