Internal Subcontracting (Toll Processing)

Dear Logistic/MM expert,
We have requirement that our sister company is doing subcontracting to us (toll manufacturing).
Basically our sister company is supplying us the main raw material and then
we add our company own material plus some overhead.
The problem is we need our company to recognize the COGS during we produce
in the same period.
Example: in April we produce 1000 CTN, we dispatch the goods to customer (sister company) 800,
we want to recognize the COGS on April based on 1000 CTN (not based on 800). The remaining
200 we just need to record quantity.
My question is:
- What is SAP best practice of internal subcont (toll manufacturing)?
- Any idea how to recognize COGS in produced quantity?
something cross in our mind is we sell all right after we produced and receive remaining qty in virtual Plant non valuated.
That means once 1000 CTN is produced we sell it immediately (to recognize 1000 CTN as COGS),
then remaining stock of 200 CTN (physical dispatched 800 CTN) we need to GR again in different plant (which is non valuated)
or
Is there any idea to simplify this process? :roll:
Moreover we implement material ledger
Thanks in advance,
Subur

Similar Messages

Service Internal Subcontracting (Toll Processing)

Dear SAP Expert,
We have requirement that our sister company is doing subcontracting to us (toll manufacturing).
Basically our sister company is supplying us the main raw material and then
we add our company own material plus some overhead.
The problem is we need our company to recognize the COGS during we produce
in the same period.
Example: in April we produce 1000 CTN, we dispatch the goods to customer (sister company) 800,
we want to recognize the COGS on April based on 1000 CTN (not based on 800). The remaining
200 we just need to record quantity.
My question is:
- What is SAP best practice of internal subcont (toll manufacturing)?
- Any idea how to recognize COGS in produced quantity?
something cross in our mind is we sell all right after we produced and receive remaining qty in virtual Plant non valuated.
That means once 1000 CTN is produced we sell it immediately (to recognize 1000 CTN as COGS),
then remaining stock of 200 CTN (physical dispatched 800 CTN) we need to GR again in different plant (which is non valuated)
or
Is there any idea to simplify this process? :roll:
Moreover we implement material ledger
Thanks in advance,
Subur

Dear SAP Expert,
We have requirement that our sister company is doing subcontracting to us (toll manufacturing).
Basically our sister company is supplying us the main raw material and then
we add our company own material plus some overhead.
The problem is we need our company to recognize the COGS during we produce
in the same period.
Example: in April we produce 1000 CTN, we dispatch the goods to customer (sister company) 800,
we want to recognize the COGS on April based on 1000 CTN (not based on 800). The remaining
200 we just need to record quantity.
My question is:
- What is SAP best practice of internal subcont (toll manufacturing)?
- Any idea how to recognize COGS in produced quantity?
something cross in our mind is we sell all right after we produced and receive remaining qty in virtual Plant non valuated.
That means once 1000 CTN is produced we sell it immediately (to recognize 1000 CTN as COGS),
then remaining stock of 200 CTN (physical dispatched 800 CTN) we need to GR again in different plant (which is non valuated)
or
Is there any idea to simplify this process? :roll:
Moreover we implement material ledger
Thanks in advance,
Subur

Internal Subcontracting (Toll Manufacturing)

Dear SAP Expert,
We have requirement that our sister company is doing subcontracting to us (toll manufacturing).
Basically our sister company is supplying us the main raw material and then
we add our company own material plus some overhead.
The problem is we need our company to recognize the COGS during we produce
in the same period.
Example: in April we produce 1000 CTN, we dispatch the goods to customer (sister company) 800,
we want to recognize the COGS on April based on 1000 CTN (not based on 800). The remaining
200 we just need to record quantity.
My question is:
- What is SAP best practice of internal subcont (toll manufacturing)?
- Any idea how to recognize COGS in produced quantity?
something cross in our mind is we sell all right after we produced and receive remaining qty in virtual Plant non valuated.
That means once 1000 CTN is produced we sell it immediately (to recognize 1000 CTN as COGS),
then remaining stock of 200 CTN (physical dispatched 800 CTN) we need to GR again in different plant (which is non valuated)
or
Is there any idea to simplify this process?
Moreover we implement material ledger
Thanks in advance,
Subur

