Subcontracting process to scrap expired materials??

Hello experts, I have following situation at the client and I need to find a solution ASAP.
(1)Client wants to scrap expired materials using Third Party Company.
(2)I am thinking of using SAP Subcontracting process to execute.
(3)I did the goods issue to the Third party Company.
(4)Now I donu2019t want any materials or components coming back at the time of GR, other than the service from the Third Party Company for scrapping of the materials. How to execute this process???
Any advice is greatly appreciated. Thank you
Here is what I think:
1) in case we are sending the material to the third party then why it is not a direct selling of the scrap? It can be treated as a scrap selling to the third party as a customer.
please explain me the scenario as why the third party is required .It is interesting one to solve then

Similar Messages

What about scrap generated dooring Subcontracting Process

Hi all
Good Morning
In Subcontracting Process(i am sending Components to vendor).What about Scrap generated, how can i enter dooring Migo - Goods Receipt
Regards
Manju

hi
frist ly u have to maintain the scrap quantity in -ve value in the subcon po then do the normal process of gr and at time of gr give the actual quantity of the scrap
but at this stage the system will show the scrap quantity to the subcon stock ,so to make it to own stock do following
1.
Scrap
What kind of scrap we are speaking about?
a) If you pay the scrap you can get rid of it by MB1A + 551 + 'O' directly from SC vendor's special stock (I mean you can scrap the raw material (subcon-component)).
b) If the scrap was delivered by your to SC vendor via MVT 541 you can use MB1B + 542 to bring it back. It may happen that the raw material was delivered by one of your other vendors to your SC vendor (in this case the goods got to the special stock via MVT 101 O) - if the situation is this you can create a return delivery (MIGO + PO reference + MVT 122) and ask for replacement. You can also use MB1A + 551 + 'O' or MB1B + 542 - it depends how you want to handle the situation from business point of view.
2.
by-product
You write the by-product with negative qty in the BOM or directly into the component list of the subcon-PO (item level, material data 'tab' in ME2*N). This will be booked by 545 to special stock and if you want to receive this material you can use MB1B + 542.
the simple process steps are
1> create a bom tcode cs01 and mention the components and the scrap material but with -ive quantity
2> creaet a info record with the subcontracting category tcode me11
3> create a po with item category L tcode me21n
4> do the good reciept tcode migo
5> do the subsequent adjustment tcode migo but the display variant should be subsequnet adjustment
6> do the gr of scrap tcode mb1b movement type 542
7> do the invoice
regards
kunal
award if helpful
Edited by: kunal ingale on Aug 9, 2008 7:45 AM

Goods Receipt in Subcontracting process

Hi,
I am beginner in SAP.
This is regarding Goods Receipt in Subcontracting process.
I have provided raw material Quantity = 100 Nos. to subcontracting vendor.
Subcontracting vendor done machining on 80 Quantity, and we have done Goods Receipt for 80 Quantity as Finished Parts.
Subcontracting vendor found 20 Quantity as Defected.
Shall I take back 20 Quantity by Movement Type 542.
OR
Shall I do Goods Receipt of 20 Quantity as Finished Product and price = 0. & then stock transfer of Finished to Raw Material.
Please reply.

Hi,
It depends on what you want your subcontractor to do with the faulty raw material stock - if you want them to scrap it you can scrap stock from subcontractor stock using movement type 551 and special stock "O" (the system should prompt you to enter the vendor code). If you want it returned for you to scrap it - movement 542 to return it then scrap it from your own stock.
You shouldn't receive an additional 20 of the finished parts - as you only received 80 not 100. Close the purchase order off to close off the balance of 20 remaining.
Thanks

Serial numbers for subcontracting process

Hello Experts,
We are using SAP ECC 6.0 and trying to implement the subcontracting process with serial numbers. This scenario is focused on those materials that we need to keep track on how many times it has gone to repair (for example, a motor) by specific item. Suppose there's a material called "Material A". However, there are MANY "Motor A"'s, and thus, the need for serial number to keep track on the number of repairs each one has had.
So, having said that, the scenario is working so far. However, the user CAN'T type in the serial number of the material at the REQUISITION LEVEL. This can be done at the PO level and at the goods receipt level.
This brings a problem since the Purchasing dept. doesn't know the serial number. This information is known by the user, but there's "serial number" functionality in the requisition. Is there a configuration for this? Could it be possible for the serial number to be in the requisition and then inherit it to the PO?
We want this in order to automate the process.
The configuration we made was in the "Plant Maintenance and Customer Service" section, using procedures MMSL "Maintain goods receipt and issue doc." and POSL "Serial numbers in purchase orders". There's no procedure for purchase requisitions. If this can be also done from a Work Order, that will be just fine.
Let me know if it is possible or if you have any idea on how to do this.
Regards,
Gilberto Gallardo.

