Sub contract process in india version

Hi gurus,
can anybody kindly tell the sub contract process in india? what is the process and how the configuration will be customized? my client having 4.6c, and recently implemented cin version.
given the full points for answer.
Raghav

This may help:
https://www.sdn.sap.com/irj/sdn/wiki?path=/display/erplo/cin+configuration&
If you are talking about sub contractors and withholding tax.

Similar Messages

Shortage qty - sub-contract process

hi,
In sub-contract process:
Vendor suppose to return - 10 qty
but, we received only 8 qty.
Vendor has accepted to pay For shortage 2 qty.
1. How to address the above scenario?. (exciseable material)
reg
mrs

Dear ,
case 1) IF GR NOT DONE YET:
do the GR and , at the time of GR increase consumption qty.from 8 to 10.
that means u have comsumed more than required .then raise the debit note for loss.
reconcille the challan by the same GR doc and complete the same.
Case 2)IF GR is allready done.
reconcille the challan by GR document,then do 542 for remainning 2 qty.re4concille the challan by dat document.and complete the challan.
then take a physical inventory of that material for perticular storage location and post the negative difference .syatem showa that as a loss for u then raise the debit note for the same.
regards,
sujit borse

Sub-contract process with T.codes..?urgent

Hi
can anybody explain me ,
what are all procedures to be followed to carry Sub-contract process with T.codes.
From sub-contract PO to Subcontract challan output
Explain me step by step process with t.codes
Thanks
sap-mm

Hi,
Sub Contracting Process with t.codes are:
(1) You have create material in MM01(Finished Goods ,mat type FERT) that can be procured externally, and you have maintained BOM (CS01) with components (Raw Materials , Mat type ROH). Any waste generated as scraps or by products received during subcontracting process can be maintained as component with negative quantity or in % basis in the BOM in CS01.
(2) Create a subcontracting PO (ME21N, Item Category L). Maintain Purchase Info Record (ME11)for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components(Raw Materials) for SC PO(In ME2O directly or by MB1B with 541 Movement type). 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" .So no accounting document generated by supplying raw material to Sub Contracting Vendor.
(4) You receive (MIGO) 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:
FG BSX acc. Debit Acc.
GR/IR Cle.acc. WRX acc. Credit Acc.
FRL Acc. Debit Acc.
BSV acc. Credit Acc.
BSX acc. of components Credit Acc.
GBB - VBO Acc. Debit acc.
PRD acc. Some time Credit &
Some time Debit
(5) Invoice Verification (MIRO) for SC Invoice.
(6) Payment in F-53
If you are activate Price Diff. Acc. for SC-Vendor in....
OLMB -
> GR -
> Price diff. acc.for SC order while you do GR for your Plant......then Price Diff. Acc. also will be trigered...
Regards,
Biju K

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 Process

my client running fg sub contracting (electro plating )cycle through the MRP
after return from vendor with mvt type 105 (543) i check document list with MB51. i found following g/l account effects :
SFG consumption for sub contract account = 602026
Gr/IR Clearing Account = 164335
SFG-inventory account = 323055
for sub contract account = 602130
Inventory account = 320010
Costs of goods mfg = 602200
but if do whole sub contracting cycle without MRP i can see effect in following G/L a/C:
Manual Cycle .
Inventory account = 320010
Gr/IR Clearing Account = 164335
Price Differance Account = 602155
change in stock = 603010
Sub Contract expense = 603000
SFG-inventory account = 323055
SFG consumption for sub contract account = 602026
my question is why this differance comes ?
if i want gl accounts hit by manual process in MRP process what changes to be made ?

Hi
Kindly check with the following:
In customizing for that plant price differences should or not be posted during GR.
SPRO->IMG>MM>Inv MGmt>GR-->price differences for subcontracting at GR
Thanks

Sub contracting Process issue for A/c entry

Hi All,
While doing the GRN for subcontracting process ,cost object error is appearing for stock change SFG account ( BSV).
Business would like to do not assign the Default cost object for change in stock account. Kinldy confirm whether it is possible to determine Internal order number ,whcih same assigned to GRN for stock in change account SFG.
Any alternative method would be apprecaite
Rgds
SumaMani

Thanks to all of us for answers !!
We solved problem as mentioned !
1. Created separate SFG Stock change over subcontracting GL account and assigned same in OBYC - BSV & profit centre wise internal order defaulted in OKB9 settings.Also created sub contracting expenses GL and assigned OKB9 profit centre wise. ( Problem has been solved with separate GL account of stock change over)
It can be possible to solve with using of substituion GGB0 with module pool RGGB0*
Rgds
SumaMani

