Sale and receipt Sub contracting

dear sirs,
pl. give the best solution in the below case
we are selling X product to say Y company and the delivery is withing our company premises(delivery address is our plant only our company- for job work)
in the first instance we sell the same in the name of Y party and receive the same material with diff. code(non valuated) for JOB WORK purpose.
i...e sale by 601 and after that we go for 501 non valuated GR.
is there any best way other than this, may b linking directly in SO!
instead of raising the GR separate?
we are doing the same thing as we need to take the Excise duty benifit in the same month.

As material is directly going to subcontractor from vendor, you don't need to create 57F4 challan for the same.
Challan needs to be generated if material is going from your premises.
If you want to provide the challan to your subcontractor, then you have to take the raw material into your premises first(MIGO), then MB1b-541 & then J1IF01.
Regards,
Piyush

Similar Messages

Swap between two different item categories in sales orders for sub-contracting

Dear gurus,
my requirement is to have the ability to swap between two different item categories for sales orders for sub-contracting.
This should be controlled by a combination of the material and a value maintained the Usage field in the Customer Material Info Record (for example by entering a ‘V’). A combination of Sales Doc Type, Item Cat Group and Usage should result in the creation of a purchase requisition.
In the event that a process order is required instead of a purchase requisition (i.e. the product is to be manufactured in-house instead of sub-contracted) the user must have the ability to change the Item Category within the sales order to produce a process order.
The user would just change the item category within the sales order, and the system would automatically remove the purchase requisition assigned to the SO, and create a process order and assign it to the SO.
Can you suggest any possible solution?
Thank you in advance.

Hi Majlo,
In my system, I checked. First created sales order with third party line item and then changed item category to normal item category.
Till Purchase order not created, I can change Item category of my sales order line item.
In this case SAP inform by log and once save delete purchase requisition of that line item .
For this you need to assign another item category as an manual item category in SPRO Item category assignment.
After this user can manually change item category to other one manually, if PO do not exist.
Please let me know if your query is different.
Regards

Out and Out Sub Contracting scenario

the process is :
1) Create Standard PO for component material on Vendor A (in delivery address tab, entering Sub con vendor with tick)
2) Now doing GRN for the above PO, the material is received directly at vendor location.
3) Sub Con PO is created on the subcon vendor.
4) As the component material is already with sub contractor no transfer posting (541) is done .
5) Now we have to create sub contracting challan (J1IF01) which will go to subcontractor from the plant.
6) Now the issue is with what reference shall i create subcon challan in J1IF01.
System allows J1IF01 with ref to transfer posting doc only.
Please suggest.

As material is directly going to subcontractor from vendor, you don't need to create 57F4 challan for the same.
Challan needs to be generated if material is going from your premises.
If you want to provide the challan to your subcontractor, then you have to take the raw material into your premises first(MIGO), then MB1b-541 & then J1IF01.
Regards,
Piyush

Delivery order for sub-contract processing scenario

Hi experts,
We got a requirement from our users to sub-contract certain production processing steps (or called external processing per SAP). Same part number would be used for the goods issue and goods receipt. But would like to make the delivery for the goods issuing as the delivery for normal sales parts. (Purchase order -> Delivery order -> Shipping and Packing)
Sub-contract processing will generate purchase order like service order which only contains service fee item, and we found that no outbound delivery order can be created with reference to purchase order in standard SAP.
Have you experienced such scenario before and could share to us please?
Regards

When moving subcontracting part to your subcontractor you can do it via:
1. simple goods movement
2. delivery
1 Simple goods movement (transfer posting)
- /w reference to PO (MB1B + 541)
- w/o reference to PO (MB1B / MIGO + 541)
2 Delivery
Using the before mentioned ME2O you can create the delivery w/o reference to PO
Please note that even if you use the MB1B541PO reference solution, system just suggests the component qunantity on the PO w/o making a real link between PO and goods movement. You can example do the MB1B541PO reference "as many times" as you want...
So, as per my best knowledge there's no solution for your requirement.
I guess one reason of system's behaviour might be that provision of compoenents doesn't depend on one single PO - if you want to reduce your shipment cost you will send out lots of components at once, more than the amount needed for one call-off.
Regards,
Csaba

Sub contracting- A/C postings

hi all,
posting GR(101) for subcontracting item against subcontracting PO resulted posting to a 'change in stock' account (Tr.Event.Key BSV) with a value ( SC item value+SC service charge).
If i want this value to be posted to consumption account what should i do.
Is BSV is Tr.Event.Key for offesetting entry??
What 'change in stock' account generally stands for?

