Service Sales & Job work

Dear Experts
My requirement is I am having manufacturing plant for my production related activities and i will do job work for third party.I want to have control on the inventory like what materials are coming in going out related to job work.Is there any Material Master has to be created and how to map this scenario in standard SAP system.
Thnx
MK
Edited by: MOHANA KRISHNAN on May 15, 2010 10:54 PM

>
MOHANA KRISHNAN wrote:
> Dear Experts
>
>
> My requirement is I am having manufacturing plant for my production related activities and i will do job work for third party.I want to have control on the inventory like what materials are coming in going out related to job work.Is there any Material Master has to be created and how to map this scenario in standard SAP system.
>
> Thnx
> MK
>
> Edited by: MOHANA KRISHNAN on May 15, 2010 10:54 PM
For the above scenario to work, you need to use MATERIAL TYPE "DIEN" which is used for services. Maintain master data for services there, then while doing PO, use account assignment with material DIEN and then MIGO and then MIRO, here no service entry sheet required. You can do MIGO for service receiving against PO.

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Sales Process of JOB WORK

HI
We have new scenerio for JOB WORK PROCESS
Customer will provide us the Raw Material and on proccessing it we will produce two diffrent finish goods
which will be billed to that customer through JOB ORDER
Can anyone tell us how to configure process into SAP .
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PR

hi
Create Sales Order. And Purchase requisitionVA01,Check stock / requirements situation for finished product. MD04
Check list of Purchase requisition     ME5A
Create Subcontracting order with reference to the Purchase Requisition     ME21N
MD04
Post Goods Isue w.r.t to Subcontracting Order     MB1B
Create Subcontracting Challan 4.5/4.6     J1IF01
Create Billing Document     VF01
Post goods receipt with reference to purchase order     MIGO
Post invoice verification     MIRO
this is process for job work ,
this is for one proces another process as same for this document but this maintain the
va01-vl01n(movement type 541)-j1if01 her u can cant maintanin any prise
ofter comes to finshed product ,
u can maintian this process: jobwork charges
va01_vl01n_vf01_j1iin
u maintain the settings for vov8 delivary type only,
in this process u can matain the vov8 for one document type ( it for only internaloreder jobwork)
ofter jobwork chages vov8;maintain normaly
for job work for other material /(rawmaterial) u maintain tcode for j1id - maitain the assessable value for revelant material and plant, and matain subcontract activae in material and chepted id comination,
this cin setting
so u maintain the
two ordr type one is jobwork internal order
another one is job work charges
and also maintain the copy controls(internla order)
Order requirements :    001
Combination requirmt:   051
Header Data :           001
Header Data Ext. Sys : 0
Handling Units :       000
u maintian thia routines for header
Sales doc. type:         jobwork internal ord
Item category   :        Job work item
Order requirements:    101   Item
Item data:      901   Item(101 div change)
Item Ext. System   :    0
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as same of internal order
here comes billing
it for coman billings routines

Ssinging service tax assignment to customer for job work taxinn

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assinging service tax assignment to customer for job work taxinn,procedure ,kindly give me step by step procedure
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Hi,
Enter the correct tax code or maintain the Tax code VR in the transaction code FTXP.
Regards,
Manish

GR for job work sales order

Hi all!
We do a mere job work for our customers. We receive the materials from customers, do some work on it and return back the same. For this i have created 2 material codes for finished and raw as non-valuated material(UNBW). Process is like i have created an enquiry(1300003) , created quotation(1400026)based on enquiry, created sales order(1500079) with reference to quotation and tried to receive the raw material in 501 E or 561 E with reference to sales order.
But when i tried to do goods receipt in MB1C (561 E) with reference to a particular sales order number(1500079) system throws me an error as below.
Account assignment cannot be carried out because of different origin no.
Message no. V1134
Diagnosis
The sales document to which you want to refer is based on sales document 1300003 and item 000010. Therefore, the settlement and possibly inventory management are carried out using the number of the preceding document.
System Response
This entry is not allowed.
Procedure
Enter the document and the item number of the preceding sales document.
System is not accepting the sales order number as reference but its accepting the enquiry number when i do 561 E
How can we solve this issue..
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Hi,
1. create BOM - Customer materials are raw materials.
2. Create a sales order with header materials .
3. Maintain the pricing according to your requirement.
4. the sales order with create a purchase requisition for the sub materials.
5. based on this create a purchase order. Note create a account assignment for the sales order to puchase order with respect to job work.
6. Do MIGO.
7. Do billing to the customer.
thanks
Kuntla