Shipping Point Determination for Sub contracting Process

Dear Experts,
While processing the GR for a Sub Contract Purchase Order, we are getting an Error 'VL 100 - Shipping Point XXX doesn't exists'
However, I am not understanding where from this Shipping point is picked.
Checked the Shipping point determination based on Loading Grp, Shipping conditions & Plant. But that is a different shipping point, and it is being picked while processing the outbound delivery for sending components thru 541 Movement.
It is clear that the Shipping point XXXX is not existing, but not sure, as where from that Shipping point is being determined while doing GR
Request for your inputs please
Thank you,
Best Regards,
Ramakrishna Mangena

Hi Ramakrishna ,
What u earlier said is perfectly right : Shipping point determination based on Loading Grp, Shipping conditions & Plant
Check the following :
Are u posting GR through VL31N .
If yes, just check the receiving pt entered in Header Data - Shipment Tab.
Regards
Ramesh Ch

Sub Contract Process

Dear Experts,
I need to complete a sub contract sales process in SAP.
My requirement is
We will dispatch Rawmaterial ex: 10000 TON to sub contractor who will process the Raw material and will supply us back ex: 6000 TON of finished good.
I tried completing this process through standard SAP process
(1 ) Creation of 3rd party sales order
2) Creation of 3rd party PO against the PR number generated from sales order
3) Stock transfer through MB1B
4) GR through MIGO
My issue since I have tp dispatch TONs of raw material, I need a system to record all the good moevemnt truck by truck.
ex: Against a PO 30 truck dispatched, but through MB1B i am able to do only bulk.
Please guide on how I can include this process alsoin SAP.
Thanks.

you try to achieve this?
- Create a PO for 100000 Ton of material.
- This should be carried/transported by 30 trucks/dispatches to the Subcontractor.
- Create a goods Issue to Subcontractor
The conversion of base unit of measure seems a bit complex here due to the variance in truck weight ( one truck can be loaded 1 Ton and a second truck be loaded 3 ton).
Are these trucks leaving the plant at the same time/day?
Do you need to issue goods on a per truck basis, or can you do it on weight basis?
regards
Sidi

Sub contracting Process ( MTO)

Dear All,
One of the my client using Sub contractig process MTO.Defined process like
1. Create process order based on Sales order ( Auto PR generate)
2. Sub contracting purchase order creation agaisnt PR
3. Material consumption againt 261 Movement
4. GR for service expenses
5. Process settlement for 101 Finished goods.
Now my business would want consumption posting along with GR ! But we sre unable to transfer goods ( Sales order assigned stock ) to Vendor SC stock through 541 Movement type. Is there any special way to transfer the same ?
Rgds
Suma

Hi,
The process we have used is and suggested by SAP is-
Prerequisite:
-Create vendor's place as a storage location.
-assign 311 E,312E, 543 E to movt type grouping for subcontracting challan.
- Make vendor field(LIFNR) mandatory at MB1B 311 E .
Process:
1 Create PO for material. with item category L
2 transfer the goods through 311 E to storage location created for vendor's stock.
3 Create Subcontracting challan with reference to 311E material document.
4 Make GR after goods recieved from vendor.
5 Consumption will follow from storage location against PO.(need to give vendor's storage location for consuming material)
regards,
sujit borse
Edited by: SNB on Dec 13, 2010 10:18 AM

Nominated Sub-contract processing in SAP?

Hi,
Nominated sub-contract is a common practice in construction industry. The definition is u201CThe Principal independently invites tenders for the work under a subcontract, negotiates the subcontract and directs the main contractor to enter into a subcontract with the Nominated Subcontractor selected on terms and conditions negotiated by the principalu201D. Below is some reference.
http://www.set.ait.ac.th/courses/ce7022/law/Contents/law_102.htm
http://www.constructionweblinks.com/Resources/Industry_Reports__Newsletters/Sep_05_2005/nomi.html
http://en.wikipedia.org/wiki/Subcontractor
http://www.hklii.org/hk/legis/en/ord/57/s43a.html
http://www.cmguide.org/archives/315
Assuming our company is the principal that will award contract and sub-contract to main-contractor and nominated sub-contractor respectively, and Payment will be settled in the main contract?
Can SAP support the process from initiation to issue of sub-contract to nominated sub-contractor while ensuring no subsequent goods receipt, LIV, payment?
How to maintain the relationship between main and sub-contract in SAP so that any variation order of sub-contract can be reflected in the main contract?
Regards,
Dennis

Hi Dennis, there's a special addition (industry solution) in SAP for Construction; you may read more here:
http://help.sap.com/saphelp_dimp50/helpdata/EN/ed/f27438bb4d11d2b49d006094b93006/content.htm
Br,
Mario