Hello Satish
The change in stock account (BSV) should not go to consumption account.
I will give an example in which we are providing components for Rs.450 and the sub contracting charges is Rs.500
At the tome of goods receipt:
GR/IR clearing account(WRX)             500 -
External service account(FRL)           500 +
Stock account: end product(BSX)           950 +
Change involving stocks(BSV)             950 -
Stock account: comp.(BSX)             450 -
Consumption account(GBB)            450 +
And for your question, the consumption a/c will be a P/L account which will be reflected in the balance sheet. And so if you put the change in stock a/c also in the consumption a/c then in the balance sheet it will show high consumption value when the real consumption value is not that much.
Thats why this is configured like this in standard SAP system.
Hope this helps
Regards
Gregory Mathews

Sub-contracting through Project system.

Hi
Can some one please help me in understanding how Project system (PS) is supporting sub-contracting scenarios.
I am looking for activity sub-contracting and also sub-contracting with Project stock materials.
I am aware of normal sub-contracting through production order and also sub-contracting through MM. I am specifically looking for sub-contracting in PS.
Thanks and warm regards,
Jagadeesh

Hi,
If requirements for subcontract items (or services) are generated automatically from PS just make sure that the right document category is used (subcontract) then any requisitions or planned orders etc. will have the right category.
There is no difference between PP, PS and PM effectively, they all use subcontracting in the same way it is just how the requirement is triggered that is slightly different.
If you need details on how to trigger the right type of requirement through PS then you may need to use one of teh financial forums that cover PS? (is there one?)
Steve B

Sub contract in sales

I need sub contract in sales.
Ex:
Customer sent material to plant they need some process in our plant for that I need scenario and configuration.
How we allow customer material into plant?
After finished work how to deliver products to customer and billing also.
Please help me any one

Hi Dharmananda rao
Sub Contracting Cycle :
(1) You have a material that can be procured externally, and you have maintained BOM with components. Any waste generated and received during subcontracting process can be maintained as component with negative quantity.
(2) You create a subcontracting PO (PO with Item Category L). You can also maintain Purchase Info Record for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components for SC PO. Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor"
(4) You receive finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products. There are three events, so three accounting entries are generated:
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)
5) You do the IV for SC Invoice, and the process is complete.
Process of Subcontract in MM :
Sub-contract business process:
You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .
Vendor shall process the item / use the item provided & supply the final item.
SAP process:
1.Create the finished goods material code.
2.Maintain the BOM for the material.
3.Create PO with item category as "L" .
4.Issue material to vendor with movement type 541
5.Receive the material against the PO with movement type 101.
6.MIRO to account for vendor's invoice for the service charge& material used by him.
Can anybody tell me how a process has to be given to subcontracting?
Suppose, I have 3 operations 1)weaving 2)dyeing 3)cutting & packing
if no 2 process (i.e Dyeing) has to be given to subcontracting, what process should i follow ?
The following process to be followed for subcontracting.
1. Item code(material master) to be created at the stage of before dyeing.
2. Item code(material master) to be created after Dyeing as subcontracted item.(F30)
3. Bill of material to becreated for the material(2) calling for material(1)
4. Inforecord and source list to be created for material(2) with the corresponding vendor
5. PO to be released for material (2)
6.Along with PO the material(1) to be issued to vendor
7.On receipt of material when GR is made the stock with vendor will get updated.
How to Create a Subcontract Order?
To create a subcontract order, proceed as follows:
Enter the material you want to order and the item category for subcontracting (L) in the order item.
Press ENTER to display the screen for component processing.
Enter the components that the vendor requires to manufacture the product.
Please note:
You do not need to enter the date required for the components. This date is proposed by the system when you press ENTER.
It is calculated as follows:
Delivery date of the item - Planned delivery time
If you do not want the quantity of the components to be changed if the order quantity of the end product is altered, set the indicator Fixed quantity (column F).
You can determine whether the components are available on the date required by selecting Edit -> Availability check.
If you entered a bill of material as the material in the subcontract order, the components are created automatically.
If you want to determine the components in the bill of material at a later date (for example, if the bill of material is subsequently changed), choose Item -> Component -> New BOM explosion. The existing components are deleted and redetermined in the bill of material.
Save the purchase order.
When you print the purchase order, the components are printed per order item
Subcontracting - Key Points
Special Procurement Process.
Item category: L
Order type: NB
In info record vendor should be maintained as subcontractor.
Vendor (Subcontractor) receives the components used to manufacture a finished product directly from your company or through third party.
Your company should place a purchase order for the finished product. In this manually you can enter the required individual components or it can be determined via the explosion of BOM (if exists).
Stock check at vendor level: ME2O
Company stock check: MMBE
GR for individual components through movement type: 501 or 561 (if with out PO or without reference).
GI to subcontracting vendor: through movement type 541.
GR from sub contracting vendor: through movement type: 101
Movement type 543 is displayed to cancel the material cost account.
If the subcontracting order has to be generated through materials planning,the special procurement key has to be set in MRP 2 screen.
- To create the Subcon Info Record : Tcode ME11 - Info Category - Click Subcontracting
- To create Material BOM : Tcode CS01
- With the Info and Material Setup, you can then create the Purchase Order in Tcode ME21N
Reward if useful to u