Hi Subur
Dont worry.. Its quite a common scenario and I have myself implemented it in the past...
The main challenge in this case is that for your Company its a Non valuated stuff.. however, for the Sister Company, its a valuated stuff.... With right kind of settings, you can achieve it....
The way I have implemented is as below
1. Use MTO scenario where Sales Order is the CO object...
2. IMG Settings
a. Create a requirement class in IMG > CO > Prod Cost Contr > Cost Obj Contr > Product cost by Sales order > Control of Sales-Order-Related Production/Product Cost by Sales Order > Check Req Class
Assign Account Assignment Catg = E; Valuation Field = Blank; And a Settlement Profile
b. Assign this requirement class to your requirement type and hand it over to your SD guy... The SD guy needs to assign this Req Type to his item category and always determine this Item category in the Inter Company Sub contracting Sales order...
Its advisable you create a separate sales order type for it
3. Process
a. Create a Sales order in Company A (Company B is the Sister Concern)
It may have 2 materials i.e. One material will be the FG and another will be service material for Sub contracting charges
b. Receive the raw material supplied by Company B against the sales order... Mvt Type 501 E.... (This would receive the stock in your books as Non valuated i.e. @ Zero value)
c. Create a Production order for the FG associated with the Sales order.. (CO08)
d. Issue the goods to the prod order / Confirm the operations
e. Do the GR from prod order... The GR will be Non valuated in Company A.... Only Qty will be updated in the stock.. No Value
f. At period end, settle the Prod order upon sales order.... With this, the total cost of 1000 will be settled to Sales order
g. Do the billing, which will also post to the Sales order....
h. Settle the sales order from VA88... This will settle the total cost of 1000 CNT to COPA....
4. Ensure that the Item Category / Req Class you use in this process for Company A, should not be used for Company B.. Else, it would also be treated as Non valuated GR in Company B as well
br, Ajay M

Subcontracting return process

Hi,
Any one can tell me Subcontracting Return Process.
a) I done Return Delivery against the Subcontracting PO
b) in J1IF01 I plan to create a Challan, its showing err..like " Document already exists for material document XXXXX"
Please guide me.
Rgs,
Priya.

HI
Follow the below steps:
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.
Regards
Prasanna

Weblogic 8.1 SP2 + Struts + Internal Servlet Session Process Error Found!

Hi,
          I have developed a struts 1.1 based webapplication which runs fine on
          weblogic 7 (for one year in production), tomcat 4.1,5 and others but
          refuses to function in weblogic 8.1 sp2!
          This is the stacktrace I get when I try to call an action via the browser:
          java.lang.IllegalStateException: Internal Servlet Session Process Error
          Found!
               at
               weblogic.servlet.internal.session.SessionData.checkProcess(SessionData.java:1148)
               at
               weblogic.servlet.internal.session.SessionData.setAttribute(SessionData.java:501)
               at
               org.apache.struts.action.RequestProcessor.processLocale(RequestProcessor.java:638)
               at
               org.apache.struts.action.RequestProcessor.process(RequestProcessor.java:230)
               at
               org.apache.struts.action.ActionServlet.process(ActionServlet.java:1420)
               at org.apache.struts.action.ActionServlet.doGet(ActionServlet.java:502)
               at javax.servlet.http.HttpServlet.service(HttpServlet.java:740) at
               javax.servlet.http.HttpServlet.service(HttpServlet.java:853) at
               weblogic.servlet.internal.ServletStubImpl$ServletInvocationAction.run(ServletStubImpl.java:971)
               at
               weblogic.servlet.internal.ServletStubImpl.invokeServlet(ServletStubImpl.java:402)
               at
               weblogic.servlet.internal.ServletStubImpl.invokeServlet(ServletStubImpl.java:305)
               at
               weblogic.servlet.internal.WebAppServletContext$ServletInvocationAction.run(WebAppServletContext.java:6350)
               at
               weblogic.security.acl.internal.AuthenticatedSubject.doAs(AuthenticatedSubject.java:317)
               at
               weblogic.security.service.SecurityManager.runAs(SecurityManager.java:118)
               at
               weblogic.servlet.internal.WebAppServletContext.invokeServlet(WebAppServletContext.java:3635)
               at
               weblogic.servlet.internal.ServletRequestImpl.execute(ServletRequestImpl.java:2585)
               at weblogic.kernel.ExecuteThread.execute(ExecuteThread.java:197) at
               weblogic.kernel.ExecuteThread.run(ExecuteThread.java:170)
          Just out of curiosity I deployed the struts-examples webapplication from
          the apache jakarta struts distribution and it also fails to run with the
          same error!
          Can anybody help me out with this one? Does anybody experience the same
          thing?
          regards,
          oliver
          p.s. I will also post this message on the struts user list.


