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# SUBCONTRACTING SCENERIO ISSUE

HI,

TO ALL EXPERTS,

This is Manish.I am here with one subcontracting scenerio issue which as follw explain -

1)I have a material which is set for subcontracting.It have its own bom which includes raw material.

2)Suppose price of that semifin. Material is10 /- & ration with raw matrl. Is 3:2 I.e

3 kg of raw = 2kg finish & remain 1kg. is scrap.

3)So I made a BOM in which I maintained 3 kg raw & 1kg scrap (in minus I.e -1 kg.)

4)now I made P.O of semifin. Material in Kg. for jobwork to for XYZ vendor (I.e raw material will issue in kg & also return material I.e semif. Material is also in kg.)suppose raw I sending to vendor is of 200 kg. Means semifin. Will of 133.33kg & remain 66.67 kg. Will scrap.

5)It means if I will send 200 kg raw then it will returns as 133.33kg of semifinsh.

6)Then I made transfer posting to vendor by mb1b in which I send 200 kg of raw & create a challan.

7)Note : the material both at while sending & receiving it weighted on weighing bridge,as it contains small diff. In weight.(because even u purchase the ms plate12 mm for a weight of 706kg. Standard,U will never get as exact as 706 kg.,there will some diff. in weight may it will be more or less)

8)Then I got the material from vendor after some days as semifin. Material with bill.

9)But as I told earlier u will never get exact material as expect. i.e if send 200kg u will never get 133.33 kg semifin. There will be some difference of 5-10kg.

10) Suppose I received semifin. @ 125 kg instead of 133.33 kg as mentioned in bill.

11) So when I will take G.R it will deficit by 8.33 kg.

12)Now if I reconcile the challan it will give status as u201Cassignedu201D I.e partial reconcile means it shows there will 8.33kg. Of material still at vendor side,whereas practically it is completely delivered by vendor to us.

13)The scrap generated in material will at vendor, he will sale it & we will include the rate of it in the material price.

So finally as with reference with above scenario, is there is any chance to correct the system?

As I know if u want to make it complete u will have to take separate GR. of scrap &/or to to take GR of semi matrl. As complete receive even if there is diff in weight.

So is there any tolerances or process so we can put & make challan as complete reconcile?