Subcontracting from EOU

All SAP Gurus,
We are having two plants under same company code
One plant (1000) is an Export Oriented Unit
Other plant is a domestic plant : 2000
plant 1000 is needed to give certain material for subcontracting, but being an Export Oriented Unit it can not give material for subcontracting directly to subcontractor.
So plant 1000 is giving the material to 2000 plant, which then passes on to the subcontractor.
So two subcontracting challens are created for the material being subcontracted.
STO betwwe plant 1000 and plant 2000 is not possible. as plant 1000 is Export Oriented Unit.
How, this scenario can be mapped.
Regards,

Hi,
You can transfer the materials (subcontracting components) from 1000 to 2000 through sales process (sales order, develivery and billing etc). After completion of subcontracting process at 2000 you can receive the material (finished product) through purchasing (Just like normal domestic purchase). Here you need to create plant as vendor and customer.
Subrahmanyam

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Profoma invoice for Export sales from EOU plant rounding problem

Hello,
While creating profoma invoice for Export sales from EOU plant according to standard Tax procedure TAXINJ excise duties appears as JMOD , JECS, JA1X. But due to legal implication we have to bifurcate them in following
BCD
CVD
ECS on CVD
SEcess on CVD
ECS on total duty
SECess on total duty
Additional CVD
Now because of rates get rounding of total does not match with bifurcated duties. The duties should match as per below
JMOD = BCD + CVD + Additional CVD
JECS = ECS on CVD + ECS on total duty
JA1X = SEcess on CVD + SECess on total duty
Regards,
Nimit

You can achieve this with standard functionality, but you will have to make some configuration change:
- Create the new movement type
- Create the new MM account assignment
- Create a new schedule line category
- Create a new item category
- Create the assignment of the new schedule line category to the / a (new) item category.
Maybe you have to create a new item category group to ensure that the proper item category in the sales order is being determined.
Around user exits in MM in account determination: I'm not aware of any (good) ones, but you might want to take a look at the Business Transaction Events (transction FIBF). These are also a kind of user exit and might provide the functionality you are looking for.
If you can't accomplish the requirement through an enhancement (user exit, BAPI, BADI, BTE) you might want to consider using an intermediate G/L account during the Post Goods Issue. And then during the release to accounting doing an accrual to the "correct" G/L account, since in the (standard) Revenue Account Determination you can use all kinds of criteria.
Regards,
Jan Pel

Subcontracting from Depot

Hi all
I need to do some sobcontracting work from Depot
our depot is in mumbai and the sucontractor is in gujrat
here we are trying to do normal subcontracting cycle . but my concern is how can we handel RG23D register in this case
so can anybody let me know how will be the cycle for the subcontracting from Depot

Hi
thanks for the reply
there are two different material for this
actual scenario is we have material in drums at our depot which come from STO
now we want to repack that material in small packets of say 10 kg
now this process is done at subcontractor in gujrat (depot is in mumbai)
now i tried doing scenario and it works fine as follows
1created PO for subcontractor
2 material issued
3 created 57F4 chalan
then did GR for finished product
now my question is do i need to create a excise invoice in J1IG if the FG is excisable ??
as if i do J1IG it reflect my entries in RG23D register
please clarify if any one did the similar process in past

STO from EOU plant to DTA plant

Hi,
I need a help on one issue.
We are doing STO from plant to plant under one company code with delivery with SD(mvt type 641)
I have done following steps
1. Create ST PO ME21N (receiving plant)
2. VL10F(supply plant)
3. J1IIN(suppl plant)
4 MIGO against outbound delivery(Recei plant)
Excise invoice number- XXXXXX(Generated thro' J1IIN)
Now problem is that,as per excise laws, EOU pass on 20% BED, on that 2% ECS,1% ECS
But receiving plant(DTA) can take CENVAT on 18% only & remaining 2% has to be inventorised.
How to do this in SAP?
Please guide me
Thanks & Regards,
Piyush

hi ,
Steps :
1) Only capture the excise invoice at MIGO
2) Then in J1IEX overwrite the values of credit taken to 18% value then ur 2 % value will automaticaly loaded on inventory.
regards,
sujit

