Subcontracting cycle

hi,
i creted PO- ME2O with chanllan in J1IF01 .
But when i receive the goods from subcontractor how i accept the return challan i.e. challan coming from Subcontractor ?
After reconcillation done in J1IFQ. And then J1IF13 for completion of process.Correct me if wrong?
What is the effect if I m not doing the J1IF13?

While doing the GR for the Po for the End product you need to refer to the SC challan.from the Excise invoice tab-MIGO
After that you need to reconcile the Challan with the GR material doc:J1IFQ
Then Complete the Cycle - Complete/ Reverse/ Recredit :J1IF13

Similar Messages

Pl tell me what r all the accountin keys ll hit in subcontracting Cycle

Hi
friends
Pl tell me what r all the accounting keys ll hit in subcontracting Cycle, pl briefly tell me at the time of transfer posting, G/R, & at the time of Invoice....
thanks in advance...
Raghav.KH

Hi,
In subcontracting material provided to vendor but no accounting document generated during transfer posting as material is valuated in your plant level.
In GR, you have following key entries:
BSX (Finished Goods): Dr
WRX (GR/IR): Cr
FRL (Sub. Contract Charges): Dr
BSV (Change in Stock): Cr
BSX (Raw Material/ Components): Cr
GBB u2013 VBO (Consumption of Raw Material/ Components ) :Dr
""*PRD : Cr / Dr(Not always but depends onu2026..)
Regards,
Biju K

COGS account in subcontracting cycle

Dears,
In the subcontracting cycle, the accounting entry is:
Dr. Finished product inventory
     Cr. COGS
Dr. External activity
     Cr. GR/IR
Dr. Consum. Account for raw material
     Cr. Raw material inventory
My question is, why using COGS i thought it should be COGM as it's the cost of total operation, what is the business case for it.
Thanks & Regards,
Ahmed Samir

Hi Ahmed,
During goods receipt in subcontracting process the account assignment logic is as below (as per table T030):
Dr- Inventory Account (Finished product inventory) - BSX
     Cr- Inventory Offset account - BSV
(if there is a variance variances are also posted)
Dr - External Services availed account (External activity) - ERL
     Cr- Gr/ IR - WRX
Dr - Consumption of materials provided to Vendor (Consum. Account for raw material)GBB - VBO
     Cr - Raw material inventory- BSX
So please check account assignmentto transaction key BSV in table T030 (transaction OBYC) for your subcontracted finished goods.
Regards,
Szymon

Subcontracting cycle with duty payment

Hi,
Configration required for subcontracting cycle with duty payment (CIN) with suitable example giving detailed cycle with sap tcodes & transaction data.
Sanjay kohli

Plz follow the following steps for subcontracting
Configuration: -
- SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Subcontracting Attributes
Here maintain following;
Excise Group
Excise TT - 57FC
Subtran Type Text -- 57FC CHALLAN
Subc. Period -- 180
1. Creation of Subcontracting PO (ME21N)
2. Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)
3. Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)
4 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
5 Reconciliation of Subcontracting Challan (J1IFQ)
6 Completion of Subcontracting Challan (J1IF13)
7Generation of Annexure IV (J1IFR)
And you i need to maintain Accessable value in J1ID
regards
anamika

Wrong Batch selection in Subcontracting Cycle

Sear All SAP Gurus,
While doing MIGO for subcontracting PO , I have entered the different batch number against the part provided to vendor, it is giving warning message as below;
Invalid batch according to selection criteria in batch determination
Message no. LB051
I have set this message as error message in the message setting .Path SPROIMGLogistics generalBatch ManagementDefine attributes of system messages and E against cat in the message setting.
Still system is giving warning message and allow the different batches.How to avoid this.
Thanks in advance
Mahesh

closed

Subcontracting cycle for liquid process outside plant

Hi Sappers,
While creating subcontracting PO, whether I have to mention service charge for liquid or material + service charge for liquid?
Can you guide in this senario.???
Regards,
RPA

Hi
In the SC po, you need to maintain only the Service Price for the work.
The finished material price will be the price of the material provided + the service charges,
Thanks & Regards
Kishore

Subcontracting cycle with excise

HI All,
I am sending an exciseable material to a subcontracting vendor for repairs via mvmt type 541 on 54FC challan.
Now i am receiving the same material back via MIGO.
Kindly explain how to configure this entire scenario for an exciseable material involving excise duties.
regards

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: -
- 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

Subcontract cycle

Need to do two operations, from two sub vendors. After completion of on work from one sub vendor, that should go directly to second vendor for second operation. then retur back to us. how to do?

