Job Work Process.

[former_member418237]

Dear Friends,

Any one can provide Job work proces for beloow requirement.

Requirement: 1. We have received Raw Meterial from Contractor.

2.We have to do some job work and charge to Contractor.

       As per my idea we will do MIGO with movement type 501 for GR(Meterial Treated as non valuated).after that we have finished our work we have to do Sales order(Finished Goods), Delivery and Billing.

Any one can  explaine the total process for the same.

Regards.

Ramana.

[former_member418237 · Accepted solution]

Dear friends,

Thank You for immidiate responce, I have closed this issue with below Solution.

Solution:

1. 1. Pipes good
   receipt as non valuated material for quantity tracking purpose – MM
2. 2. cement, sand
   and Wire mesh etc is issued to for the job work from projects. Actual cost of
   material is booked in wbs’e.
3. 3.finished
   product is produces (separate material), consider it as a Non valuated material
   for quantity tracking purpose- project level.
4. 4.create sales
   order with non  valuated material with
   quantity ,saleable price & taxes etc.,
5. 5.create PGI
   without any accounting effect.
6. 6.create
   billing , when billing is created revenue will booked for particular project.

Regards,

Ramana.

[former_member636414]

Hi Every One,

I have similar scenario

In this job work order process we can complete with non valuated materials.

Now for the non validated material costing need to run. for this i have activated costing tab in material master. then when i am doing 501 E goods receipt we are getting error. No valuation class.

Regards,

Naresh Kumar

[Lakshmipathi]

I have one query here.

Are you going to charge only for the process what you are doing or will be treated as a normal sale.  If you charge only for the job work, then your pricing procedure should have a condition type for this apart from service tax as you may be aware, for job work, we should levy service tax.

G. Lakshmipathi

[former_member418237]

Dear Dinesh, Shivakumar,

Heare I am updating Total requirement, please provide total proces if it is possible.

1. We
   will receive  pipes from client (free of cost)
2. We
   will perform job work for pipes.
3. There
   are two activities in job work. Gunneting and Lining.
4. We
   will use our own materials like cement, sand and Wire mesh etc for the above
   activites
5. We
   will use one machine for the same. Diesel, spares will be required for the
   machine.
6. All
   the material costs including Diesel is our Scope and need to captured along
   with labour costs
7. After
   finishing job work, the final finished product will be delivered to the client
8. We
   will raise a bill for the above mentioned services.
9. At
   any given time, we should able to get the data like , the quantity of pipe
   received, job work performed and issued to client along with costing of our
   direct materials which involved.

        We need to capture entire process.

Thanks and Regards.

Ramana.

[Former Member]

Hi Ramana

I understood your process is Make to order so Whatever i said to you that is suitable for your requirement.

Normally, once the get the purchase order with 57f4 challan, production people prepare the split up  the operation cost plus profit.so you maintain the condition record for Pr00 condition type, automatically trigger in sale order.

----dinesh

[former_member184037]

Hello Ramana

I had a similar requirement...i think what you have mentioned is reverse sub-contracting whereby the client will receive material for processing and he will charge for services provided.

There are many posts with regards to this topic in the forum.

We can though deal with this process the following way by creating 2 orders - one for the material and excise conditions applicable to it and another order for charging the conversion charges.

Create  a pricing procedure with the excise conditions.

Create a Sales Order type using the free goods sales order type (FD) for reference and item category (KLN).

Create delivery for this which will not have any accounting document created for it.

Create a commercial invoice (no accounting document will be created)

Create Excise Invoice with reference to the commercial invoice.

Now Create the Service Order with the service condition types.

Create Commercial Invoice for the services with reference to the sales order.

I hope this helps.

Regards

Shiv

[Former Member]

Hi Ramana

try this process..

• Receive PO & 57 F4 Challan
• create sale order
• receive the raw material against 501/E
• Create the production order
• you issue the raw material using 261/E ( for inhouse production)
• create production order
• Once release the operation PR has generated
• Create PO
• Stock issue  subcontracter mb1b ( 541/o) ( for external )
• GRN (MB31-101 Mov type).

with regards

dinesh