541 & 543 Mvt for Sub Contract Process with Split Valuation

Hi all,
We have activated SPLIT VALUATION for sub contracting in ECC 6.0
We have clasified into 3 Valuation Catergories as New,Repaired & Faulty.
The logic & naming convention of the materials are
New Material : C1
Repaired : C2
Faulty : C3
The details are as.....a faulty material can be converted into Repaired by the external Vendors,for which we raise a PO and do MB1B with 541 mvt type with ref to this PO.
The Acing Entries are
PK      GL Code        Material     Value
99         117000         C3            10
89         117000         C2            100
93         600530                           90
While in process the GR w.r.t the above mentioned PO ,we are getting 6 accounting entries (which is delivered by Stand SAP) they are as
PK      GL Code       Descrip     Value
89         117000        Stock        100
96         117400        GR/IR         150
91         600530        Sub Cont    100
86         600863        Sub Service 150
99         117000        Stock          100
81         600530        Sub Cont     100
Can any please explain me how the system calculates the above Accounting Entry.
We are confused why the system calculates ( entries) for the 91,81,86 Posting Key.
I have uderstood that PK 89 for goods inward, 96 is for GR/IR clr, 99 is for reversal of 541 mvt type.
Other 3 entries i have the confusion ........
Can anyone please guide me and explain in detail how ,why andfrom where the system is calculating the entries.
Hope that you will help me in this regards
Take Care
God Bless
Regards
Praveen.
Edited by: Praveen Singh on Sep 16, 2008 8:07 PM

Go to OMWB and click on simulation and here enter you mateirla number, plant and Mtype 101
Then click on account assignment
you will see all the entries
Posting Lines Text              VlGCd AGC VCl   PK Acct D      PK Acct Cr
Gain/loss from revaluation      -e-   -e- -e-   83 440700      93 440700
Inventory posting               -e-   -e- TRA1 89 130000      99 130000
Incidental costs of external a -e-   -e- -e-   86 460820      96 460820
External activity               -e-   -e- TRA1 86 460960      96 460960
Change in stock account         -e-   -e- TRA1 81 460820      91 460820
Purchase offsetting account     -e-   -e- -e-   40 --Missing- 50 --Missing-
Purchase account                -e-   -e- -e-   40 --Missing- 50 --Missing-
Materials management exch.rate -e-   -e- -e-   40 440600      50 440600
Cost (price) differences        -e-        TRA1 83 440000      93 440005
GR/IR clearing account          -e-   -e- TRA1 86 210005      96 210005
Inventory posting               -e-   -e- TRA1 89 130000

Sub contracting process BOM - In case of material to be disassemble

How to create the reverse BOM in case of Material to be dis assemble at the vendor end.
In this case we will be issuing one assembly to the Sub contracting vendor and he has to dis- assemble the assembly in 4 or 5 different components. How to create the BOM for the same.
Material will be issued as one parts on 541 movement, How to receive the material in the above cases.
Will the Sub-contract PO will contains the disassemble parts of Assembly.
Please reply in detail mentioning the debit credit account also.
Edited by: Csaba Szommer on Jan 10, 2012 8:45 AM

Hi,
Please refer the below links..
Subcontracting Parent material - HOw to MAP in SAP
http://sap.ittoolbox.com/groups/technical-functional/sap-log-mm/reverse-subcontracting-4238643
Thanks.

JAPAN Specific sub-contract process:

Dear Friends,
Please help to know:
u2018JAPAN Specific sub-contract processu2019 details.
Please help to send if any related information.
Thanks in advance.
RAMAN.

Hi Antony,
As per the instructions in note,
I tried to activate --> EA/SCM in ENTERPRISE_EXTENSIONS.
But there are no changes and activation is not appliable.
Please give more details, about the activation / what instruction need to give to BASIS to activate..
Many thanks .. RAMAN.

Sub contract process with excise documents

Hi
I have a scenario in my project
MUM1- Mumbai plant
IN01    -Vadodara Plant
Mumbai is used only as a store for raw material (imported/Local)
Process is from Mumbai raw material (child component) is to be shipped to sub con vendor (1000) any where in India Ex -->Banglore
After processing Subcon vendor(1000) will send finish component to IN01 vadodara plant.
How the process will be mapped for Excise documentation.
required is Cenvat credit flow from Mumbai to Vadodara.
Regards
Ajit k

hi
Subcontracting under Full Payment of Duty
u2022     Creation of Subcontracting PO (ME21N)
here give the delivery add of vadodara palnt ,and the vendor of banglore
u2022     Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)
u2022     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.
Accounting Entry: -
CENVAT Input BED - Cr
CENVAT Input ECS - Cr
CENVAT Input ECS - Cr
CENVAT Suspense A/c - Dr
u2022     Capture Vendor Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)
u2022     Post Excise Invoice for FG received from Subcontractor (J1IEX)
Accounting Entry: -
CENVAT Input BED - Dr
CENVAT Input ECS - Dr
CENVAT Input ECS - Dr
CENVAT Clearing A/c - Cr
Master Data
u2022     MM01- Material Masters for Components and FG
u2022     XK01 - Vendor Master (Subcontractor)
u2022     CS01 - BOM for FG
u2022     ME11 - Purchase Inforecord for Subcontracting
regards
kunal
award if helpful

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

Sub contract process in india version

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