Hi,
I understand from your text:
In my process. customer given the raw materials ,( procure from customer )
Raw materials procure from customer only so no need to maintain the materials cost.
so , there is no need to capture the material cost., write ..?
1.first create Sales Order.
2.Do the Inbound delivery.
3.Do the plan order(either Production /Service).Here PP & CO consultants role required to how to capture the cost.
4.Finish the Activity & send the Material + invoice.
regards
Rahim

Inbound delivery for subcontracting PO with BOM explosion

Hi all
The requirement is like this
Normal subcontracting cycle - Subcon PO and then 541
After that i did inbound delivery in VL31N for the subcon PO , Here iam getting the finished goods line item so that i can enter the delivery qty and serial number for the finished componenet
My query is , Is there any possibility of exploding the BOM and entering the serial number for the assembly level materials in the inbound delivery itself.
After that based on inbound delivery i can do GR , Your inputs pls
Regards
Amuthan M

Hi M.
You can do that using MIGO but not through VL31N.
For that you have to set the serial profile for component before.
IMG -> Logistic Execution -> Shipping -> Basic Shipping Functions -> Serial Numbers -> Central Control Parameters for Serial Numbers
IMG -> Logistic Execution -> Shipping -> Basic Shipping Functions -> Serial Numbers -> Determine Serial Number Profiles
After that you have to set the serial profile for the component.
Hope this help
Regards.

Item Category 'L' (Subcontracting)

Hello,
I would just like to ask if a UB-type PO (Stock Transfer Order) could have an item category 'L' which is Subcontracting. Currently, only item category 'U' (Stock Transfer) is available in the item category field when creating a UB-type PO through transaction ME21n.
Do adding item category 'L' (Subcontracting) in the system's configuration for UB-type (Stock Transfer Order) PO makes any sense?
Please let me know your thoughts regarding this matter.
Many thanks in advance.

Hi,
item category L made for only Subcontract cycle.we can not use L in UB by following reasons.
When u use UB Doc type you can not enter SC Vendor in PO even after config L with document type UB,system shows supplying plant field.
UB can be used in Plant to plant transfer or Company code to company code transafer or Storage location to storage location transfer.
since in subcontracting cycle there is a involvement of SC vendor which has subsidiary ledger under reconciliation account and Goods issue (Components or BOM ) lying with SC vendor under special Stock, which will further consume useing movement type 543 during MIGO this functionality is not possible with UB.
Hope this will clear your doubt.
reward point
Regards,
Ashish Vats

Subcontracting with Vendor's own material.

Hello
I have a scenario wherein client sends a component for machining to Vendor and pays for the machining charges to the Vendor.
It happens that Subcontracting Vendor attaches say a nut bolt(hos own material,we have not provided the same) to the maxchine and gives it back.
How this scenario can be mapped in Subcontracting cycle so that we can pay the Vendor for machining and nut bolt.
Regards

SAP procurement subcontract process maps exactly to your real subcontracting process.
Prerequisite: turn the material to a BOM via CS01.
1. ME21N create subcontracting PO
    On the PO screen, select Item caetegory "L     Subcontracting" to make the PO a subcontracting one.
2. ME2O Send material components to vendor
    At this step, there'll no accounting document posted. Components sent are still your company's possesses.
3. MIGO Goods receipt the expected material and sent components to storage location.
    Now, The sent components values will be transferred to the received material. Payable amount is the amount entered on the PO for their additional components and subcontracting service.
Hope this helps,
Best,

SUBCONTRACTING CYLCE

tell me subcontracting cycle with excise duty with Tcodes

Hi,
As per the Central Govt Law,
The components are giving to Sub contractor (if they are excisable - this come to know throgh the Excise Dept)
1.Without payment excise (The Subcontract vendor must retun the Finished product or damaged components with 6 months from goods taken)
2.With payment.(no restriction of 180 days)
J1IF01
Create a subcontracting challan
J1IF11
Change a subcontracting challan
J1IF12
Display a subcontracting challan
J1IF13
Complete, reverse, or recredit a subcontracting challan
J1IFQ
Reconcile quantities for subcontracting challan
J1IFR
List subcontracting challan

