Vendor Payment - Sub Contracting

Hi All
We have to make the payment, to the Sub- Contractor on the per Pc bases.
How we can handle the same in PO.
What will be the a/c entry, at the time of GR and at the time of IV.
SF Goods Send
FG Goods Recived
500 / Pc Charges.
With Regards
Niti narayan

Hi,
DR FG Stock/ SC By-Product Stock
CR Change in Stock (FG/ SC By-Product )
(for finished goods received)
DR Subcontracting Charges
CR GR/IR Clg
(for moneys payable to Subcontractor)
DR Consumption (Components)
CR Change in Stock (FG/ SC By-Product )
(material provided to Vendor is now charged to expense)
Regards,
LSM

Similar Messages

Creation of challan during the return delivary to vendor in sub contracting

Dear All,
I have a requirement where my client wants to have a challan made for materials that they are sending back via return delivary.
scenario
In the subcontracting process we are receiving the goods via MIGO but with Quality inspection enabled. For ex: we have recieved 100 goods from a sub contractor(BOM component ratio= 1:1 with the finished product and the component). Now in qa32 we have generated the lot of 100 materials. Now out of the 100 we have accepted and posted 50 materials in the unrestricted field in the inspection lot tab of usage decision and rejected the rest.
Here rejected the rest means we have entered the 50 remaining materials in the return delivary tab. Now when we post it we can see that system immediately has posyted a material document in the background for movemnt type 122 for the materials that we have done the return delivery. There is a change in stock in MMBE also.
I WANT TO HAVE A CHALLAN CREATED FOR THOSE MATERIALS THAT ARE SENT AGAIN TO THE VENDOR.
IS IT POSSIBLE??? CAN WE INCLUDE 122 MOV TYPE IN THE MOV TYPE GROUP AND IF I ADD WHAT IMPACT WILL IT HAVE .
pL DISCUSS.

Hi,
Two options to consider.
When the GR has been posted for the finished product and the vendor indicates that they used more (or lost some in the process) you can change the quantities in MIGO at the time of GR (by expanding the lines and changing the quantities), or or you can do this later by using a "susequent adjustment".
If you mean scrapping that does not relate to one PO then what we have done in the past is just to carry out regular stock checks and any shortages are handled by posting the difference via a scrapping movement type (remember you can scrap from subcontract directly).
I am sure that there are other options but these have worked in several implementations so far.
Steve B
Message was edited by:
Stephen Birchall

Sub contracting vendor returns

Hi,
We have an issue that,
when we return to vendor a sub contract Finished goods from Quality Inspection
(T code QA32).System will return components(mvmt 544) also along with FG
but my clients want only the FG should be returned to Vendor not components
(becaz it is difficult to track all the components and becaz of excise recon-
cilation issues also)
What will be the solution.
Pl help
Thanks
Prasad

Hi,
We have an issue that,
when we return to vendor a sub contract Finished goods from Quality Inspection
(T code QA32).System will return components(mvmt 544) also along with FG
but my clients want only the FG should be returned to Vendor not components
(becaz it is difficult to track all the components and becaz of excise recon-
cilation issues also)
What will be the solution.
Pl help
Thanks
Prasad

Sub Contracting Query

Hi PP Gurus,
I am working on a Sub-Contracting Scenario.
Here we have a routing with 3 processes of which 2nd process is being sent outside to the vendor for processing. I have made following settings for the sub-contracting to take place.
1.     Purchasing view maintained for the components which are to be sent outside.
2.     Vendor details are available, including the Info record.
3.     Control key maintained PP02 for the 2nd Operation.
4.     In routing, in 2nd opn. I have maintained specific component which is assigned.
5.     IN MRP2 view of that material, have maintained Procurement Type u2018Xu2019 and Special procurement key as u201830u2019.
After releasing and saving the Production order it is not generating any Purchase Requisitions (PR) for me to create a PO for that.
Please help me understand that why is the sub-contracting not taking place based on the information mentioned above.
Thanks in advance,
Harris