Hi,
Serial no can be used for the following business transactions.
1. Goods Receipt/Goods isssue and other inventory postings.
2.sales orders and delivery notes
3.maintenance orders
4.production orders.
Settings:
1. create a serial number profile in customising.
2. Assign the serial number profile in the material master record in work
scheduling view for fert and raw material in plant data / stor2 view..
Business procedures may be assigned in configuration to a serial number profile.
The assignment to the serial number profile determines if serial numbers are required , can be assigned, must be assigned,are assigned automatically
MMSL : Goods issue , receipts,stockj transfers,stock transport orders
Thanks
nandha

Third Party Subcontracting Process doubt

Hello all Gurus,
I have one doubt regarding the third party subcontracting process. I have created a PO with delivery address as that of SC vendor.
Now how to do the GR for components if the SC vendor lets me know that he has received the materials from the 3rd party vendor??
Can someone tell me the process after a PO is created for this scenario???
Thanks and Regards,
Umakanth.

Hi,
As I perceive you are speaking about the provision of subcontracting components from one of your vendor directly to another one,
In this case you did well if you wrote the vendorID in the suitable field on 'Delivery address' tab of your PO. 'SC Vendor' thickbox should be also checked. This is not the subcontracting PO itself, it is only a PO to procure the components for subcontracting - your SC vendor receive the components directly. That's why there's no point in speaking about 'L' item category.
After getting information from your SC vendor about the arrival of the goods (components) the only thing you have to do is to do a GR against your PO. The goods will get to your SC vendor's special stock via mvt 101 + 'O'.
That's all.
BR
Csaba

G/L accounts updation in subcontracting process

Hi,
i request you provide details of G/L accounts while ;1) updation while we supply materials to vendor
2) while we recieve the finshed product.3) And while settlement to vendor.
Thanks & Regards,
Ramesh kumar.

Hi,
If Material has Price Control as "V" (MAP)
(BSX) Stock A/c of Assembly - Dr
(BSV) Change in Subcon Stock - Cr
(FRL) Subcontracting Charges - Dr
(WRX) GR/IR Clearing A/c - Cr
(BSX) Stock A/c of Components - Cr
(GBB-VBO) Consumption A/c of Components - Dr
If Material has Price Control as "S" (Std. Price)
If Material is having Price Control as "S" then Price Difference A/c will also in picture.
This depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt
Price Differences for Subcontract Orders at Goods Receipt
In this step, you configure for each valuation area whether price differences are generated for a Subcontract order at the time of a goods receipt if the manufactured material is managed at standard price and the standard price varies from the receipt value (externally performed service + value of components + delivery costs).
Example
Finished product: $400 (value at standard price)
Subcontract order:
o Ext. service : $250
o Components : $100
Posting schema without price differences:
Stock account FERT : 400 +
Stock change : 400 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Compon. stock account : 100 -
Consumption account : 100 +
Posting schema with price differences:
Stock account FERT : 400 +
Stock change : 350 -
Price difference : 50 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Compon. stock account : 100 -
Consumption account : 100 +
And cost center is mandatory for subcontracting process
the accounts for the BSX FRL and GBB-VOB needs the cost elements
Sometimes if you have freight the key FRN also gets used.
Edited by: venkatesh kumar on May 11, 2010 12:46 PM

Excise treatment during subcontracting process with excise duty

Dear all,
Iam aware of the subcontracting process STEPS, but my query is while dealing with Excise in Subcontracting process, will the Excise duties captured in J1IS(create outgoing excise invoice) be RECONCILED with excise duties captured in J1IEX(subcontractor's excise invoice). As per my scenario both the duties are different unlike reconciliation process in the process without excise duty. My questions are
1.Do both excise duties during j1is and j1iex should be same or can it be different (since in j1is we capture Duties on raw material's assesable value where as in j1iex we capture duties semi finished goods given by sub contractor.)
2.Kindly eloborate treatment of excise duties captured in these steps.
Revert if you didnt understand this scenarion.
Regards,
Sravanthi.Y

Hi,
57fc challan will be issued when we send raw materials to subcontractors WITHOUT EXISE DUTY.Hence not relevant in my case. But my case is WITH excise duty.we send subcontractor the excise invoice by using j1is. later he will process these raw materials and will give back the semi finished goods along with excise invoice(which we will capture n post using j1iex). so my question will excise duties differ in j1is(excise invoice TO subcontractor) and in j1iex(excise duty FROM subcontractor)?