Hi,
          I have developed a struts 1.1 based webapplication which runs fine on
          weblogic 7 (for one year in production), tomcat 4.1,5 and others but
          refuses to function in weblogic 8.1 sp2!
          This is the stacktrace I get when I try to call an action via the browser:
          java.lang.IllegalStateException: Internal Servlet Session Process Error
          Found!
               at
               weblogic.servlet.internal.session.SessionData.checkProcess(SessionData.java:1148)
               at
               weblogic.servlet.internal.session.SessionData.setAttribute(SessionData.java:501)
               at
               org.apache.struts.action.RequestProcessor.processLocale(RequestProcessor.java:638)
               at
               org.apache.struts.action.RequestProcessor.process(RequestProcessor.java:230)
               at
               org.apache.struts.action.ActionServlet.process(ActionServlet.java:1420)
               at org.apache.struts.action.ActionServlet.doGet(ActionServlet.java:502)
               at javax.servlet.http.HttpServlet.service(HttpServlet.java:740) at
               javax.servlet.http.HttpServlet.service(HttpServlet.java:853) at
               weblogic.servlet.internal.ServletStubImpl$ServletInvocationAction.run(ServletStubImpl.java:971)
               at
               weblogic.servlet.internal.ServletStubImpl.invokeServlet(ServletStubImpl.java:402)
               at
               weblogic.servlet.internal.ServletStubImpl.invokeServlet(ServletStubImpl.java:305)
               at
               weblogic.servlet.internal.WebAppServletContext$ServletInvocationAction.run(WebAppServletContext.java:6350)
               at
               weblogic.security.acl.internal.AuthenticatedSubject.doAs(AuthenticatedSubject.java:317)
               at
               weblogic.security.service.SecurityManager.runAs(SecurityManager.java:118)
               at
               weblogic.servlet.internal.WebAppServletContext.invokeServlet(WebAppServletContext.java:3635)
               at
               weblogic.servlet.internal.ServletRequestImpl.execute(ServletRequestImpl.java:2585)
               at weblogic.kernel.ExecuteThread.execute(ExecuteThread.java:197) at
               weblogic.kernel.ExecuteThread.run(ExecuteThread.java:170)
          Just out of curiosity I deployed the struts-examples webapplication from
          the apache jakarta struts distribution and it also fails to run with the
          same error!
          Can anybody help me out with this one? Does anybody experience the same
          thing?
          regards,
          oliver
          p.s. I will also post this message on the struts user list.

IllegalStateException: Internal Servlet Session Process Error Found!