Subcontracting From MUltiple Vendors

Dear Experts
Please help
I made a subcontracting PO for Vendor A with of 100,but he did not made the material of desired quality ,so i sent the same material to vendor B 60 pcs and vendor C 40pcs(without bringing in to factory premisis ).After B & C done the job work.I recieved the material.
How this can be done in system.What are necessary steps reuired to do this.Please guide.
Regards
Raj

Hi,
One of the solution is :
1. Do 542 movement and get back the material from A in system , cancel subcontracting challan thru J1IF11.
2. Create 2 POs for B & C Vendor
3. against that 2 POs create transfer posting(541) & create separate subcontracting challans
Regards,
Vikas

Procurement from EOU

Dear Gurus
We have the following scenario. Procurement is being made from 100% EOU Unit. The seller charges
BCD
CVD
E cess on CVD
HS Ecess on CVD
E cess on duty total
HS Ecess on duty total
and Vat / CST
I have incorporated everything except Vat / CST in import pricing. CST can be included in import pricing, however problem is with vat. If the seller charges vat, then modvat is to be availed. How do I incorporate this in import pricing.
Viral Bhinde

Hai Viral Bhinde
I am also facing the same scenario as you faced earlier.
"We have the following scenario. Procurement is being made from 100% EOU Unit. The seller charges
BCD
CVD
E cess on CVD
HS Ecess on CVD
E cess on duty total
HS Ecess on duty total
and Vat / CST
I have incorporated everything except Vat / CST in import pricing. CST can be included in import pricing, however problem is with vat. If the seller charges vat, then modvat is to be availed. How do I incorporate this in import pricing."
Kindly let me know how to setup the system to acheive above requirement
Thanks in advance.
Thanks & Regards,
Kumar

Purchase from EOU

Hi all,
HOw to calculate the price and taxes for purchase from Export Oriented Unit.
Supplier invoce includes CVD also. Where can have these condition type?. in pricing procedure or Tax procedure?.
Or is it same as import pricing procedure?
Thanks.

Hi all,
Can i use Import Pricing Procedure for the same?
Thanks.

Subcontracting from QI

Hi,
Can you please let me know if we can do a transfer posting (MB1B) directly from QI stock to subcontractor? If so, please let me know the movement type to use. My client doesn't want to use 541.
Thanks,
Ram

Hi,
You can not send the material to your sub-contractor directly from QI stock. The system will give error in this case as 'You must clear QI stock from QM'. Hence you will have to take material to unrestricted use & then send the material to subcontractor. If you don't want to use movement type 541, then you can use movement type 311 (Storage location transfer). Create Vendor storage location in your plant & then transfer the material to the vendor storage location from existing storage location. Do not forget to enter vendor number while doing transfer posting. The only thing here is that you can not transfer material to the sub-contractor by refering to the PO. While doing MIGO, change the storage location of components (sent to sub-contractor) to the vendor storage location (system takes own storage location as default).
Regards,
Prashant

Export Oriented Unit EOU supplying material to Non-EOU

How to configure such a requirement.My present scenario is as follows:
Material sent from EOU to Non EOU plants under SOPO with Basic+ Excise+ Custom Duty in SOPO method. Custom Duty Loaded on Material, Excise charged is taken as CENVAT Credit, Receivable u2013 Payable Adjustment for Customer/Vendor Knocking Off.
Additional New Reqd: The above process will be followed along with the process where the material will be purchased from EOU by NON EOU under advance license. u2013 Material will be transferred only on basic price with NIL Duties (Custom Duty &All Excise).
Regards,
Arun

Hi, If your plant is in excise free zone,the excise amount will have to be loaded to material cost at the time of GR as per procurement cycle.for that you need to use the non-deductible excise conditions for BED(JMIP), ECess(JECI) and SECess(JSEI).
In the same way when you are transferring the material from excisable plant to non-excisable Plant,the excise amount to be captured from the supplying plant and while doing inbound delivery the excise cost will be sumed off with the material cost.In the reverse case there is a loss of excise,So I hope this is not a allowed business otherwise in the excise Plant you have to make Gr by selecting No excise in the excise Tab at header of the MIGO.