Job work sales Process

Hi all,,
can any one hlep me on Job work process and CIN related process for job work
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Check these threads
[Re: Job work in SD subcontracting. |Re: Job work in SD subcontracting.]
[SD Enterprise structure |SD Enterprise structure]
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Does back ground jobs work process go to private mode or not

Hi Experts,
Can any one tell me
Does back ground jobs work process go to private mode or not
Thanks and Regards
Dan !!

Hi Dan,
I do not think background work processes would go into PRIV mode.
the orginal information was remove by Admin because provided by Cut and Paste from SAP Online Help.
you will find it <a href="http://help.sap.com/saphelp_47x200/helpdata/en/7a/caa6f3bfdb11d188b30000e83539c3/frameset.htm">here</a>
The distribution, participation in distributing or otherwise sending of this material is against the law. The material you are requesting is copyrighted material and available ONLY to customers of SAP. If you need such documents from the SAP Service Marketplace then you must have "S" user ID and login yourself to retrieve this material. If you do not have a "S" user ID then you should contact your own internal company groups responsible and request one or request them to retrieve the document for you.
By participating and sending such documents you are at risk for legal action and a removal of your account here on SDN and BPX.
DO NOT send material via email such as this! Further actions will result in officials within your company and your SAP Sales Account being notified and could result in legal action against you as an individual.

Query regarding Job work senario in India

dear all,
i am facing a strange problem
i m having some Customer who sent material on (4)(5) a or 57F4 challan for job work. In that case only labour charges are charged no excise duty will charged, but how i will take the material "in" in to system,from which transaction code and which movement type i used. Also the storage location should be different for that ?
It Dose not hit the RG1 Register.
can any body help me to solve this
please please solve the problem
regards
pankaj
[email protected]

Dear Pankaj
1. Then i will suggest to use DIEN Material type , which will not be valuated, as
it is customer's stock
2. Then you recieve the material from Customer, which is non-valuated.
This you can do in MIGO.
3 Then you make a production order with BOM, where component will
be material given by customer and FG will be Material you are going
to send along with byproducts.
3. Once material is process(or produced) then you can make a seperate jobwork sales order type and deliver it
4. Finally bill it for services rendered.
If you use Services you will not get stock of customer's material in the system.
But if you use non valuated material you can get the stock. So ask if stock
is required???
As no excise entries are required you need no worry about CIN part
I hope it is clear....
Regards
Jitesh

Solution for job work material

Dear All,
Please provide me what is the best solution or procudure for job work material (for production), also confirm me what effect of component price in Bom.
Thanks

Hi vivek!
Thanks for your reply..
But what is the need of creating PO's.. I am simply receiving the material(non-valuated) form the customer and do some service in it and send it back to him.. I will process this via sales.. But my question is whether should i create a material master for each time i receive a new material since its one time job and weekly we r receiving around 100 new materials.
Thanks,
Raj.

JOB WORK SECANRIO.

Dear Gurus,
We recevie a material for Job Work in our plant .to process this material we have use certain of our in house raw materials and then send it back after processing .
the material coming into our plant is enter as Non Valuate material as its coming for Job work..
the raw material in our plant which we are consuming is valuted materials.
My query is can we can we include the these valuated raw materials in the BOM of non valuted material code and consume them via a Process order ,when we create Job work perocess order for this JOb work.
Thanks in advance
Regards
Ram

Hi Lakshman,
thanks for the reply
you are right.we are the subcontractor.
the material comes into our plant from another party and we process the material in our but we use certain our material.
when we create BOM there no error as such.
will there be any costing or service tax issue or sale tax issues in this case
Thanks in advance
Regards
Ram

Material master for job work material

Hi all!
We are doing only job work for our customers and the products are not regular one . Its a one time job work.. i.e each time different material will come.. So each time i cant create a material master since the frequency is high That is we receive 100 different materials per week and do job work on that and send.. Same material will not repeat again..So how can we substitute of creating material master each time.. What is the solution for this?
Thanks in advance,
Raj.

