Sale of suncontracting service : Role of MM
My client provides subcontracting service. For this purpose the customer sends his raw material to clients premisis. Client does all the manufacturing & sends finished goods to customer with service charges for processing.
My question is
1 .Will I have to create a Raw material code in clients SAP sys for the goods that customer sends.
2. If yes , what abt accounting & inventory implications.
3.There will be no PO , so how will i recieve the material.
4.What if the goods are excisable as per excise?
Pls throw some light
Thnx in advance
Kunal Ingale replied
the scenario ur talking of is the jobwork scenario ,
the steps will be as follows
1. Define your customer materials (both component and finished product) as non valuated material, because these materials not effecting the our inventory.
2. create Bom for finished product.
3. Create sales order for service charges with reference to your customer PO.
4. Receive the component from your customer through 501 E (with out po sales order specific).
5. Create Production order with reference to sales order through MRP or manual.
6. confirm the production order and receive the
7. Delivery to customer as in normal sales process.
8. Then create performa invoice or billing to your customer.
Please maintain the customer excise challanas manually or you can develop z development for tracking purpose
1 .Will I have to create a Raw material code in clients SAP sys for the goods that customer sends. yes
2. If yes , what abt accounting & inventory implications. only quantity update
3.There will be no PO , so how will i recieve the material. using 511 E against sales order
4.What if the goods are excisable as per excise? maintain it using Z developement for challan or annexrure