Movement Type for Expired Materials

Hi Qm Gurus,
I have one scenario, my client wants that raw materials which have reached their expiration dates must be posted to a virtual stock type, for instance, expired, however, they should not be used for MRP and production order, because their confirmation that they shall be posted to blocked must be done first before they should automatically be blocked. How shall we make the configuration for this one??Expired materials must not be posted to blocked not until they shall be confirmed by the client. Thanks
Regards,
Matildo, edsel F
QM Consultant

Hi,
There is standard SAP functionality available for such cases,
You can use Transection code QA07 - Dead Line Monitoring of Batches
This transection works for 2 different cases.
1) In case of Retesting/Next Inspection or Recurring Inspection
2) Batch Status change when expiration date reached.
You can run this transection manually or by seting back ground job.For Back ground job You can use Transection code QA05.
Now After set this Back Ground job if you don't want to include such kind of stock (Resticted use / Quality inspection stock) during MRP run you have to set your Checking rule (Transection code OPJJ) acordingly.
For this you have to remove tick from Include Restricted stock, so system will ignore this stock during both MRP and Availibility check during order processing.
Hope it will help.
Regards,
Dhaval
Edited by: Dhaval Choksi on Jul 8, 2008 3:37 PM
Edited by: Dhaval Choksi on Jul 8, 2008 3:43 PM

Returns in subcontracting process

In subcontracting Process once materials is delivered by vendor and if the material has to be sent back to vendor whatis the Procedure? If the company is in bangalore and vendor in Mumbai what are the documents needed for return?

Hi,
If material is excise and Returnable(by vendor) plz follow this procedure..
a) Issue Mb1B with 541 mov type and create Challan in J1if01make 541 mov type doc as Delivery note Doc
If material is excise and Non-Returnable(by vendor) plz follow this procedure..
b) create return PO(ME21N) and do GR 161 mov type..
regards,
Priya

Subcontract Process in MM

Hi All,
I have to map the following scenario in SAP.
There are three materials A, B & C.
We send material B to the vendor.
Vendor purchases material C.
Vendor adds material B to material C and sends us material A.
We pay vendor for material C and labour charges.
Now I want to achieve the above process by using the subcontracting process in SAP. I maintained a BOM for material A with material B as the component.Price of material A in PO = service charges for producing A + cost of matrl B. I could run the process this way.
But my client wants to have material C also in the BOM (even though they do not purchase the same).They say they want it for costing of material A. So material C must be in the BOM with matrl B.
So is it possible to have two seperate BOM's for material A , one for costing(matrl B + matrl C) and the other for using in the subcontract process (only matrl B)? And if we can have it that way how do I ensure that the BOM which contains only Matrl B gets selected when I create a subcontract PO?
Any help would be really appreciated.
Regards,
V S

Hi:
It is possible to have the two separate BOM one is costing BOM and other is your regular production BOM.
However while creating these two BOM select BOM Usage as 6 for costing BOM and 1 for production BOM so in subcontract PO system always select production BOM which must be having only one child component which you wanted to issue.
And ask you controlling to use costing BOM for the costing purposes which would have two child components.In controlling there is a provision to proritise the BOM usage.
Hope this would helps you.
Cheers
Rahul.
Awards plz. if helpful.