          I keep getting the annoying error as listed, and the server also keeps reporting
          that I can only connect from 0 unique ip addresses. Has anybody else seen these
          type of frustrations on 8.1 sp2, or can explain them.
          With as much detail omitted for simplicity;
          Frustration 1.
          I have a 8sp2 server running all ok, occasionally after a redeploy of an ear file
          I attempt to load a jsp file, and the error below is thrown.
          The JSP has a bean which is session based, and as from following the stack trace
          it is around some weblogic code which tests if my license allows access to the
          http session (on a developer license). I then have to start another server instance
          and do a deployment of a v.simple war, and access this, then deploy the same war
          to the broken server and access that, then the initial jsp works fine. no code
          changes just environment stops, starts and redeploys!
          Frustration 2
          Server runs ok, tray and connect from two machines (I have an ldap server that
          wants to 'broadcast' messages to my server), error of too many connections.
          The ip connection issues can in most cases be removed with a server restart.
          EXCEPTION TRACE
          java.lang.IllegalStateException: Internal Servlet Session Process Error Found!
          With the following stack trace:
          java.lang.IllegalStateException: Internal Servlet Session Process Error Found!
               at weblogic.servlet.internal.session.SessionData.checkProcess(SessionData.java:1148)
               at weblogic.servlet.internal.session.SessionData.setAttribute(SessionData.java:501)
               at jsp_servlet._security.__changeprofile._jspService(__changeprofile.java:135)
               at weblogic.servlet.jsp.JspBase.service(JspBase.java:33)
               at weblogic.servlet.internal.ServletStubImpl$ServletInvocationAction.run(ServletStubImpl.java:971)
               at weblogic.servlet.internal.ServletStubImpl.invokeServlet(ServletStubImpl.java:402)
               at weblogic.servlet.internal.ServletStubImpl.invokeServlet(ServletStubImpl.java:446)
               at weblogic.servlet.internal.ServletStubImpl.invokeServlet(ServletStubImpl.java:305)
               at weblogic.servlet.internal.WebAppServletContext$ServletInvocationAction.run(WebAppServletContext.java:6350)
               at weblogic.security.acl.internal.AuthenticatedSubject.doAs(AuthenticatedSubject.java:317)
               at weblogic.security.service.SecurityManager.runAs(SecurityManager.java:118)
               at weblogic.servlet.internal.WebAppServletContext.invokeServlet(WebAppServletContext.java:3635)
               at weblogic.servlet.internal.ServletRequestImpl.execute(ServletRequestImpl.java:2585)
               at weblogic.kernel.ExecuteThread.execute(ExecuteThread.java:197)
               at weblogic.kernel.ExecuteThread.run(ExecuteThread.java:170)


          I have the same problem. Could any one help us?
          "David" <[email protected]> wrote:
          >
          >I keep getting the annoying error as listed, and the server also keeps
          >reporting
          >that I can only connect from 0 unique ip addresses. Has anybody else
          >seen these
          >type of frustrations on 8.1 sp2, or can explain them.
          >
          >With as much detail omitted for simplicity;
          >
          >Frustration 1.
          >I have a 8sp2 server running all ok, occasionally after a redeploy of
          >an ear file
          >I attempt to load a jsp file, and the error below is thrown.
          >
          >The JSP has a bean which is session based, and as from following the
          >stack trace
          >it is around some weblogic code which tests if my license allows access
          >to the
          >http session (on a developer license). I then have to start another
          >server instance
          >and do a deployment of a v.simple war, and access this, then deploy the
          >same war
          >to the broken server and access that, then the initial jsp works fine.
          > no code
          >changes just environment stops, starts and redeploys!
          >
          >Frustration 2
          >Server runs ok, tray and connect from two machines (I have an ldap server
          >that
          >wants to 'broadcast' messages to my server), error of too many connections.
          >The ip connection issues can in most cases be removed with a server restart.
          >
          >
          >EXCEPTION TRACE
          >
          >java.lang.IllegalStateException: Internal Servlet Session Process Error
          >Found!
          >
          >With the following stack trace:
          >
          >java.lang.IllegalStateException: Internal Servlet Session Process Error
          >Found!
          >     at weblogic.servlet.internal.session.SessionData.checkProcess(SessionData.java:1148)
          >     at weblogic.servlet.internal.session.SessionData.setAttribute(SessionData.java:501)
          >     at jsp_servlet._security.__changeprofile._jspService(__changeprofile.java:135)
          >     at weblogic.servlet.jsp.JspBase.service(JspBase.java:33)
          >     at weblogic.servlet.internal.ServletStubImpl$ServletInvocationAction.run(ServletStubImpl.java:971)
          >     at weblogic.servlet.internal.ServletStubImpl.invokeServlet(ServletStubImpl.java:402)
          >     at weblogic.servlet.internal.ServletStubImpl.invokeServlet(ServletStubImpl.java:446)
          >     at weblogic.servlet.internal.ServletStubImpl.invokeServlet(ServletStubImpl.java:305)
          >     at weblogic.servlet.internal.WebAppServletContext$ServletInvocationAction.run(WebAppServletContext.java:6350)
          >     at weblogic.security.acl.internal.AuthenticatedSubject.doAs(AuthenticatedSubject.java:317)
          >     at weblogic.security.service.SecurityManager.runAs(SecurityManager.java:118)
          >     at weblogic.servlet.internal.WebAppServletContext.invokeServlet(WebAppServletContext.java:3635)
          >     at weblogic.servlet.internal.ServletRequestImpl.execute(ServletRequestImpl.java:2585)
          >     at weblogic.kernel.ExecuteThread.execute(ExecuteThread.java:197)
          >     at weblogic.kernel.ExecuteThread.run(ExecuteThread.java:170)
          >
          >