Hi vivek!
Thanks for your reply..
But what is the need of creating PO's.. I am simply receiving the material(non-valuated) form the customer and do some service in it and send it back to him.. I will process this via sales.. But my question is whether should i create a material master for each time i receive a new material since its one time job and weekly we r receiving around 100 new materials.
Thanks,
Raj.

Job work order for non-valuated material

All SAP Gurus,
We are providing subcontracting services.
For this we have created materials (incoming and outgoing both) as non-valuated.
Now, can we bill the customer for the processing charges/ job work or we need to sale this material to customer?
Please suggest.
Regards,

Hi,
As per your writing,
you are recieving material 'X'
do 'YY' operations
Sending out material as 'Z'.
so you bill the customer for the processing charges/ job work.
regards
Rm

SAP service sales order

Hello experts,
<<Text removed>> I have a requirement where we need to receive parts from customer which we already shipped them before but should not cosider as return or buying them back, and these parts actually belong to that customer. we need to manually receive them into SAP and store them in a partilcuar location and certain test services are performed on them. After service is performed we need to ship those parts to same customer. We need to charge only service charge on those parts but not actual part charge. Please let me know how to handle service sales order in SAP in this scenario. Can we use consignment in this scenario
THanks <<text removed>>
From
Neha
Edited by: Matt on Oct 28, 2010 9:51 PM

Hi
This is more of like a JOB WORK scenario, where you are taking the customer material and then giveing your services and returning the same to the customer.
You have to create the material as a NON -Valuated material. Then you can create a sales order for this material, logically since you are giving the same material to the customer delivery will be required to be created into the system. So you can use the scenario SERVICE WITH DELIVERY.
Take the GR Of the material against the sales order. this will help you keep a track of the material received against the sales order.
Regards
Rishi

Sub-contracting job work

Hi all
Customer (X) sending raw material to my client (ABC) for subcontracting work, after completing job work that is delivered to customer(X).But that raw material delivered directly from some vendor of customer (X).So Excise gate pass for ED credit comes along with raw material. In this case my client avail credit of ED and charge ED on the customer when delivering the material. How to configure this process? We know the material price when inward the material.
How to in ward the material by using MM? What movement type to be used and how to keep the stock as customer stock? How to issue it to production and get it back as sales order stock? When delivering the material the stock should be reduced with 8% process loss ( Evaporation while melting)

Hi Ramesh,
Please confirm,who is having owership of stock and why does management want Product costing to be implementated?
Product costing will not too much extensively advisable for industries who is exclusive in subcontracting.
If business is expecting comparision between expenses and absorbed on service provided then go with internal order or cost center.
Hope this helps you.
Ashok

Job work end product

Dear experts
we received the raw materials as UNBW material for subcontract work. I have to send the final product to the vendor by sales route. For this I have to create material master to this final product as either FERT or UNBW material?
Regards

Hi,
When you are doing a Job Work it ois a service sale...no need to have material code for this...if you have taken UNBW material against 501 movement type...while issuing the service sale invoice to 502 movement type to give effect to inventory.
Regards
Vikas

Factory job work

Please advise the series of activities of jobwork under sap when we
receive material form customers for processing.
Under existing procedure we receive material for jobwork under the cover
of jobwork challan (Annexure-II).
After processing we return the material along with waste/scrat if any to
the customer along with the said challan(Annexure-II).
Challan(Annexure-II) is in two part, Part-I (to be filled by customer) &
Part-II(to be filled by us)
There is no payment of duty/Saletax/service tax is required under job
work. Only we are charging is convertion charges.
Please advise,
Edited by: Ramana Avudari on Dec 8, 2011 4:03 PM

Hi,
It looks like sales process alone is not enough. You also have a production process there.
In general, the process should be like this:
Use materials that are non valuated, or use non valuated sales order stock.
Use MTO scenario with production (maybe even better - assemble to order).
Material flow:
Create sales order.
Receive components from customer in stock (customer stock). Create production order (with BOM or manually enter the components).
Consume comonents and receive FG in stock.
Deliver from stock. Bill customer.
I don't know about challan, since it is only in India.

Service Sales & Job work

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