Subcontracting / Job work

Hi All,
I have an issue with subcontracting / job work. We are raising a production order and from there we are receiving the purchase requisitions both for job work and subcontracting.
We are issuing raw materials for production order. Now in between the routing of the material we have job work and subcontracting operations. Now how to post transfer posting to vendor in MB1B. If I do this there will be double consumptions of the stock.
I need to raise the subcontracting challan for to take the material outside.
Also please let me know if there is any movement type where I will transfer post or reserve the stock that I have issued to production to a subcontracting vendor. I mean i want to transfer post "production order stock" to vendor.
Regards
Ayyallas

Hi,
What our practice as follow:
1. ME21N to create a PO with item category "L" as subcontracting.
     Note, please ensure that you have a BOM for the finish goods, otherwise you can enter the component manually during ME21N, which is under the Material Datatab, and then click on "Component" button.
2. Because we are using a external subcontractor, so we always use ME2O to monitor if there is any request of componet for the subcontractor, in ME2O, you may create the delivery "Outbound Delivery"
3. Once everything ok, finished goods has processed, we run MIGO for goods receipt, which will have a mvt 101 to increase the stock for finished goods and mvt 543 to reduce the stock of component in Subcontractor stock.
Regards,
Chee wee

Similar Messages

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    This is very sorted out topic.
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    - SDN Article on [Direct Subcontracting Process (SAP SD & MM)|http://www.sdn.sap.com/irj/scn/index?rid=/library/uuid/d0dbde93-6fa4-2c10-edb9-e477fa85b232]
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    - Job work in SD subcontracting.
    - SD - Subcontracting
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    SPRO - Logistics General - Tax on Goods Movements - India - Business Transactions - Subcontracting - Subcontracting Attributes
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    Hi sehgal ,
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  • Job Work with Payment of Excise Duty

    Dear Gurus,
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    Regards
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    Hi
    As per my knowledge,If you are sending your material with full excise value to your subcontracting vendor means its one type of saleing
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    Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)
    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.
    Capture Vendor Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)
    Post Excise Invoice for FG received from Subcontractor (J1IEX)
    Regards
    Kailas Ugale

  • Sales Process of JOB WORK

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    hi
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    Handling Units  :       000
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  • Material Clear from Job worker Premises.

    Dear Experts,
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    Hi,
    1. MB1B - Transfer Posting material from Subcontracting Stock to Own Stock via movement type 542
    2. J1IF11 - Here delete the Subcontracting Challan

  • Job work from Vendor Stock

    Dear Expert
    I want to purchase some material from vendor and immediatly i want to send this material to some other vendor for some jobwork (without bringing into my plant premises).After job work material will be come back into plant.Please specify what steps are required.
    Thanks in Advance
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    Hi In this case subcontracting process will work.
    For procurement of the required materials create the PO and then do the goods receipt for that PO.
    For issuing of materials to the other vendor (subcontractor),
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    2.  In the same PO you mention the components as the material that you will supply)
    Issue the material to the other vendor through transfer posting with the movement 541 or through ME2O.
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    While creating the PO for the required material, in item details delivery address tab select the flaf for SC vendor, there you can mention the vendor number (subcontractor) to whom you want to send that material.
    In this case while doing of GR for the PO with 101 movement, automatically system will post the material to 541 movement.
    Thanks & Regards,
    Govardhan

  • Machine part (From the Plant sending )outside for  job work

    Hi
    i want to send a machine part present in working location (but not a stock item) outside the plant for job work and that part is excisable material.
    How can i send this to vendor or
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    Regords
    manju

    I  want to send a machine part present in working location (but not a stock item) outside the plant for job work and that part is excisable material.
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    Hai,
    1.Do the MB1A with 202 mvt type to get back the material from the Work location Cost center to Storage location.
    2.Create the Subcontracting PO without payment of excise duty ie., with subcontracting challan. Here the components provided to the vendor & material at item overview should be the same.
    3.Do the MB1B - 541 Mvt type transfer posting.
    4.Create the subcontracting challan w r t material doc by J1IF01
    5.Do the MIGO for SC PO.
    6.Reconcile the SC Challan.
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    8.Do the LIV for SC PO.
    9.Do the MB1A with 201 MVT type to issue the material to the Work location.

  • Need ED for job work material

    Dear Sir,
    We have a scenario like, we are sending material to Vendor for job work and he is sending back the same material without adding any materials in it but he is collecting Excise Duty as well as service charge. Now for service charge I will rise service P.O and for excise duty I will rise ordinary P.O. but at the time of GRN and MIRO transaction material value should not flow, only Excise duty to be posted in MRO transaction. Please provide your suggestions.
    Thanks,
    Manoj

    Hi,
    Why is it necessary for you to pay excise duty. Subcontracting is exempt from Excise duty if the raw materials have been converted to finish materials and the same returned within 180 days. This requires the creation of a Subcontracting challan.
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    MB1B  - Transfer posting components with respect to PO.
    J1IF01 - Create Subcontracting Challan
    MIGO  - Goods Receipt of Finish Material in 101 and consumption of components in 543 movement type.
    J1IFQ  - Reconciliation of Challan.
    J1IF13 - Completion of Challan.
    J1IFR  - Annexure IV Report
    MIRO  - Invoice for conversion charges(Service charges).
    Regards
    Binoy

  • Job work sales Process

    Hi all,,
    can any one hlep me on Job work process and CIN related process for job work
    Regards
    Mastan Rao

    Check these threads
    [Re: Job work in SD subcontracting. |Re: Job work in SD subcontracting.]
    [SD Enterprise structure |SD Enterprise structure]
    thanks
    G. Lakshmipathi

  • Job work senario,

    I have a Job work scenario,  material 999 goes to the sub contractor and comes back after processes and some more material is assembled to it , when it comes back it gets a new material no 888.  how  do I track the stock for 999 and which type of order do I create to job worker. or is there any other way i can handle this activity.

    Hi
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    Reward if useful
    Regards
    S.Baskaran

  • Job work scenerio

    Dear All,
    We are implementing SAP in one plastic manufacturing industry. Here they are doing job work. All BOMs are supplied by customer and they manufacturing product and return finished material to same supplier. They charging only conversion charges
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    Regards,
    sakthivel

    Hi,
    Please try to create Subcontract purchase order as normal as you create, Only tick on Free check box button.
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    Mahesh Wagh

  • Job work Return

    Hi Friends
    I am facing one problem regarding process tracking. Well scenario is we receive our semifinish from vendor after job work.Some of job work material are not fully furnished some times it s not polished well etc... Now my client again sent this material to Job worker for rework against subcontracting challan. Now i am making a return delivery against GR but system is not allowing me to raise subcontracting challan against this document.So kindly guide me how track this process.
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    Vivek
    Edited by: Supergene on Feb 28, 2008 3:12 PM
    Waiting for your reply...

    Hi,
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    Then u will be able to create a challan with this material document.
    Regards
    Krishna

  • Job work order for non-valuated material

    All SAP Gurus,
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    Hi,
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    regards
    Rm

  • Job worker billing analysis and verification through stock transfer note

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    Phalgun Patel

    Hi Phalgun,
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