Sub-contract Process

[Former Member]

Hello All Guru

Can any please explain me subcontract procurement Process with considering the excise duty challan (t-code)

or

The basic process with considering the scrap of material where to maintain.

Please help me..

Edited by: Abhinay Waikar on Oct 7, 2008 5:12 AM

[former_member581212 · Accepted solution]

hi,

To create Subcontracting challan:

J1IF01 - Creating sub contracting Chelan

J1IFQ - Reconciliation for Chelan

J1IF13 - after receiving all items

Subcontracting without Payment of Duty

Creation of Subcontracting PO (ME21N)

Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)

Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)

Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and auto consumption of components with 543 movement}

Reconciliation of Subcontracting Challan (J1IFQ)

Completion of Subcontracting Challan (J1IF13)

Generation of Annexure IV (J1IFR)

Note: - In this case, you have to maintain the Assessable Value for the Components to be supplied to Vendor in J1ID and also Excise Tax rates for the Chapter IDs linked with these components. So during J1IF01, system will take the Assessable Value as Excise base Value and calculates the Excise Duties by taking Excise Tax Rates.

Subcontracting under Full Payment of Duty

Creation of Subcontracting PO (ME21N)

Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)

Creation of Outgoing Excise Invoice w.r.t. Transfer Posting Document (J1IS) - Used to send the components to Subcontractor's. Here 57F4 Challan is not created.

Hope it helps...

Regards

Priyanka.P

[Former Member · Accepted solution]

Hello,

Thnk you for reply,

when we reconcile that challan, there is differnece (scrap by machining or anything else). then that case what to do.

reply....

[former_member581212 · Accepted solution]

hi,

Scrap generated is assigned to a challan only if the percentage component scrap is specified in the bill of material for the parent material and this bill of material is assigned to the subcontracting purchase order.

Check the link to see the process:

http://help.sap.com/erp2005_ehp_03/helpdata/EN/95/3ca446110511d4b5ae006094b9ec21/frameset.htm

Hope it helps...

Regards

Priyanka.P