Sir,
Thanks for the reply; it has helped me understand the scenario.
Just would like your explanation in my wordsu2026
My scenario
Suppose I have a FERT to be made say name:     FG1
It has BOM components:               SF1 & SF2
Routing it follows is:                    10 u2013 20 u2013 30
Opn 20 is to be Sub Contracted for Component SF2
As per your explanation
Mtrl master for component SF2 before opn 10 = SF2A
Mtrl master for component SF2 after opn 10    = SF2B (with Sub Contrc. F30 with Info Rec. and Vendor details)
BOM to be crtd. For SF2B calling SF2A.
BOM components for FG1 would now contain SF1 & SF2B
PO to be released for SF2B with material SF2A would be issued to the vendor.
Sub-contracting processes at Vendor
GR
Also, will the PR be generated for SF2B after I save the Production Order for FG1.
Kindly confirm the above. So that I can proceed as per your information.
Thanks sir,
Harris

Sub Contracting Challan

Hi All,
In Subcontracting process first we are sending the raw material to sub contracting vendor with Sub Contracting Challan. Now subcontrating Vendor return the raw material due to quality problem. So, please suggest what process we have to do in SAP ? Because we have to closed the sub contracting challan and stock of raw material should come under unrestricted use.
Thanks in Advance.....
Sanjay

HI
Take back material with MB1B mov type 542. Reconcile the challan wrt this 542 mov type document.
And then complete the challan also.
Your Subcon PO is still open and u can send fresh material to vendor with MB1B 541 and make a new challan and then complete ur process.
Thank You

Multi-level sub-contracting involving multiple vendors

I need complete process to understand for following sub-contracting scenarios.
Customer is purchaseing materials from vendor1 with an instruction to supply it to vendor2 for further processinng. Vendor2 returns the materials to customer. Customer needs to create PO to vendor1 and subcontracting PO to vendor2 so that their payment can be settled through IR from vendors.

->1-> Your Plant will raise Raw material PO on vendor V1 . This PO must have "SC vendor" ticked along with the V2 vendor specified in the Delivery Address tab in PO item .
-> 2: Your Plant will raise a Subcontracting PO -item category L , to Vendor V2 . (this PO will have the Parent component which the V2 vendor is going to give back to you. ) . the BOM of the Parent component will have the Chile specified as the Raw material you buy from V1.
->3-> When V1 delivers material to V2, you(or someone at V2 location with system access) will do MIGO against the Raw material PO . this will generate a material document with movement type 101-O , and the raw materials will be avaiable at "Suncontractors stock " with special stock "O" which can be seen in MBLB .
-> Create jobwork challan against the 101-O material document in J1IF01.
->4-> when the V2 processes the components and sends you the Parent material , you will do MIGO against the subcontracting PO .
->5-> Reconcile Jobwork challan in j1IFQ against above MIGO Doc number.

Sub-Contracting material Issued to Vendor and balance to be Issud

Hi,
Sub-Contracting material Issued to Vendor and balance to be issued against the Sub-contracting Purchase Order.
Please suggest T.Code for the same. (Same Like ME2O, but PO number should be an input parameter)
For example I have Created PO with header Material for 1 quantity which having one child item and qty say 20 numbers, and issued child material to vendor 10 numbers (541) and balance is to be issued to vendor is 10 numbers, now I want a report which gives PO number, Header item with qty, total requirement of qty for the child item with line item number, issued child item with qty and balance to be issued child item with qty.
Thanks
Ramesh.G

Report MB51 is there. Here you have to input your Purchase order number and execute but, it will show only material issued to subcontractor through 541. It will not show the balance quantities.
And there is no such standard report which will show information how much issued to subcontractor and how much is balance based on Purchase order.
You can develop a z report with the help of abaper.

Sub-contracting at two different vendors directly monitored by the company.