Goods receipt through Inbound delivery for Sub-Contracting Purchase order

Hi
I am trying to do goods receipt for the inbound delivery /shipping notification created for a sub -contracting Purchase order. The Finished product and the component part are batch managed, When I try to perform PGR in VL32N , I am getting a blank screen as error message and Goods receipt is not getting triggered . I checked for OSS note and found 645119 close to my issue but not an exact match . We are in ECC 6.0 with EHP 4. Can some one clarify whether it is possible to post GR through inbound delivery for a Subcon Purchase order .
Thanks in advance for your immediate response.
with regards,
Joseph Anand B

Hi, The issue may be due to this - the component is batch managed but the batch data is blank in the component list of the Purchase Order Item. Or a batch is maintained in the PO item component list but the stock for the same batch is not available with Vendor, i.e. stock with some other batch may be available.
In a receipt for Sub-cont PO, 101 happens for FG and 543 happens for component. But there is no option to provide the component details in a delivery. So in standard system, when 101 happens via a delivery, 543 will be posted in the background. So any error in posting 543 will result in a blank screen without any error message.
You can fix this by maintaining correct batch in the PO component list.
But there is another issue - you cannot do 'cancel posting' and 'return delivery' for this receipt. Only you can reverse the inbound delivery and you should know that the recevied stock shouldn't have been processed to do reversal of inbound delivery.

Sub contracting and production time

Hello Experts,
My problem is related to sub contracting and how to reflect the time the subcontractor needs to produce the goods.
My system works as follows.
I create a subcontacting for material A. This material has delivery time 5 days. I supply the subcontractor vendor with material B. This material has also delivery time 5 days.
So, when I set the delivery date to ie 02.02.09 for component A, I get the requirements date for component B to 10 days less than my requirements date.
This means that I need to have B in my stock 10 days before I get A into stock. I guess that this is caluclated using A and B's delivery time and in this case, the five days i meant to reflect the number of days from me to the vendor.
This does not reflect my needs.
I also need to be able to reflect the production time at the vendor. This is the number of days between he receive B and when he can ship A. As this works now, the vendor is given no time to manifacture A out of B.
Second, the time it takes to ship B will be very different denpendent on which vendor who will receive it.
Any ideas how this is done?
rgds
GAR

Hi,
Please define the Total replenishment lead time (in workdays) according to your requirement.
There is no point in maintaining the Total replenishment lead time field (in MRP 3 view of material master) for materials procured externally.
In external procurement, the system adds the processing time from purchasing (maintained in SPRO> Materials Management> Consumption Based Planning> Plant Parameters> Carryout overall maintanance of Plant Parameters-->Maintain --> External Procurement), the planned delivery time, and the goods receipt processing time ( both in the MRP 2 view of material master data or in Vendor master data) and uses this total as the replenishment lead time for an availability check with replenishment lead time.
Hope this will help.
Regards,
Narayana.

Sub contract cost against sales T.codes & path

Hi,
Please find out the T.code and path for subcontract cost against sales.Very urgent.
Regards
R.Manigandan

Hi,
I check it but did`t solve my problem,actually my problem is my client want to generate list of sub contract list against sales he wants any tcodes or path.

Consignment sale and contract difference

What is the basic difference between consignment sale and contract ?
Thank u gurus

