Job work in SD subcontracting.

[Former Member]

Hi,

I have a scenario as described below.

Pls give your inputs to map this in sap with relation to sales & distribution.

there are 2 plants, X & Y. X plant issues some material MAT1 to Y plant to do some processing and receives back the processed material MAT1. Plant Y charge only for the processing.

Thankx in advance.

Anup

[Former Member]

Answered

[Former Member]

Hi Anupam,

As per my thinking you can do this :

Assuming X and Y are in same company code......

Transfer Stock from X to Y, Y will do processing.....

Now transfer material again from Y to X.

If these are in different company code, then the solution is Subcontracting,,,,,,,,,,,, Where Plant Y will act as vendor.

thanks,

Raja

[Former Member]

Hi,

Yes. both plants belong to same company code. but we have to charge plant X for the processing work.

Can u please explain the same as how this can be mapped with subcontracting? and what will be the role of SD in that?.

Thanx,

Anup

[Lakshmipathi]

You can try the following

Manufacturing Plant

1) Create a non valuated material code, say M1 with material type UNBW

2) Deliver the material to Servicing Plant against a PO raised from Servicing Plant

3) Do MIGO for inwarding the material from servicing plant

4) Do other operations if need be

5) Make sales through PGI and Billing

Servicing Plant

1) Extend the M1material in receiving plant with material type UNBW.

2) While doing MIGO, only stock quantity getting inwarded without any values

3) Create the BOM following regular process for the above, keeping M1 material as the 1st component

4) Confirm the service by one operation with material code M1A (material type HALB) through MFBF (Item Category Group NORM /

5) While doing PGI, stock at servicing plant will get reduced.

6) HALB being sold to manufacturing plant with no ED, Cess, Tax etc.

7) Raise an invoice (charging ONLY for service charges)

8) TDS not applicable due to plant to plant transaction

thanks

G. Lakshmipathi

[Former Member]

Hi,

Thanks for the detail explanation.

will try and revert.

with reference to your 2nd point for Service plant, with reference to which document MIGO has to be done? and what will be the movement type. pls can u explain in little detail.

Anup.

Edited by: anupam sharma on Jun 24, 2009 11:30 AM

[Former Member]

Dear Sir,

We are doing Job Work to Customers, in this case Customer is sending their material for job work, we undertake job work and finish whatever they asked and send the material back to them along with the scrap.

How do we map this scenario in SAP

ur explanation is for within two plants of a company

how do we extend to customer

Kindly explain

Thanks in advance

[Former Member]

HI

Create a Purchase order inplant Y and in plant X create STO and send the material to plant Y.

In Plant Y create a job work sales order and delivery and invoice for job work charges

regards

[Former Member]

Hi,

Thanks for the reply.

Can u pls explain in details as I have some doubts.

How the material will be received in plant Y from plant X (with which document reference)?.

can we create a production order for processing with reference to sales order?

what about the valuation of material in plant Y?

How the processing charges can be invoiced to plant X?.

Please explain step by step, if possible.

Thanx,

Anup