How to do the entair cycle of subcontracting in SAP MM

[Former Member]

Any one can explain me how the Subcontracting cycle is done. Any one can send me the hole subcontracting process docs with a real time application.

[kunal_ingale]

hi

the code is ME2O and not ME20

Process Flow

This scenario consists of the following steps on goods delivery:

Purchase order creation based on a scheduled purchase requisition created by last MRP run

Optional: manual purchase order creation

Purchase order approval (if required)

Components of the Material sent to the subcontractor through a Transfer Posting

Creation of Subcontracting Challan

This scenario consists of the following steps on goods receipt:

Goods receipt for purchase order delivered by subcontractor

Component reservations and consumption of component quantities as provision of material

Reconciliation of Challan

Completion of Challan

Invoice receipt by line item

Invoice verification and validation of tax expenses

Outgoing payment

Key Points

BoM explosion triggers follow-on functions such as delivery to subcontractor

Automatic posting of value flow

Automatic posting of stocks into corresponding stock types

Subcontracting info record shows added value

Refer this link

http://help.sap.com/bp_blv1600/V5600/BBLibrary/HTML/138_EN_IN.htm

Subcontracting Under Full Payment of Duty

Purpose

This procedure illustrates how you use the system to send materials to your subcontractors for processing using normal excise invoices.

Prerequisites

You have created a condition type for manually entering excise duty in the subcontract order. In the standard system, you can use condition type JEXC, maintain in pricing procedure.

Process Flow...

1. Create a

tract order for the subcontractoru2019s services.Enter excise manually in the condition type JEXC & take a tax code for VAT calculation.

2. Do the transfer posting for the materials that you want to send to the subcontractor.

3. Create an outgoing excise invoice for the materials by J1IS & J1IV.

4. You send the materials to the subcontractor, together with the excise invoice.

5. The subcontractor processes the materials and returns them to you, together with another excise invoice.

6. Captures the subcontractoru2019s excise invoice, using the purchase order as the reference document.

7. Do the goods receipt & refer excise invoice in excsie tab.

8. Posts excise invoice.

9. The accounts payable clerk posts the subcontractoru2019s invoice.

regards

kunal

award if helpful

[Former Member]

Hi,

TRy in the link given below

help.sap.com

Reg,

Deepak.