Toll Processing Document

Dear Forum,
I need ur expert comments on TOLL Processing..The business procedure is as follows.
1. Customer will supply RM to XYZ company for slitting/painting etc... (coils can be on 57F4 or on duty paid basis).
2. Coils will be received at XYZ company as nonvaluated stock.
3. Those will be processed in manufacturing lines to convert into FG.
4. FG will be sent back to customer with proper documents.
5. Billing will be for service charges + paint used in case of painting.
Now i want to know how to map this scenario into SAP..
If someone has proper business document on the same then kindly share it.
Regards
Nainesh
SAP ECC 6.0

Hi,
Pls proceed as follows:
1.Creat an order type -ZTOL
2.Creat an item category-ZTOL
3.Assign the schdule line "CP" (MRP)
Once order will be created for customer the system will creat on planned order against the sales order.This planned order will be converted in production order using tcode COR7 (and MD04).
The production team shall produce FG(Nonvaluated) ,the raw material received and any other material of own stock i.e. consumed from buyer would be part of BOM for FG.
Once FG will be produced the same will be billed to customer and pricing will be only for charges etc if any.
Hope it would clarify the proces mapping.
Reagrds
Sanjay

Subcontracting purchase process

Hi,
What is the standard / best practice process for subcontracing purchase process? Business requirement is as follows:
1. Our company supplies raw materials.
2. Toller produces HALB which is sent back to us.
3. Packaging is carried out by us.
I created new subcontracing PR and PO document types. Flow is as follows:
1. PR for subcontracing created.
2. PO created against PR.
3. Batch created and assigned to PO.
4. ROH materials issued to subcontracting vendor via ME2O, mvt. 541.
5. GR / IR carried out.
The problem is that stock issued to subcontractor is not consumed after GR. Is this the correct process to follow? Am I missing something? Perhaps someone could suggest a better solution. What is the best practice?
Help is appreciated, thanks.

Hi,
U need to create BOM first , need to create BOM for header material ie HALB material in ur case and component material will be Raw Material.
Then create PR with item category L for the header material for which BOM is created.
Then do PO using that PR for SC vendor
Then first do goods issue of component material to SC vendor using MB1B , the component material will get issued using mov type 541. The goods issue done using SC vendor PO
U can chk stk supplied to SC vendor in MMBE after u issue components to SC vendor
and when u do GR against SC vendor PO, the header material goods reciepted using 101 mov type and component material will get consumed in the background using 543 mov type
Again u can verify stk for SC vendor for the component material in MMBE , they will get reduced.