Initially the raw material is supplied to a sub-contracting vendor A by the company to process it. After vendor A finishes processing it, the material will be shipped by vendor A to vendor B on behalf of the company for further processing which marks the end. The material carries the same name X throughout the process flow. The company should be able to monitor the stock at both the sub-contractors A and B at any given point of time. However, the company pays both the vendors A and B through separate invoices.
How do we realize this in SAP MM.

I'm not sure what you mean by the material having the same name, but the process is like this:
BOM 1: Header=FG, son=SFG (assembled by vendor A)
BOM3: Header=SFG, son=RawMaterial
FG: Procurement type F, Special procurement=30 (subcontracting)
SFG: same
Create subcontracting info records for both FG and SFG.
Then either from MRP or manually create PR\PO for both vendors.
Move stock of RM to A (transfer to subcontracting stock).
Do Goods Receipt of SFG into YOUR STOCK (even if the material doesn't really arrive), then move SFG to B (in the system). Physically material moves directly from A to B.
Last step, when FG arrives, you do again GR into your stock.

Sub Contracting Order & Vendor Return

Hi,
We use to send Materials to our Sub Contracting Vendor (MB1B - Mov. Type 541).
Now in one of the cases, we had to cancel all the Orders given to the Vendor, and we want the Materials back from the Vendor.
The Materials need to move to Quality also, as per our requirement from the Quality Department.
Should we take back the Materials with Mov. Type 542 or is there any other Movement Type for the same.
What all changed needs to be done in MM& QM.
Also requested to send me the List of Movement Types.
Thanks & Regards,
P K Karn

Hello Srinivas
I have the same requirement, I was going through the process you mention but I was unable to find the Inspection lot origin 08
(stock transfer) in OMJJ transaction.
Please Can you eloborate on this.
Thanks in Advance
With regards
Srikanth
Edited by: Srikanth Pusian on Aug 27, 2008 8:15 PM

Sub-Contracting Vendor

Could a normal vendor (supplying material / services) be a Subcontracting vendor ?
i yes , then how? are there any settings?

Hi There
Create the sub contracting info record for that vendor with the material you are going to get the Services/Value addition process from them,
Thanks
Senthil

Sub-contracting Vendor - De-activate

Hi All,
In Sub-contracting, after creating the Sub-contrating PO, I am trying to transfer the BOM to vendor, but right now the material provide to vendor is manadatory field(i.e Vendor)
The requirement that while transfering the BOM to Vendor, the system should not ask the vendor. Where to make the filed optional.

Hi,
Actually Vendor must be maintained during Transfer Posting with 541
But you can go to OMBW
Here double click on 541 movement type
Now double click on "Materials management" and mark Vendor as optional.

Return of scrap from vendor Sub contracting

Dear gurus
Pls advice me on how to map this scenario
we are sending two raw materials to subcontractor for a semi finished product. during the process scrap is also generated which is of value to the organization and they need to receive it from the sub contractor.
now hot to work on this scenario
your valuable advice is greatly appreciated
regards
John

Hi,
create a material master record for the scrap material. Maintain the scrap material with a negative quantity either in the BOM or in the material components while creating the subcontracting PO.
Post the components to Vendor's stock with movement type 541. Later send the materials to vendor physically. While receiving the materials (Goods Receipt) w.r.t.the sub contracting PO with MT 101, the following postings happen,
components will be posted with movement type 543 ( - ) and the scrap with MT 545 'O' (stock category) [MT 545 - material lying at Vendor's location]. Later u can take back this scrap material from the vendor with movement type 542. This is the complete procedure in terms of goods movements.
Don't forget to Reward, if found useful.
Regards,
Varma

Sub-contracting with excise duty..?