Subcontracting Process

Hi
If any one can explain in detail about scenario material vendor posting directly to subcontracting vendor
It 's very urgent
Thanks & Regards,
Sadhish

Hi Sadhish,
Sub Contracting Cycle
(1) You have a material that can be procured externally, and you have maintained BOM with components. Any waste generated and received during subcontracting process can be maintained as component with negative quantity.
(2) You create a subcontracting PO (PO with Item Category L). You can also maintain Purchase Info Record for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components for SC PO. 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"
(4) You receive 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:
DR FG Stock/ SC By-Product Stock
CR Change in Stock (FG/ SC By-Product )
(for finished goods received)
DR Subcontracting Charges
CR GR/IR Clg
(for moneys payable to Subcontractor)
DR Consumption (Components)
CR Change in Stock (FG/ SC By-Product )
(material provided to Vendor is now charged to expense)
(5) You do the IV for SC Invoice, and the process is complete.
Process of Subcontract in MM
Sub-contract business process:
You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .
Vendor shall process the item / use the item provided & supply the final item.
SAP process:
1.Create the finished goods material code.
2.Maintain the BOM for the material.
3.Create PO with item category as "L" .
4.Issue material to vendor with movement type 541
5.Receive the material against the PO with movement type 101.
6.MIRO to account for vendor's invoice for the service charge& material used by him.
Can anybody tell me how a process has to be given to subcontracting?
Suppose, I have 3 operations 1)weaving 2)dyeing 3)cutting & packing
if no 2 process (i.e Dyeing) has to be given to subcontracting, what process should i follow ?
The following process to be followed for subcontracting.
1. Item code(material master) to be created at the stage of before dyeing.
2. Item code(material master) to be created after Dyeing as subcontracted item.(F30)
3. Bill of material to becreated for the material(2) calling for material(1)
4. Inforecord and source list to be created for material(2) with the corresponding vendor
5. PO to be released for material (2)
6.Along with PO the material(1) to be issued to vendor
7.On receipt of material when GR is made the stock with vendor will get updated.
How to Create a Subcontract Order?
To create a subcontract order, proceed as follows:
Enter the material you want to order and the item category for subcontracting (L) in the order item.
Press ENTER to display the screen for component processing.
Enter the components that the vendor requires to manufacture the product.
Please note:
You do not need to enter the date required for the components. This date is proposed by the system when you press ENTER.
It is calculated as follows:
Delivery date of the item - Planned delivery time
If you do not want the quantity of the components to be changed if the order quantity of the end product is altered, set the indicator Fixed quantity (column F).
You can determine whether the components are available on the date required by selecting Edit -> Availability check.
If you entered a bill of material as the material in the subcontract order, the components are created automatically.
If you want to determine the components in the bill of material at a later date (for example, if the bill of material is subsequently changed), choose Item -> Component -> New BOM explosion. The existing components are deleted and redetermined in the bill of material.
Save the purchase order.
When you print the purchase order, the components are printed per order item
Subcontracting - Key Points
Special Procurement Process.
Item category: L
Order type: NB
In info record vendor should be maintained as subcontractor.
Vendor (Subcontractor) receives the components used to manufacture a finished product directly from your company or through third party.
Your company should place a purchase order for the finished product. In this manually you can enter the required individual components or it can be determined via the explosion of BOM (if exists).
Stock check at vendor level: ME2O
Company stock check: MMBE
GR for individual components through movement type: 501 or 561 (if with out PO or without reference).
GI to subcontracting vendor: through movement type 541.
GR from sub contracting vendor: through movement type: 101
Movement type 543 is displayed to cancel the material cost account.
If the subcontracting order has to be generated through materials planning,the special procurement key has to be set in MRP 2 screen.
- To create the Subcon Info Record : Tcode ME11 - Info Category - Click Subcontracting
- To create Material BOM : Tcode CS01
- With the Info and Material Setup, you can then create the Purchase Order in Tcode ME21N
Hope it wud have answered ur question
Reward if useful
Aasif

Subcontracting process to multiple vendors

Dear friends,
We have got the subcontracting process as below.
1) Material is given to subcontracting vendor for making finished product.This job consists of 5 operations.
2) After making 1 operation at first vendor ,for remaining operations,partly processed material is given to second vendor from outside vendor to vendor.
3) After 2 nd operation is completed,remaining 3,4,5 operations,material is given to 3rd subcontracting vendor.
Then material is recieved to our place.
Material is moved from vendor to vendor without coming to our location.At the end of the process only finished prioduct will come to our location.
How to handle this scenario if finished product is completed within 180 days
---How to handle this scenario if finished product is completed more than 180 days.
--One condition is that it is not possible to take GR every time to our location and issue to next vendor because materials handling is very difficult every time.
Please suggest.
regards,
Canand