Subcontracting Issues

In subcontracting Cycle , we have created a scheule aggrement.We have also maintained the production version in Purcahasing info recoed for Material & vendor combination.A goods receipt has been done for the part qty agains the sheduling aggrement.Now we have done some changes in the BOM of the material.But this new BOM is not getting explored at the time of GR,Why?How the changes in BOM can be automically tracked in PO or scheduling aggrement ?(if GR for the part qty is done)
Thnaks & regards,
Sachin

hi,
You have changed the BOM today(23.04.2008)
but the P.O date is earlier date((20.04.2008) so the BOM will not flow.
you have to shortclose the line item and create a new line item in the same p.o and change and do the GR now the New BOM will flow.
(OR) shortclose the old P.O and create a New P.O and do the GR ,new BOM will flow
Please try
G.Ganesh Kumar

Subcontracting Reconciliation

Dear All,
I am trying to run Subcontracting Cycle.
I am doing foll Steps:
Create Subcontracting PO : 450000001
Ordered Material: M1 -quantity 2
Materials Sent: M2 - quantity 10
M3 - quantity 6
ME2O: 490000023 for Materials M2 and M3
I create Subcontracting Challan wrt Mat Doc 4900000023... Chalan number 1001
When i recieve Material M1 from the Vendor there is wastage of the materials M2 and M3 and hence M1 material only 1 quantity was posted in GR against PO. Material Document generated was 5500000034.
I did not capture any excise invoice during this.
Now i still have some quanitities of materials M2 and M3 pending as subcontracting Stock in my system, but it was lost by subcontractor during the processing.
I also am trying to reconcile the Subcontracting challan 1001 created earlier.
But which of the above material documents should i use to reconcile.
Please tell me whether i am following the right steps.
Also could anyone explain what steps to follow to reconcile the challan and what input material document should be given.
Please help. it is very urgent.
thanks.

Hi Jyotsna,
While reconsile SC challan u hve to enter the Goods Receipt number, Fiscal year and Subcontracting Challan number.
Hope tht it may help u to reconsile the SC challan.

PROBLEM IN SUBCONTRACTING P.O

DEAR CONS
I CREATED A SUBCONTACTING P.O & IN THE COMPONENTS I entered the components & as well as the scrap from vendor (free item) . The system does not post it. gives a message Update control of movement type is incorrect (entry 101 _ X Q B _ V)
Message no. M7226
Diagnosis
The system could not find entry 101 _ X Q B _ V in any of the movement type control tables.
Procedure
Cancel current processing.
Contact your system administrator.
Action to be taken by the system administrator
Check in Customizing for Inventory Management under Copy, Change Movement Types whether the entry is contained in the Update control view for the movement type.
If the entry is missing, proceed as follows:
 For standard movement types, this means that the given process is not supported using the present data combination. Do not create any entries without prior arrangement with your SAP consultant. Otherwise, incorrect postings may result.
 For customer-defined movement types (beginning with 9, X, Y, or Z), this may mean that they have not been fully defined. Delete the movement type and re-create it by copying a standard movement type.
pl.solve this problem & gives step by step by which i can make setting.
thanking you
nirupama

Dear Nirupama Swain,
Frist check ur Stock overview Child material stocks to issue the material to subcontracting vendor.
Maintain the BOM with T.code CS01
Pls follow the steps for Subcontracting cycle:(without payment of Excise Duty)
1. A Subcontracting Purchase Order is raised on the Vendor with Item Categery 'L'
2. The Materials are transferred to the Vendor through a 541 Movement Type with T.Code MB1B
3. A Subcontracting Challan is created.
4 The Semi finished Material is received from the Vendor through 101 movement. A 543 movement occurs for the components
5. The subcontracting challan is reconciled.
6. The challan completion process is carried out.
7. Invoice Verification for the vendors invoice occurs
With regards,
B.Ravindranath

Subcontracting cycle

Similar Messages

Maybe you are looking for