Consignment Sales is a sale, in which initial ownership of the stock is with us, the stock being in the premises of the customer. The ownership is transfered on sale of material.
Contract may be quantity contract or Value contract, in which the stock remain in our owm premises, but it ia an agreement to delivery some'x' quantity of material or materials to the tune of decided valuue.
<b>Consignment Stock Processing:</b>
Consignment Stock Processing
Purpose
Consignment goods are goods which are stored at the customer location but which are owned by the company. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods that are not required.
Consignment Fill-Up: Consignment fill-up replenishes the stock at the customer site. Since the goods remain the property of the company, this process is not relevant for pricing and consequently not for invoicing either.
Create a sales order using order type KB.
Enter the required data on the customer, the consignment goods and the delivering plant.
Enter all other relevant data and save the order.
Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.
The underlying goods movement type is a stock transfer. This ensures that when goods issue is posted, consignment special stock is created for the customer concerned. If special stock of this kind already exists in the delivering plant for this customer, the goods are posted to this special stock.
Order type: KB (document category C: sales order)
Std. Delivery type: LF
Item category: KBN (not relevant for pricing and billing)
Schedule line category: E1 (relevant for deliveries, uses availability check, 631 (GI consignment: lending) to post the stock into a special consignment category in the delivering plants stock for that particular customer and material)
Copy control rules for the sales doc, item category, and schedule line category.
Use trans MB58 or MMBE to check the stock.
Consignment Issue: The Consignment issue enables the customer to withdraw consignment goods from the special stock that are to be used or sold.
Create a sales order using order type KE.
Enter the required data for the customer, the consignment goods and the plant to which the goods are to be returned.
Enter all other relevant data and save the order.
Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.
The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods issue also reduces your total stock.
Invoice the delivery which issues the consignment goods.
Order type: KE (document category C: sales order)
Std. Delivery type: LF
Invoice: F2
Item category: KEN (relevant for pricing and deliver related billing, special stock indicator W, should determine cost too)
Schedule line category: C1 (relevant for deliveries, uses availability check, 633 (GI issue: customer consignment)
Consignment returns: proceed as follows: Consignment returns enable your customer to return goods to the consignment stock that has already been issued from it.
Create a sales order using sales order type CR.
Enter the required data on the customer and the consignment goods.
Enter all other relevant data and save the order.
Create a returns delivery for the sales order (the system automatically chooses delivery type LR). The goods issue posting cancels the goods issue posting which was carried out when the consignment goods were issued. This posting records the return of the goods to the plant where goods receipt was carried out.
Create a credit memo for the consignment return you created in Step 1.
Order type: KR (document category H: returns)
Delivery type: LR
Credit for Returns Order type: RE (delivery or order related billing)
Item category: KRN (relevant for pricing and deliver related billing, special stock indicator W
Schedule line category: D0 (relevant for deliveries, no availability check, 634
Consignment Pick-Up: The company uses consignment pick-up to take back consignment goods that are faulty or excess materials that the customer does not need. This process is not relevant for billing since the goods remain the property of the company.
It may be beneficial to have a mandatory reference such as the consignment fill-up. In addition to it copy control rules can be used to further control it. In the copy control rules indicate the document flow. As the stock is coming back into the warehouse or plant, you can specify a returns shipping point to be automatically determined. No invoice is necessary, as the goods are not changing ownership.
Create a sales order using order type KA.
Enter the required data for the customer, the consignment goods and the plant to which the goods are to be returned.
Enter all other relevant data and save the order.
Create a returns delivery for the sales order (the system automatically chooses delivery type LR). The transaction is completed by the goods issue posting which initiates a transfer posting from the customer's special stock to your plant stock.
Order type: KA (document category C: sales order)
Delivery type: LR
No invoice
Item category: KAN
Schedule line category: F1 (relevant for deliveries, availability check against the stock on the customers consignment, 632 (Consignment pickup)
<b>Contracts</b>
Contracts represent special business relationships with customers based upon material, price, and qty. They guarantee a special price agreement with the customer and are usually called outline agreements in std SAP terminology.
There are four different types of contracts provided by SAP. They are:
1)     Quantity contracts
2)     Value contracts
3)     Service and maintenance contracts
4)     Master contracts
Regards,
Rajesh Banka

Can u explain full T-code and Sub contracting steps from 541,544,545,554

hi experts
can u please explain all the steps involved in sub-contracting
process with
ME2O and scrap material
cancellations of sub-contracting
thanks
ganesh

