subcontracting PO

[Former Member]

Dear experts,

i have a problem that in sub-contracting PO we send some material to someone by 351 mvt type.

but when we receive it must be some diffrent material ,

then how can we receive the diffrent material against this sub-contracting PO.

please let me know in detail

[Former Member]

Hi,

In Subcontracting you will send the components ( RM ) to vendor, once these components is processed then you will recieve the Finished product from the vendor.

Create 1 material as Component ( which you send to vendor for processing)

Create 1 more material as Finished material ( which you recieve)

Create a Subcontracting order with Item category as " L" in ME21N

Send the component material to Vendor with respect to this subcon PO in MB1B with 541 mvt type.

Then vendor process the material, then do the Goods reciept in MIGO with 101 mvt type. So Finished product will inward and update the stock.

Component material will consume at vendor side .

For your information 351 is not used here it will be used for Stock transfer b/w Plant to Plant

rgds

GSC

[Former Member]

hi GSC,

first of all thanks for your valuable reply.

will u please tell me that how can i configure the subcontracting process.

please tell me in detail

Thanks

[kunal_ingale]

hi

scenario is as follows

• Purchase order creation based on a scheduled purchase requisition created by last MRP run ME21N

• Optional: manual purchase order creation

• Purchase order approval (if required) ME29N

• Components of the Material sent to the subcontractor through a Transfer Posting migo > 541

• Creation of Subcontracting Challan J1IF01

• Goods receipt for purchase order delivered by subcontractor MIGO

• Reconciliation of Challan J1IFQ

• Completion of Challan J1IF13

• Invoice verification and validation of tax expenses MIRO

• Outgoing payment

http://help.sap.com/bestpractices/BBLibrary/HTML/J75_ThirdPartyOrdProcwithSub_EN_KO.htm

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

subcontracting challan print

During creation of 57F4 Challan in J1IF01, in Basic Data Tab Page, scroll down the screen, you will get a check box of "Print immediately" just activate it before saving, it will print the Subcontracting challan once you save it. And to re-print the same go to J1IF11 and activate this indicator again and save.

Configuration Checks: -

SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Subcontracting Attributes > Check whether Subcon Output Type - J1IF is maintained here.

Also check in M706 - For Output Type - J1IF should be in place.

Note: - There is no need of maintaining condition record for output type J1IF in MN21

accounting

If Material has Price Control as "V" (MAP)

(BSX) Stock A/c of Assembly - Dr

(BSV) Change in Subcon Stock - Cr

(FRL) Subcontracting Charges - Dr

(WRX) GR/IR Clearing A/c - Cr

(BSX) Stock A/c of Components - Cr

(GBB-VBO) Consumption A/c of Components - Dr

If Material has Price Control as "S" (Std. Price)

If Material is having Price Control as "S" then Price Difference A/c will also in picture.

This depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt

Price Differences for Subcontract Orders at Goods Receipt

In this step, you configure for each valuation area whether price differences are generated for a Subcontract order at the time of a goods receipt if the manufactured material is managed at standard price and the standard price varies from the receipt value (externally performed service + value of components + delivery costs).

Example

Finished product: $400 (value at standard price)

Subcontract order:

o Ext. service : $250

o Components : $100

Posting schema without price differences:

Stock account FERT : 400 +

Stock change : 400 -

GR/IR clearing acct : 250 -

External service acct : 250 +

Compon. stock account : 100 -

Consumption account : 100 +

Posting schema with price differences:

Stock account FERT : 400 +

Stock change : 350 -

Price difference : 50 -

GR/IR clearing acct : 250 -

External service acct : 250 +

Compon. stock account : 100 -

Consumption account : 100 +

regards

kunal

Edited by: kunal ingale on Sep 24, 2008 10:47 AM

[Former Member]

Hi,

If you send the material using 351 mvt typ then it should be a STO w/o SD delivery not a subcon PO.

Reg,

Deepak.