Factory job work

[former_member418237]

Please advise the series of activities of jobwork under sap when we

receive material form customers for processing.

Under existing procedure we receive material for jobwork under the cover

of jobwork challan (Annexure-II).

After processing we return the material along with waste/scrat if any to

the customer along with the said challan(Annexure-II).

Challan(Annexure-II) is in two part, Part-I (to be filled by customer) &

Part-II(to be filled by us)

There is no payment of duty/Saletax/service tax is required under job

work. Only we are charging is convertion charges.

Please advise,

Edited by: Ramana Avudari on Dec 8, 2011 4:03 PM

[madlercm]

Hi,

It looks like sales process alone is not enough. You also have a production process there.

In general, the process should be like this:

Use materials that are non valuated, or use non valuated sales order stock.

Use MTO scenario with production (maybe even better - assemble to order).

Material flow:

Create sales order.

Receive components from customer in stock (customer stock). Create production order (with BOM or manually enter the components).

Consume comonents and receive FG in stock.

Deliver from stock. Bill customer.

I don't know about challan, since it is only in India.

[former_member418237]

Any one please advise me, how to create doc, bom,pric,procedure,

Raw Meterial taken from customer with free of cost, after job work finished goods deliver to customer, there is no taxes, just service cost we r taken from customer, for this how can i create sales cycle,Raw meterial is sub item, finished meterial is main itam, is it possible to create BOM, any one plz advise me.