Excise duty at duty free plant ie EOU

HI expert
I have duty free plant ie EOU, where at the time of Procurement i dont pay duty for material and some the same material i will use for export basis.
Now my scenario is.
1.for the same material now i use it for local sale purpose, so now i have to pay the full duty for which i have done import procurement and i want to load on the same material.
2. i am doing STO from EOU plant to to another plant, for the same the excise people of the eou plant tell me to pay the Excise duty first then send and i have to load ll the duties on material and.
How should i achieve this scenario
Regard
Nabil

Hi,
For any excise free zone,the excise amount should be loaded to material cost at the time of GR as per procurement cycle.for that you need to use the non-deductible excise conditions for BED(JMIP), ECess(JECI) and SECess(JSEI).So the amount populated in those condition types will be loaded automatically to the material cost at the time of GR.
In the same way when you are transferring the material from excisable plant to non-excisable Plant,the excise amount to be captured from the supplying plant and while doing inbound delivery the excise cost will be sumed off with the material cost.In the reverse case there is a loss of excise,So I hope this is not a allowed business otherwise in the excise Plant you have to make Gr by selecting No excise in the excise Tab at header of the MIGO.
Hope this will solve your query.
Thanks & Regards,
Bijay Pradhan

MM pricing EOU

Hello Experts,
In MM pricing procedure for local Purchase from EOU.
the Structure is as follows......
A--BCD=7.5%(50% of 7.5%)
B--CVD 14% -
Cenvatable
CESecc on CVD2%----Cenvatable
DSECess on CVD 1%-Cenvatable
E--Total Custom Duty --ABC+D
F--ECess of Custom Duity 2%-non Cenvatable
GSECess of Custom Duty 1%- non Cenvatable
H--Net Duty DTA clearance --EFG
IECess on Net Duty Clearance 2%-Cenvatable
JSECess on Net Duty Cleanance 1%---Cenvatable
K--Value of Goods -- HIJ
L--VAT 4%
TOTAO VALUE-----K+L
Please suggest how to configure the above mentioned Cenvatable ECess and SECess condition types?
These condition types should be manual Enrty in PO.
And should be able to take CENVAt CREDIT while capturing the Excise Invoice.
Please Suggest at earlist.
Answers will be rewarded
Thanks & Regards,
Vinod Kshirsagar

>
oily oily wrote:
> Hi MM pricing gurus !!!
>
> How can we see pricing conditions after follow on documents in MM side ?
> I mean - In P.O. I can see a condition tab , but when I post a material document
> or invoice verification document , I cant see pricing conditions any where ?
> Moreover during a MM cycle , at what stages you can re-price ? How it is done ?
>
> Thanks !!
> Regards,
> O
Hi,
To see the pricing in material document (during goods receive), the only way I know of is to open the related PO. So that doesn't really answer your question, does it?
Anyway, you can still change the price after the GR is done, but the price difference will only be posted to the material AFTER the Invoice verification is completed.
Thanks,
Anisah

Subcontracting within company code

Hi
We have scenario of subcontracting as follows
We have two plants in SAP one is Manufacturing Plant (1001) &
other is Power Plant (1009)
Plant 1001 is having excise registration & 1009 is not excise
registered. We are supplying coal which is excisable from 1001 to
1009 as a raw material & receiving power from Power plant as finish
product. But in SAP how can we achieve this. Following are some doubt
regarding the same
1. Subcontracting from one plant to another plant is not accepting
in PO
(Massage is coming: Subcontracting as stock transfer within a company
code not possible
Message no. ME645)
2. How we can send material from one plant to another plant fro
subcontracting
3. What will be the behavior of inventory of COAL in power plant
in case of Valuation & Costing of Power?
4. How the costing of Power will be done
5. If we create Power plant as different vendor rather than plant
vendor , how power plant will receive material & effect of the same
in inventory & costing of power
6. Also business want to create subcontracting challan & other
legal documents
Is there in other Work around solution for the same
Please provide suggestions on the same
Regards

