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sub-contracting with scarp ..?

Former Member
0 Kudos

hi all

Can anybody explain me about the sub-contracting process with scrap .

My requirement is i m some materials to vendor for job work.

At initial stage i dnt know how much scarp wil be return back.

So please explain me how this can carried out in SAP.

Thanks

sap-mm

Accepted Solutions (1)

Accepted Solutions (1)

pankaj_singh9
Active Contributor
0 Kudos

Hi,

Refer link;

[Subcontracting Process w/o Payment of Excise Duty|http://help.sap.com/bestpractices/BBLibrary/Documentation/J85_BPP_V2_EN_IN.doc]

Subcontracting Process

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)

Master Data

- MM01- Material Masters for Components and FG

- XK01 - Vendor Master (Subcontractor)

- CS01 - BOM for FG

- ME11 - Purchase Inforecord for Subcontracting

Configuration: -

- SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Subcontracting Attributes

Here maintain following;

Excise Group         XX
Excise TT            57FC
Subtransaction Type  01
Subtran Type Text   57FC CHALLAN
Subc. Period        180
Rate-subcontracting
Mvt Grp Issues      0001
Mvt Grp Receipt     0002
Filter Non exise
EI Items            10
No. range no.       01
Ass. Val. /Exc Inv
Subcon Output Type  J1IF

- SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups

Here maintain following

MVT. Grp. MvT S
0001      101 O
0001      541 O
0002      542
0002      542 O
0002      543 O

- J1I9 - maintain No range for object "J_1I57FC" for series group

Former Member
0 Kudos

hi Mr.pankaj

Can u explain me about , how to receive the scarp after sub-contracting process

Thanks

sap-mm

former_member581212
Active Contributor
0 Kudos

hi,

check the link:

You can also search on SDN for more threads

Regards

Priyanka.P

pankaj_singh9
Active Contributor
0 Kudos

Hi,

If you are getting scrap from vendor for every GR then proceed as following;

1. MM01 - Create Scrap Material

2. CS01 - Include this material with approximate -ve qty. if you are not aware of exact scrap qty.

3. MIGO - During GR, stock of scrap will get received in Subcontracting Stock of Vendor with movement type 545 O (During GR, change the qty of scrap defaulted as per BOM to actual qty received from Vendor)

4. MB1B - Transfer stock of scrap from subcontractor's stock to own using movement type 542.

If Scrap is not as per every GR then;

1. MIGO - Goods Receipt > Others (Receive using movement type 552 O)

2. MB1B - Transfer stock of scrap from subcontractor's stock to own using movement type 542.

Former Member
0 Kudos

Hi to all,

I am getting the finished product from the subcontractor,

After checking out, i have return back to subcontractor for partial quantities, what are all the process to be done?

Thanks

K.Bhuvaeswaran

Answers (1)

Answers (1)

Former Member
0 Kudos

HI,

When u declare the components in the components tab of the PO in the Item details, also mention the total scrap Qty that is likely to be produced. It shall be -ve. So when u send the goods for subcontracting by 541 mvt type it takes in to consideration the scrap also and the same has to brought back to our premises later by doing GR.

You can also define the BOM accordingly and define the scrap in the same so when the subcontracting PO is raised the BOM shall take care of the same

Hope it helps.

Regards,

Prasanna

Award pls if helpful