Jobwork sales Order in SD

[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 Sriram,

We have exactly the same requirement as yours for Job Work.

We receive major Raw material from our customer and then this Raw material is converted to finished goods. However we use some of our mateial which are used for this conversion process.

We also produce our own finished goods alongwith we want to produce the same FG for as Jobwork as we have unutilised production capacity. Currently we use receipie for processing Production order by which the raw materials automatically get consumed.

Here we need to send the Jobwork FG to again the customer and only Charge Service Charges for this conversion.

Hope by this time you would have configured this Jobwork process.

Please can you share the detailed whole configuartion with me, it would be of very great help.

With Regards,

R.Sundaresan

[former_member188076]

Hi

Check this link:- []

And you may search the Forum with term "subcontracting" you will get lots of post.

Regards

Amitesh Anand

[Former Member]

Hi,

I saw many threads explaining Sub Contracting with respect to MM. I want same scenario with respect to SD as we are providing SUB CONTRACTING to others ( Customers), For them we are Vendors and for Us they are Customers. We do Job Work and bill with service Tax. So it is totally sales scenario. We receive material from customer and we do processing in Machine shop, Paint shop some time involves foundry. The process starts with Quotation for Subcontracting, Follow on Quotation, then Customer sends Purchase/Job Work Order with or without Advance and we start processing as per order, Once completed Customer inspection will happen and processed material will be dispatched to customer as per terms specified order. A service bill will be sent to customer and payment will be made as per terms agreed by customer. While returning the processed material we need to return the scrap also. Kindly explain the above process in SAP

Thanks in Advance

Edited by: Sriramsap on Nov 25, 2009 7:13 AM

[reazuddin_md]

Here,

Need clarification on:

- While receiving goods from Customers, are you booking the stock into Inventory? r not?

- Whiel issuing goods to Customers after jobwork, what would be inventory cost , whether the inventory updated with processing cost or Cost of inward material + processing cost?

Provide the complete scenario,

when receiving goods ( interms of stock & accounts) & when issuing goods to Customer.

Try following:

- Create Free goods PO(ME21N), Inward the Material(MIGO)- No Invoice Verification,

Then Jobwork takes place, which will be captured thr standard Production cycle ( Production Order - Issue to Inventory)- then inventory will updates with the processing cost.

Then you can issue the goods in standard sales process- Sales Order - Delivery -PGI ( processing cost will be booked as COGS) - Invoice.

Test & revert.

[Former Member]

Hi,

While receiving material from customer we can use as non valuated material and kept in a separate storage location and used for processing, After processing it will be dispatched along with scrap if any.

My question is how to initiate the process, whether to start with sales order or goods receipt. if with sales order how to receive goods with respect to this order. If to start with goods receipt how to link with the sales order.

then how to process the delivery? because there is a material to be dispatched.

Can we receive material through Return processing ...

Can somebody explain this scenario

Thanks in advance

[reazuddin_md]

Try in another way like:-

Create Sales order - which Creates PR automatically - Convert this PR into PO with free goods indicator ( You can use of Non Valuated Material type as well but when issuing goods processing cost will not be captured) - perform MIGO.

then create delivery ( wrt: Sales order) - PGI - Invoice.

In MM, Customizing has to be done to convert the PR into PO automatically. Make use of "Auto PO" Option.

Customer should be created as Vendor & assign in respective Vendor field_ Customer Master Record.

Similar to IPO scenario-

Customizing checks:-

Sales Order Item Category - with special stock indicator

Schedule line category - with relevant PR doc type , item cat & account assignment with 601 mov type.

Test - Hope it should work.