Hi Anand,
1. Create a PO to 1st vendor.
2. Maintain the required entries.
3. Go to delivery address tab tick SC Vendor
4. Maintain 2nd vendor here.
It means that after finishing first operation 1st vendor sends a matl. to 2nd vendor.
If u post migo for 1st PO(i.e. for 1st PO vendor) system says that matl is with 2nd vendor.
So u need not to send the matl to 2nd vendor.
Similarly, do it for other vendors also.
Here important thing is U have to send a PO to respective vendors for respective operations.
For the last vendor who gives u the finished product dont tick SC vendor to him. Maintain ue company delivery address.
and "answer for ur 180 days"
Who ever with the material once the matl went from ur company premices, from that day ur 180 days starts.
If it comes within 180 days no tax to pay on that material, other wise u have to pay tax.
further u need any clarification, do reply
Reward if useful
Regards
Viru

Subcontracting Process in SAP

Hi Friends,
Please help me to make me understand of subcontracting process for Automotives.
FYI our Plant is a 3rd party warehouse system. Our requirement is how (which triggers) the Delivery/Delivery Due list shipment of the components of the Subcontracting Assembly from Plant to Subcontractor can be done in SAP.
How the Planning of the components of Subcontracting Assembly can be done with help of MRP at Subcontractor level. Also we want to keep the safety stock at all the locations including subcontractor for components.
Any suggestions would be helpful..
Thanks and Regards,
Nabin

Dear,
There are two main options, I have not clearly understood your requirement, however please go through my explanantion, may be helpful
The procedure you are talking about in you serial no 1 to 4 is the <b>material subcontract...</b>the procedure is as below
Let us say you have a final product C.
C needs B
B need s A
A needs raw material X and Y
In the above case
C and B is having routing
In A material master MRP2 view....enter special procurement key as subcontracting(in STD sap the key is 30), procurement key = F
A has a BOM having items X and Y. No routing for A
When you run MRP
System will create Pl order for C and B, SUBCONTACTING PR to A and PR to x and Y
After you procure X and Y, You can convert PR of A to PO.
Then you will send the material i.e. issue the material to subcontractor through 541 and special stock O.
This stock you case see in MMBE with special stock O.
Once you receive the material A, when you do GR, the materials are issued to A and A will be inventarised with mov type 101.
The cost of serve and the cost of raw material is booked to cost center entered in subcontracting PO.
The cost of this will be settled to production order later.

How to mnage Subcontract Process in b1

hi,
any body can explain how to maintain the Subcontract process(Job work) in Sap b1 2005. .
plz help me with possibilities.
Regards,
Nagababu

Unless, you explain the requirement and business process in a little more detail it will be hard to suggest something.
When you talk about Job Work, many factors come into play. Whether it involved materials and labor or just services, etc.
There is an Addon for Job costing from Enprise. Link: http://www.enprise.com/
Suda

SubContract Process with Excise Flow

Hello All,
Can anyone please explain me in Detail Subcontract Process with Excise flow considering these...
1. Subcontracting without payment of Excise duty
2. Subcontracting under full payment of Excise duty
and if scrap is to generate under process. So how to maintain that in PO. and Later how to reconcile that in Excise flow..
I will be very thankful if anyone help me ...
Abhinay....

hi,
SUBCONTRACTING:
To create Subcontracting challan:
J1IF01 - Creating sub contracting Chelan
J1IFQ - Reconciliation for Chelan
J1IF13 - after receiving all items
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 auto consumption of components with 543 movement}
Reconciliation of Subcontracting Challan (J1IFQ)
Completion of Subcontracting Challan (J1IF13)
Generation of Annexure IV (J1IFR)
Note: - In this case, you have to maintain the Assessable Value for the Components to be supplied to Vendor in J1ID and also Excise Tax rates for the Chapter IDs linked with these components. So during J1IF01, system will take the Assessable Value as Excise base Value and calculates the Excise Duties by taking Excise Tax Rates.
Subcontracting under Full Payment of Duty
Creation of Subcontracting PO (ME21N)
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.
Master Data
MM01- Material Masters for Components and FG
XK01 - Vendor Master (Subcontractor)
CS01 - BOM for FG
ME11 - Purchase Inforecord for Subcontracting
Regards
Priyanka.P

Subcontracting process to scrap expired materials??

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