---
title: How to Configure SAP S/4HANA Asset Maintenance Subcontracting
description: See how to configure SAP S/4HANA Asset Maintenance subcontracting. Explore the 10-step process in illustrated form, and learn how to customize settings.
image: https://blog.sap-press.com/hubfs/How%20to%20Configure%20SAP%20S4HANA%20Asset%20Maintenance%20Subcontracting.png
---

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# How to Configure SAP S/4HANA Asset Maintenance Subcontracting

![SAP PRESS](https://blog.sap-press.com/hubfs/Twitter_profile_pic.svg)  by [SAP PRESS](https://blog.sap-press.com/author/sap-press)

The *subcontracting* business process in SAP S/4HANA Asset Maintenance, also known as subcontracting for maintenance, repair, and overhaul (MRO), describes the process associated with having a piece of equipment (i.e., a material serial number) repaired by a service provider.

 

In contrast to the processes used for external processing, the object to be repaired or maintained is sent to the service provider, processed there, and then returned.

 

The subcontracting process comprises the following steps (see the map below):

1. You have a faulty part that requires repair and is to be processed by a service provider. You therefore create a maintenance order with a material serial number and a normal order type. In this order, you enter a subcontracting operation (for which the **Subcontracting** indicator is set) and assign a material (for which the **Refurbishment** indicator is set) to this operation.
2. The [SAP S/4HANA](https://learning.sap-press.com/sap-s4hana) system now uses the maintenance order to create a purchase requisition for the external repair or maintenance service with a subcontracting item (item category L) and the material serial number.
3. You convert the purchase requisition into a purchase order for the external repair or maintenance service. The purchase order item is identified as a subcontracting item (item category L) and is assigned the part that is to be returned following repair (material serial number).
4. You use an outbound delivery to send the part to be repaired to the subcontractor.
5. The parts provided are managed as stock of material provided to the vendor (subcontracting stock). The provision represents a transfer posting from unrestricted use stock to stock of material provided to the vendor (subcontracting stock).
6. The subcontractor repairs, modifies, replaces, or exchanges the faulty part and returns the serviceable part.
7. For the part delivered, you create a goods receipt posting that refers to the subcontracting item in the purchase order.
8. For the components, a goods issue is posted from the subcontracting stock.
9. You receive an invoice for the service provided by the subcontractor.
10. You complete the maintenance order.

Make sure that business functions LOG\_EAM\_ROTSUB, LOG\_EAM\_ROTSUB\_2 and LOG\_MM\_SERNO are activated within S/4H\_ALWAYS\_ON\_FUNCTIONS.

 

![Subcontracting Process](https://blog.sap-press.com/hs-fs/hubfs/1977_07_030.png?width=1738&name=1977_07_030.png)

 

You must then configure the Customizing settings discussed in the following sections.

 

## Define Serial Number Profiles

You use this Customizing function to define serial number profiles. You must assign a material serial number to each piece of equipment that you want to refurbish by means of a subcontracting process. In the material master record, you must assign a serial number profile to this material at the plant level.

### Prerequisites

There are no special prerequisites.

### Customizing Path

**Plant Maintenance and Customer Service >** **Master Data in Plant Maintenance and Customer Service >** **Technical Objects >** **Serial Number Management >** **Define Serial Number Profiles**

### Transaction

OIS2

### Settings

You must assign at least the following three serializing procedures to each of the serial number profiles that you want to use for the subcontracting process (see the figure below):

- **MMSL**: You can enter a goods receipt and goods issue for the material serial number (refer to steps 4, 5, 7, and 8 in the map).
- **POSL**: You can manage serial numbers in purchase orders (step 3).
- **PRSL**: You can manage serial numbers in purchase requisitions (step 4).

![Subcontracting: Serial Number Profile](https://blog.sap-press.com/hs-fs/hubfs/1977_07_031.png?width=1457&name=1977_07_031.png)

 

## Purchase Requisition: Define Document Types

You use this Customizing function to manage the document types and item categories permitted for purchase requisitions.

### Prerequisites

You must maintain the serial number profiles beforehand.