Hi Advait,
I have the following to share regarding your scenerio.
1] Create the power plant as Jobwork Vendor.
2] You will supply the coal to this Jobwork vendor against 57f4 document(Jobwork basis).
You can also use MoT 541 and 542
3] Power plant(Jobwork vendor) will receive this coal as a Non-Valuated materail. He will receive the coal on a UNBW material code.
4] Power plant can easily consume this coal against the power generated.
5] Definitely there will be a mechanism with you to measure how many power you have received from the power plant.
6] Power plant will charge only labour charges against the power provided to your plant as he has already consumed your coal to generate this power.
7] In this way the coal at your end will be valuated for you but simultaneously non-valued for power plant.
I think this is what your management requires.
Hope this will help you.
Best Regards,
Amol

Subcontract one operation

Hi all,
I am creating a production order in which 2nd operation is subcontracted from other plant. I have set up control key PP02 for that operation in routing. Also set up in order type dependent requirements for automatic create PR on release. But i am still not able to get purhcase request on release of order.
Please help
Thanks

Hi,
Please check if the sub-contracting check box is selected & purchase info record number is entered in the routing for the seond operation (control key PP02).
Then after release of order goto the operation overview, double clcik the second operation & check the enternal processing tab page.
Regards,
Senthilkumar
Edited by: Senthilkumar SD on Apr 10, 2008 11:28 AM

Complex Subcontract scenario

Dear Sir,
We have a following complec Subcontracting scenario .
We are in the business of Machine Manufacturing . The Frame of Machine is manufactured on subcontract from outside vendor . As per the BOM of the Frame , it consist of 3 different cut-size plates in some specific profile . Depending upon the workload situtation , we some time give cut size plates to Vendor as the input material . But some time we do not give the cut size plates , rather we give to Vendor a Full long size plate and Vendor cut the plate and fabricate the Frame . The remaining plate is used by Vendor in the Subcontract orders which will be comming in future . The amount is paid to Vendor based upon the weight of the Frame received .
Pl guide us , as what steps we have to follow in SAP so that we are able to send /control the material to Vendor and make the correct payment also .
We assure to give full marks for the suggested solution please .
Rgds
B Mittal

Hello Mittal,
You can also carry out planning for components to be provided in subcontracting using an
MRP area by defining an MRP area for every subcontractor and assigning the components to be
provided to the MRP area of the subcontractor. You therefore plan the requirements to be
provided for these components for one subcontractor separately from all other requirements.
a. Create Purchase Requisitions with item category L (SC). You can use standard Purchase Requisition (AB)
b. Create and release Purchase Order with item category L(SC).
We can use standard purchase order document type NB.
c. Provide the components in the PO that are required to
manufacture the items. If the items are created using CS01 (BOM) use explode BOM button and select the parts that are required to be provided to the vendor.
d. Check the availability of the goods.
e. Provision of components to vendor. The stocks are managed
under stocks provided to vendor. The components are transfer posted from UR stock to Stocks provided to the vendor.
f. The vendor delivers the goods and the GR is made.
g. You can check the stocks provided to vendor using MR8
transaction.
h. The SC vendor furnishes Invoice that can be entered using
MIRO
And as per last reply you can manage the goods you are sending out while creating a outbound delivery from ME2O.
Regards
R.Brahmankar

Sub-contracting scenario

Dear Gurus,
We have two manufacturing units,one is an EOU(Export oriented Unit) and the other NON EOU unit.
We get an export order (subcontracting order) for the EOU from a client in country X. Some of the processing is done in the EOU, and then sent to the Non-EOU.
How can I map the material movement between the two units?
Note: The material is maintained as a non-valuated material in both the plants. Since it is maintained as non-valuated, we cannot create a sub-contracting PO when sending the material from EOU to Non-EOU plant.
Regards
Ram

Hi,
I think you are speaking about two subconracting POs:
- one subcontracting PO was issued by your client to your company
- second subcontracting PO is becasue your company manages the production between the business units --> I think you are asking about this
Do the business units belong to the same company code (intra-company process)? If yes, there's no point in speaking about subcontracting.
Re: plant to plant subcontract
Even if it is inter-company (cross-company) process you shoul be able to send non valuated material (component) to special stock (OSS note 80267) via subcontracting PO or you can use STO (as in case of intra-company).
Please specify your question if my answer is not relevant.
Regards,
Csaba

Subcontracting from EOU

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