Getting Error While Triggered the Internal Service Request Process Accelerator

Hi
I installed Oracle Process Accelerators(Internal Service Request and Employee On Boarding) PS6 in windows7.Installation was successful and I checked the installpa.log file there its showing "Build Successful" and then we assign the roles in BPM workspace and also put the security relams in in enterprise manager as per installation Document provided by the Oracle after that everything was fine to test the Internal Service Request(ISR) I triggered few instances but they terminated abruptly and giving these Errors in EnterpriseManager(EM)
while triggered ISR Error message that was shown in EM is
Non Recoverable Business Fault :
<bpelFault><faultType>1</faultType><operationErroredFault xmlns="http://xmlns.oracle.com/bpel/workflow/taskService"><part name="payload"><operationErroredFault xmlns="http://xmlns.oracle.com/bpel/workflow/taskService"><faultInfo>ORABPEL-30082 WorkflowServiceEngine request to another component failed. Request operation CallFunctionStateless from default/InternalServiceRequest!1.0/ManagerApproveRequest to ManagerApproveRequestRules_ManagementChainRuleSet failed with Business Fault: null. Check the underlying fault. Check target SOA component for cause. </faultInfo></operationErroredFault></part></operationErroredFault></bpelFault>
Non Recoverable Business Fault :
Attempted to access property 'id' in class 'oracle.bpel.services.identity.hierarchy.HierarchyPrincipal' with a null object reference. at line 292 column 34 in /Ruleset(ManagerApproveRequestRulesBase)/Function(CreateSupervisoryList)/Action[11]
if anybody who did this ever and facing the same issue can you please let me know as early as possible
Thanks and Regards
Rajesh.

Hi Phani,
Are you able to reproduce issue as below:
1. Login to Application as sysadmin.
2. Navigate to Intergrated SOA Gateway > Integration Repository.
3. Click on search on right hand side of the page.
4. In the Internal Name type "FND_USER_PKG" and click Go.
5. Click on the User link.
6. Under the "Web Service - SOA Provider", click in the "View WSDL". Copy the complete URL "http://test:8003/webservices/SOAProvider/plsql/fnd_user_pkg/?wsdl"
7. Open the soapUI.
8. Click File > new soapUI Project.
9. Test the web service.
If yes,
I think you might be need to execute a patch:
solution:
To implement the solution, please execute the following steps:
1. Download and review the readme and pre-requisites for iAS Patch 18855074.
Note: Above Merge Label Request (MLR) is build for EBS 12.1.3 having OC4J 10.1.3.5.
2. Enable the profile option "EBS Adapter for BPEL, Function Security Enabled".
a. Login as SYSADMIN user and Navigate to System >Profile and Search for "EBS Adapter for BPEL, Function Security Enabled" (Internal name :EBS_ADAPTER_FUNCTION_SEC_ENABLED)
b. Set the Value to 'Y' at SITE level . This means function security feature is enabled and all API calls for PL/SQL APIs, Oracle e-Commerce Gateway, and concurrent programs will be checked for user security before they are invoked.
3. Retest the issue by Generating and Deploying the required package.
4. Migrate the solution as appropriate to other environments.
Thanks
Ranjan

Subcontracting Assembly Process

Dear gurus,
Just want to get guidance on the process flow of Subcontracting/Outsourcing Assembly..
Our org will still plan the requirements for the materials, inform the OEM (original equipment manufacturer), and supplying the components..
Thank you.