Hi all
can anybody explain me the sub-contracting process with excise duty , here we are going create excise invoice(J1IS instead of sub-contract challan) and what abt material document for sending out materials
whether v an use excise invoice as material transfer document to jobber place or what.
Please explain me with example ..
Regards
sap-mm

hi ,
you can try:
1.Do the MB1A with 202 mvt type to get back the material from the Work location Cost center to Storage location.
2.Create the Subcontracting PO without payment of excise duty ie., with subcontracting challan. Here the components provided to the vendor & material at item overview should be the same.
3.Do the MB1B - 541 Mvt type transfer posting.
4.Create the subcontracting challan w r t material doc by J1IF01
5.Do the MIGO for SC PO.
6.Reconcile the SC Challan.
7.If the qty is fully reconciled then you can complete the challan.
8.Do the LIV for SC PO.
9.Do the MB1A with 201 MVT type to issue the material to the Work location.

Sub contracting - ME2O - with delivery

hi all,
To stock transfer against SC PO using Trn ME2O, we have 2 option. one is with in IM(Post Goods Issue) the other is using shipping(create delivery).
Wat r the pre requisite setting to create delivery. Plz list the T.Codes sequentially.

hi,
To create Subcontracting challan:
J1IF01 - Creating sub contracting Chelan
J1IFQ - Reconciliation for Chelan
J1IF13 - after receiving all items
Subcontracting without Payment of Duty
Creation of Subcontracting PO (ME21N)
Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)
Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)
Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and auto consumption of components with 543 movement}
Reconciliation of Subcontracting Challan (J1IFQ)
Completion of Subcontracting Challan (J1IF13)
Generation of Annexure IV (J1IFR)
Note: - In this case, you have to maintain the Assessable Value for the Components to be supplied to Vendor in J1ID and also Excise Tax rates for the Chapter IDs linked with these components. So during J1IF01, system will take the Assessable Value as Excise base Value and calculates the Excise Duties by taking Excise Tax Rates.
Subcontracting under Full Payment of Duty
Creation of Subcontracting PO (ME21N)
Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)
Creation of Outgoing Excise Invoice w.r.t. Transfer Posting Document (J1IS) - Used to send the components to Subcontractor's. Here 57F4 Challan is not created.
Regards
Priyanka.P

Trading with Sub-Contracting Scenario

Dear All,
I have one requirement of Traded Material Scenario, where the material is delivered by Sub-Contractor directly to Customer.
The details are -
Sub-Contractor delivers material A to customer.
The material A has BOM maintained, where component B is maintained in the BOM.
My company purchases B from another Vendor & which is again directly supplied to Sub-Contractor. Sub-Contractor processes the component B to manufacture material A & delivers the same to my Customer.
The following issues need to be addressed -
1) Item category is L in Sub-Contracting, where as it is S in Third Party scenario. How can I have two item categories in same line item of Order.
2) Excise paid by Vendor (supplier of component B) can be availed by Sub-Contractor as set-off & I have to debit the same to Sub-Contractor, as payment to Vendor for component B is done by me.
3) Excise paid by Sub-Contractor is to be inventorized at my end (as it is cost to me) & can be availed for set-off by the customer.
Can anybody has any input for this?
Regards,
Prashant

I think this process was earlier called as 52 A operations.
This is what we had done 52A did not have requirement of jobwork challan)
1: Create the Subcontractor' Location as a "non excisable-Plant " in SAP.( The subcontract vendor was supposed to maintain his own excise records)
2.PO for raw material /Component will be raised from Subcon Plant .
3.The Excise in the PO will have to be configured as a Condition similar to VAT Deductible(so that during MIRO it is sent to another GL account for tracking and further FI-debit note to recover from jobworker )
4. The Production of the Main FG can be shown by Subcontracting PO .
5. There has to be another Virtual Plant ( A RG23D registerd depot normally) which will depict your companys local office near the Subcontractors Location , as the Final SALES Invoice should be from your companys Name.
6. Goods will first be sent by a STO to this Virtual Plant , here in This STO you can also add the Excise Duty condition types for Inventorization purpose.
7. Create Sales Invoice (and if RD23D then Depot invoice) from your Virtual Plant .( Excise invoice will be created by the subcontracting vendor , against which your customer can claim Modvat)
I have mentioned the Process above , for config settings of each process you can check many threads here in SDN.

Vendor Payment - Sub Contracting

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