### Customizing Path

**Materials Management >** **Purchasing >** **Purchase Requisition >** **Define Document Types**

### Settings

For the document type that you want to use for the subcontracting process (e.g., **NB** = **Standard Purchase Requisition**), call item category **L** (**Subcontracting**), and define the serial number profile that you want to use (see figure below). You can then assign a material serial number to a purchase requisition (refer to step 2 in the map).

 

![Subcontracting: Purchase Requisition Item Category](https://blog.sap-press.com/hs-fs/hubfs/1977_07_032.png?width=1738&name=1977_07_032.png)

## Purchase Order: Define Document Types

You use this Customizing function to manage the document types and item categories permitted for purchase orders.

### Prerequisites

You must maintain the serial number profiles beforehand.

### Customizing Path

**Materials Management >** **Purchasing >** **Purchase Order >** **Define Document Types**

### Settings

For the document type that you want to use for the subcontracting process (e.g., **NB** = **Standard Purchase Order**), call item category **L** (**Subcontracting**), and define the serial number profile that you want to use (see below). You can then assign a material serial number to a purchase order (refer to step 3 in the map).

 

![Subcontracting: Purchase Order Document Type](https://blog.sap-press.com/hs-fs/hubfs/1977_07_033.png?width=1745&name=1977_07_033.png)

## Define Material Provision Indicators

To provide a material for subcontracting, you must assign a material provision indicator to the item in the order. This indicator then flags this item as a refurbishment material (step 1 in the map).

 

You use this Customizing function to define material provision indicators.

### Prerequisites

There are no specific prerequisites.

### Customizing Path

**Plant Maintenance and Customer Service >** **Master Data in Plant Maintenance and Customer Service >** **Bills of Material >** **Item Data >** **Define Material Provision Indicators**

### Transaction

OICO

### Settings

Define a material provision indicator for which you set the indicator **A&D MP** (Aerospace & Defense material provision) (see below).

 

![Subcontracting: Material Provision Indicator](https://blog.sap-press.com/hs-fs/hubfs/1977_07_034.png?width=1378&name=1977_07_034.png)

 

## Subcontracting Is Available for All Customers

Subcontracting was originally developed for the SAP for Aerospace & Defense industry solution but was later made available for general use. It’s part of S/4H\_ALWAYS\_ON\_FUNCTIONS and automatically activated.

 

These Customizing settings should now enable you to execute the subcontracting process in [SAP S/4HANA Asset Maintenance](https://learning.sap-press.com/sap-s4hana-logistics#asset-management).

 

[Dive into logistics SAP S/4HANA with this learning journey.](https://learning.sap-press.com/learning-journey/sap-fico)

 

*Editor’s note*: This post has been adapted from a section of the book [*Configuring Plant Maintenance in SAP S/4HANA*](https://www.sap-press.com/configuring-plant-maintenance-in-sap-s4hana_5900/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2604_chapter7&utm_content=2604)by Karl Liebstückel.

## Recommendation

[![Configuring Plant Maintenance in SAP S/4HANA](https://blog.sap-press.com/hs-fs/hubfs/social-suggested-images/2604-Oct-28-2024-01-02-18-4833-PM.jpg?width=170&name=2604-Oct-28-2024-01-02-18-4833-PM.jpg)](https://www.sap-press.com/configuring-plant-maintenance-in-sap-s4hana_5900/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2604_chapter7&utm_content=2604)

**Configuring Plant Maintenance in SAP S/4HANA**

To successfully manage assets in SAP S/4HANA, you need to tailor plant maintenance to your exact specifications. This book is your step-by-step guide! Plan your plant maintenance project, and then dive into detailed configuration for the organizational structure, generic functions, and technical systems. Follow click-by-click instructions to set up key secondary processes, including refurbishment, subcontracting, and pool asset management. Get details on the SAP Fiori launchpad and usability to customize your system from end to end!

[Learn More](https://www.sap-press.com/configuring-plant-maintenance-in-sap-s4hana_5900/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2604_chapter7&utm_content=2604)

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