Dear,
Within in-house production if some capacity bottleneck exists in any operations then you can assign this job to some vendors to carryout this job in his premises and supply us the semi-finished part. This can be done via control key example PP02 (external processing control key and activate the subcontracting Check box in routing).
Option1:
1) In Control key PP02 enable external processing and in the routing in the operation detail enable external processing under radio button sub contract.
2) In Order type dependent parameter T code OPL8 enable reservation / PR creation - 3 (immediate reservation / PR creation) during release / confirmation.
3) Create Info record T code ME2O only for vendor no material combination. (You are not going to issue material for the vendor through SAP) system will not allow through ME2O since it is operation subcontract.
4) Run MRP it will not create PR directly since the it is enable in OPL8 only after release.
5) Do the In-house operation then confirm the in -house operation in CO11n. Once the previous operation is confirmed PR is generated automatically.
6) Then Convert PR to P.O. In purchase order only operation description will appear. since no component is assigned. And the order type will be F.
7) Then make separate DC (Gate pass). Consult your MM guy for this.
8) If any component is assigned to the operation. Do stock transfer to Vendor storage location till such time it comes to factory again.
9) While return from vendor do MIGO against the P.O and it will come settle in prod order.
10) Payment to the vendor is through service record entry concept. Consult MM gut for this.
Option 2:
1) You have to create separate material master for that operation. Treating that it will be a different material
2) Create Vendor master with Material and Vendor combination
3) Create BOM with header material and this material as item for the header.
4) Create Routing for the header material with only one operation with control key PP02.
5) Assign the item material to this operation.
6) Run MRP this will create PR automatically. Then convert PR to PO
7) Send material to the vendor through ME2O
8) Do the GR MIGO the item will come have header material and it will automatically update in unrestricted stock.
9) Payment to the vendor will be with different as service entry concept consult MM guy for this.
Hope clear to you.
Regards,
R.Brahmankar

SubContracting business process

Hi All,
I have a requirement where SubContract materials to India .Same material master number for in-house produced and subcontracted materials.When finished goods are received from sub-con supplier, these have to be tracked separately for cost estimate for external produced materials.Materials involved in the sub contracting process are kept out of regular excise records.
MRP is not there.

Hi,
the material which your going to dop the inhouse prodcution and subcontracting
1 create the BOM of the material for SF and FG material combination in CS01
2.Define the production routing for inhouse and external operations
3. in the external operation which is producing in subcontracting define as external , create the vendor subcontracting inforecord only with description and assingn same into the external operation of the production routine
4. for this material create the prodcution order for inhouse operation system will consume inhouse stock and for external operation system will generate the subcontracting PR,
5 for the subcotracting PR define the components as SF material do the purchase order, normal subcontracting process recive the material
6. after completing the all the operations confirm the production order
by doing this excise for external subcontracting you can avoide
Regards,
Pramod

Subcontracting reversal process

Hi,
I have one problem in subcontract process, we have send the material to subcontract vednor but with 180 days we have received partial qty. some qty. is still with vendor more than 180 days, now after 180 adys the remaniaing qty. vendor has given back, now how to reverse the excise duty what is the process for reversing the excise duty, secong is that in J1IF12 when we display the challan, system display the Quantity in excise invoice, GR qty. excise base amount, reverse qty. but system not display the BED, SED, AED amounts in J1IF12 that we can see in J1IFR what setting we ahve to do so that we can see the tax amount in J1IF12 or while creating the challan.
regards,
zafar

Hi Zafar,
.From the SAP Easy Access screen, choose Logistics u2192 Procurement u2192 Subcontracting u2192 Subcontracting Challan u2192 Complete/Reverse/Recredit.
2. Enter the challan number and year.
3. Choose .
4. Select Complete challan.
5. Save the challan.
u2022 If you do expect the subcontractor to return at least some of the materials, you can leave it as it is for the time being. Then, when the materials arrive, you can recredit the excise duty to the account .
Recredit
If a subcontractor returns materials after the return date, you can recredit the excise duty credit that you have reversed.
Recrediting the CENVAT Account
1. From the SAP Easy Access screen, choose Logistics u2192 Procurement u2192 Subcontracting u2192
Subcontracting Challan u2192 Complete/Reverse/Recredit.
2. Enter the challan number and year.
3. Choose.
4. Select either of the following options:
u2212 Take recredit for receipts
This leaves the challan open for further goods receipts.
u2212 Take recredits if any and completes challan
This completes the challan and writes off finally any CENVAT credit that you might have been able to claim.
5. Save the challan.
You can also refer the link further
http://help.sap.com/saphelp_erp60_sp/helpdata/en/b3/cfdf3ae710c60ae10000000a114084/frameset.htm
Cheers
Kris

