subcontracting and jobwork

[Former Member]

hi friends..

sorry to ask u all this silly question, but i feel that there is some difference between subcontracting and jobwork...

so can any one please tell me if there is difference between subcontracting and jobwork..

thanks in advance...

[Former Member]

hi.

A company go for subcontracting only when the management decides to do the manufacturing operations outside the factory.

In subcontracting materials are sent to the subcontractor for reprocessing or rework or jobwork.

example. u send some matrial to subcontractor and he does the turning poeration on ur matrial as per ur reuirement and send it back to u. Here he has not used his own material .

Regards

Sandeep

[Former Member]

hi.

A company go for subcontracting only when the management decides to do the manufacturing operations outside the factory.

In subcontracting materials are sent to the subcontractor for reprocessing or rework or jobwork.

example. u send some matrial to subcontractor and he does the turning poeration on ur matrial as per ur reuirement and send it back to u. Here he has not used his own material .

Regards

Sandeep

[kunal_ingale]

hi

subcontracting and jobwork are opposite processes in SAP

subcontracting

ur giving work to a vendor for processing

u will be the client here

jobwork

ur taking work for processing

u will be subcontractor here

regards

kunal

[deiva]

Hai,

In domain language, both Subcontracting & Job work are same.But in SAP Standard system, this is different from the client place.

Subcontracting:

This is the process in which the client will provide the components required for the finished product to the vendor. The end product from the subcontractor is a finished or semifinshed product.This is the own valuated special stock.

Job work :

This is the process in which the client will do the subcontracting process for the customer. The customer will provide the components to get the finished product. This is not own stock. This should be treated as a non valuated stock in the System.

[former_member335885]

Hi,

BOTH ARE THE SAME.

Thanks & regards,

Kiran