Subcontracting for a Customer

Question

Dear Friends,
My client has the below scenario :
Scenario 1:  Step 1 : Customer supplies Raw Material A
                    Step 2 : Client  does goods inwards
                    Step 3 : Processing happens at Clients Shop floor (RAW MATL "A" becomes "B")
                    Step 4: Issues to customer Material "B"
                    Step  5 : Invoices Customer for only processing charges
Scenario 2: Step 1 : Customer supplies Raw Material A
                    Step 2 : Client  does goods inwards
                    Step 3 : Processing happens at Clients Shop floor (RAW MATL "A" becomes "B")
                    Step 4 : Material "B " is issued by client to his own subcontractor for some further processing to become "C"
                    Step 5: Receipt of Matl "C" by client from subcontractor
                    Step 6: Clients pays the subcontract for processing charges
                    Step 7: Processing again  happens at Clients Shop floor ( "C" becomes "D")
                    Step 8: Issues to customer Material "D"
                    Step  9 : Invoices Customer for ALL processing charges
NOTE at all stages Materials are NON VALUATED.. since we do not want customer material to affect our stock values.How to Map this.
Kindly help and guide
Thanks
nandu

Answer 1

Hi,
You can adopt the following steps
For scenario 1:
1) Create a Free goods PO
2) Recieve the material A against the PO
3) Issue the material for PP inhouse processes
4) Raise a Sales order and send back the processed material to customer
Scenario 2:
1) Create a Free goods PO
2) Recieve the material A(UNBW) against the PO
3)Raise a subcontracting PO with  item category L
5) Issue the material to the customer( vendor ) th MB1B -541
6) Recieve the material th MIGO for the O/P material(UNBW)
7) Issue the material for Inhouse production
8) Raise a Sales order and send back the processed material to customer along with the Invoice.
Regards
Sandeep