Subcontracting Returns process

Hi Experts,
Need you help on below scenario of subcontracting returns.
I procure a material (X) from Vendor (A) in units of Meter, example rod. Later I send it to Vendor (B) for subcontracting (cutting) and get material (Y) in units of PC.
At the time of quality check of material Y, I observe cracks in the raw material supplied by vendor A and plan to return to him.
What would be your suggestion here, because I've to add up all the pieces to arrive to meters and return to Vendor A.
Example: 200 pcs x 0.21 meter = Total return is 42 meters.
Should I use a returns PO with material X OR returns PO with material Y and alternate UOM OR any other process which you think is better.
Please note this material is excisable
Thanks in advance
Rajoo

Hi,
As per my understanding here, you have done GR for material Y from vendor B. And in background material X from vendor A is consumed in order to confirm receipt material Y. In this case you can not return material X as which is consumed. And if you try to return X there will not stock. Best possible option is that, you have to return the material Y from vendor A. This is you end/ finished product. And as per your input material is Excisable. Now from vendor B you can create one more return PO. to send material back to vendor A. But when you returned the PO & subsequently reversed the Excise using J1IS & Credit Memo to reverse the Amount if yet you have not posted the vendor invoice. in this case you can return the material.
Rg

PP - Subcontracting (External Processing)

Hi Techies,
I have a clarification with respect to PP External processing. For external processing in operation we need to create Purchase info records without reference to material and created with reference to material group only.
With my current scenario my client feels that though you create a purchase info records based on Material group there is no guarentee that all the material in the material groups for external processing would have the same Price. He want to convert this automatic purchase req which gets raised in the production order for external operation to purchase order and the price should be picked up by itself.
We tried to provide the following values in the external operation of the routing.
Sort Term
Material Group
Vendor
Planned Deliver. Time
Price Unit
Cost Element
Note: The subcontracting check box should not be selected and should be left unchecked.
Though we provided the price unit we could not find the price for this external processing updated in the purchase order.
How to carry on with this scenario.
Could you please guide us on this.
Thanking you in advance.
Regards,
Kris.S
Edited by: krishu100 on Nov 4, 2011 5:59 PM

Hi Bala,
Thanks for your reply.
Bala i tried with the Net Price Field
In my scenario i tried giving 15.00 GBP for Net Price and Price Unit as 1.
Its creating a purchase requistion for the external operation when i release the production order for its master material. In the purchase requistition i could see the price in the valuation tab as 15.00 GBP / 1 EA.
When i try to convert it to purchase order i m not able to find the price. Can you please guide me how to make this copy of the respective price from the purchase req to purchase order?
Regards,
Kris.S

Getting Internal Error in Process flow

Hi,
I'm getting an Internal Error : class not found error in the process flow.
What i'm trying to do is, i'm changing one of the input values of the mapping in the process flow. When i try to change the value of the parameter in the Activity View, i get this error:
"Internal Error: class not found. Please contact Oracle Support with the stack trace and details on how to reproduce it."
For the other mappings inside a process flow i'm able to change the values in the Activity View.
I also deleted the mapping and re imported the same.But still i'm getting the same error.
Can any one please help me in this regard?
Regards,
Abhinav.

This should resolve this issue
Fix
Oracle policy recommends taking away the execute privilege on UTL_SMTP from PUBLIC. This takes away the privileges from SYSMAN as well. SYSMAN needs execute on UTL_SMTP and UTL_TCP to send notifications. Workaround:
1. Log into the repository database as sys:
grant execute on sys.utl_smtp to sysman
grant execute on sys.utl_tcp to sysman
2. alter package sysman.emd_notification compile;

Internal Subcontracting (Toll Processing)

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