subcontract issue

[Former Member]

Dear Experts,

I want your help in followinig issue.

One subcontractor is doing welding work on the job inside the factory . Company provides the welding rods to the subcontractor.

Subcontractor submits the invoice for the service provided by him. Company do the payment by deducting the value of weding rods provided to the subcontractor.

Please telll me how to configure this.

Regards.

Sandeep

[Former Member · Accepted solution]

Hi,

Dont use Sub-Contract route, you may use the Service order for such job works.

Now for the Welding rods you provide, maintain an additional line for the same in the Service order with the "Returns" item activated,

When the material is provided to the Vendor, you do a GR for the welding rods, which will trigger 161 movement type and subsequently move out of your stock,

When the service is complete, do the Service entry sheet and MIRO for both invoice and credit memo refering the same PO.

This will give you the traceablity of inventory of Welding rods too.

Regards

Merwyn

[deiva]

You can map this scenario by

1.Create the service purchase for services to be performed.This has to be entered in the first line item with item category D & acct assignment category K.

2.In the second line item, enter the material welding rod to be given to vendor & mark the return indicator.

3.Create the service entry sheet for 1st line item.

4.Do the GR for 2nd line item. Here the system will pick the 161 mvt type automatically.\

4.Do the LIV for the 1st item to credit the vendor.

6.Create the credit memo for the 2nd item to reduce the vendor liability.

[kunal_ingale]

hi

u can do this scenario in both ways as subcontracting or service

if u want to use as subcontracting then use following link

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

or u can use service also

http://help.sap.com/bp_blv1600/V5600/BBLibrary/HTML/209_EN_IN.htm

i will prefer service for ur scenario as u can just have to pay for the labour charges

create po for service using acct assignment K and item cat D

then do the normal scenario as per above link

and for rods used u can show it as issued to cost center

hope it clears

regards

kunal

[former_member335885]

Hi,

Create a Service PO and in any one of the condition type (Surcharge condition type) enter the amount spent on the welding rods. now this amount will be deducted from the service total amount. Then prepare the SES and then invoice.

Thanks & Regards,

Kiran