Job Work Process

[Former Member]

Hi

I need a solution for the job work process the company undertakes. The process is as follows:

a. Goods receipt from customer

b. The customer goods is sub-contracted to another vendor for a process

c. The goods are received and subsequent process is done within the company.

Currently, the process is set up as:

a. The process has been set up as a MTO process.

b. The sale order item category holds the item type as Ä value item.

The system works fine if manufacturing is only done on the customer items and single shipment is done.

We need to address the following scenario:

a. Unable to raise a sub-contracting purchase order as the system says it cannot post to the GL account and the system says it is a control account. SAP in its best practice suggests that direct posting to consumption accounts should not be enabled.

b. The other aspect that happens is that multiple deliveries against the sales order is not possible. In the first reference itself, the delivery status in the sale order gets set to complete (even if PGI is not done).

How can this problem be addressed or how is this handled in the industry.

While doing sub-contracting or internal production, the cost should not flow to the material. In the above scenario all costs including sub-contracting charges, production activity charges get booked to the sales order and not to be material.

FYI, customer material is UNBW and all other stages is HALB.

Regards

Srinivas

[Former Member · Accepted solution]

The material received from customer (UNBW) is sent to Vendor. After sub-contracting from Vendor you are receiving FG (which should be UNBW). Sub-contracting vendor is raising the invoice on you for the charges. Why do you want to have the FG as any other material type. I feel it should be UNBW. You will raise the invoice on your customer for the job work charges.

In this process where do you see the problem.

Regards,

GSL.

[Former Member · Accepted solution]

Hi GSL,

When you have UNBW it is not necessary to input a valuation class, which is what we were having.

When a valuation class is not there, when you send item for sub-contracting the system cannot default an account assignment, without which PO raising is not possible.

We have solved this the following way:

a. Created another material type by copying UNBW. All materials in processing are of this type.

b. A valuation class has been set for the material.

c. In material processing the account assignment category will mark to a special stock.

d. Production confirmation and shipment is done subsequently.

Thanks for your inputs.

Regards

Srinivas

[Former Member]

Solution is proposed in my last post of this question.

Srinivas

[Former Member]

Hi,

I think you need to change the process. Use UNBW at all stages of material i.e. from RM to FG. Posting related problems will be resolved.

Regards,

GSL.

[Former Member]

Hi

The system will need GL accounts for consumption and other determination. If at all stages UNBW is used, I think it will not meet SAP process requirements.

Regards

Srinivas