Hi,
Refer link;
[Subcontracting Process w/o Payment of Excise Duty|http://help.sap.com/bestpractices/BBLibrary/Documentation/J85_BPP_V2_EN_IN.doc]
Subcontracting Process
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 autoconsumption of components with 543 movement}
- Reconciliation of Subcontracting Challan (J1IFQ)
- Completion of Subcontracting Challan (J1IF13)
- Generation of Annexure IV (J1IFR)
Master Data
- MM01- Material Masters for Components and FG
- XK01 - Vendor Master (Subcontractor)
- CS01 - BOM for FG
- ME11 - Purchase Inforecord for Subcontracting
Configuration: -
- Go to SPRO > Logistics - General > Tax on Goods Movements > India > Account Determination > Specify Excise Accounts per Excise Transaction > Here maintain as following;
ETT Subtrn Typ DC ind Acct name
57FC            CR     PLABED
57FC            CR     RG23BED
57FC            CR     RG23ECS
57FC            DR     CLEAR
57FC 01         CR     PLABED
57FC 01         CR     RG23AT1
57FC 01         CR     RG23BED
57FC 01         CR     RG23ECS
57FC 01         DR     CLEAR
57NR            CR     CLEAR
57NR            CR     PLABED
57NR            CR     RG23BED
57NR            CR     RG23ECS
57NR            DR     REVERS
57NR 01         CR     CLEAR
57NR 01         CR     PLABED
57NR 01         CR     RG23BED
57NR 01         CR     RG23ECS
57NR 01         DR     REVERS
- And then go to SPRO > Logistics - General > Tax on Goods Movements > India > Account Determination > Specify G/L Accounts per Excise Transaction > Here do Account Determination for the above combination and Excise Group
Apart from above also do following configuration for Subcontracting;
- SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Subcontracting Attributes
Here maintain following;
Excise Group         XX
Excise TT            57FC
Subtransaction Type 01
Subtran Type Text   57FC CHALLAN
Subc. Period        180
Rate-subcontracting
Mvt Grp Issues      0001
Mvt Grp Receipt     0002
Filter Non exise
EI Items            10
No. range no.       01
***. Val. /Exc Inv
Subcon Output Type J1IF
- SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups
Here maintain following
MVT. Grp. MvT S
0001      101 O
0001      541 O
0002      542
0002      542 O
0002      543 O
- J1I9 - maintain No range for object "J_1I57FC" for series group

BAPI/FM for goods receipt for a Sub Contracting PO

Hi All,
Is there a BAPI/FM to perform goods receipt for a sub contracting PO? BAPI_GOODSMVT_CREATE can not perform goods receipt for sub contracting PO.
My purpose would be served if I can know how to find the component material of a subcontrcting PO.
Please help.
Thanks,
Rana

Thanks for your input
Well, I wanted to ask if the BAPI is capable of performing GR for SC PO. Instead of a question, that went as a statement :-). Your recommendation helped me to find answer to my question.
Thanks again.

How to create service items and sales order for service contracts.

Hi,
I have created item using Purchased Item template and one more item(service item) using service /warranty program template. Then I have used these items to create sales order with service item in it and closed that order , but Iam not getting this order in service contracts. Is this right way to create sales order for service items. I
item name:- personal_computer
copied from purchased order template. service is enabled and install base is checked and enable service coverage is enabled.
item name:- service_item
copied from service /warranty program template
service is selected to inactive,
service type: service
duration: 1 year
template: Gold
and saved the item.
Then I have used these two items in sales order for service contracts. But that sales order is not hitting in service contracts. Is there any error with item creation.
Thanks,
Bharat G.

Following SAP Notes to be referred for Service Tax:
1. 778976 u2013 Service Tax and Ecess on Service Tax
2. 1032265 - SEcess on Service Tax
Regards
AK

How to link Sales Order with Service Contract and then with Install Base?

Hi Friends,
1) I would like to know the integeration process from sales order to Service Contract and then with Install Base.
2) I couldn't see anything enabled in Service Tab in Order Lines, its grayed out. Is there any set up/profile option to get it enabled?
3) How can we create AR invoice from Service Contract?
Please let me know if anyone has idea on this.
Thanks in Adavance,
Vara

Dear Sid,
Thanks for your promt response.
Let me explain you what I did.
1) I have booked a Bill Only sales order which has one order line, mentioned it as Service Item and provided the same details in Service Tab in Order lines. Now Line status is "Fulfilled"
2) Then Submitted Workflow Back Ground Process for OM Order Lines and it has created an AR Invoice and closed the line
3) And then submitted "Service Contracts Order Capture Integration Program" from SErvice Contracts Responsibility and it completed normal.
4) Now I went in to Launch Contracts Window and queried with the sales order but couldn't see any contract created
5) Then I went in to Reprocess Order Window and found this order shows an error message as "Referenced Product not present in the Installed Base", then I tried to reprocessed it, but the same error message again.
Here I have few doubts:
1) Are the AR invoice and Service Contract Billing Invoices same?
2) In above scenario AR Invoice has been created, I would like to do the billing from SErvice Contracts and need to create an Invoice in AR? how can I do that?
because as you explained in one of my questions earlier, A Single Invoice can be created for the whole duration of the contract. I want to do that and trying for the same.
3) Regarding the above error message, how can I resolve it and create the service contract against that Order?
Thank you so much for your helpful answers.
Regards,
Vara

Sale and receipt Sub contracting

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