Import Subcontracting

[Former Member]

Dear CIN Expert,

Please give some valuable Input.

I want to do subcontracting process but subcontracting vendor is Out Of India. I need to send the material and take the material after completion of the work.

Example- I Have Procured 1 Machine from Import, at the time of installation an Engineer came to know this material is not as per the drawing. now I need to return back that material for correction and again need to take back into our premisses.

Please explain me, How to handle this Process in SAP with Taxation.

As per Vendor agreement, he will not give any invoice to us, but all freight and custom we need to bare.

Thanks in Advance.

[Former Member]

In Subcontracting you provide some components to sub-con vendor and vendor will provide you the FG material.

In your case your are procuring the capital goods such as machine or any other assets from import supplier.

1) Cancel the MIRO for which you had done for customs

2) Reverse the Excise details captured

3)Reverse the MIGO document (122 Movement type)

4) Reverse the MIRO document performed to import vendor

5) Take the reversal print out and send the machine back to vendor.

Once vendor sends the correct machine follow the Import process again

[former_member182489]

You need to do Import purchase and not Subcontracting process.

Process

In PO for wrong asset already taken and did final Inv settelment

1Create import PO in which vendor is import vendor (Pricing Schema is determined from vend. master)

Most case it will be an ASSET ( as you mentioned its machine or parts of machine)

2Maintain correct your CVD, Freight, Landing charges

3Do BOE

4.Do GR

5.Capture and post  Excise

6.Final Inv settlement  

to Return back to vendor

Do return with Mvt type 122 in Migo

Create a Dr memo

Taking Goods again

Create a new PO with correct Asset or use same PO - add in th text the reason like component not matching and retaking the correct component or asset ect

Do BOE for customs clearing

GR

Cat and post excise

do final Inv Settlement

Please discuss with your FI person and come up with a solution as business required

regards

manu

fyi-  search in this forum or help .sap to understand to the scenario  better.

[Former Member]

HI,

For Services cost, you book the service Process way.. Creation Service PO, Do Service Entery sheet, do MIRO.

only Cost.

Send the Material out plant using 122 mov.type with PO..........

Regards

ram

[Former Member]

Is this machine asset or normal Purchase, Returns not possible for subcontracting items, If purchased Just do Return Delivery against that GR doc.

For freight adding on machine u can taken care in invoice  material tab u can add on machine, and for customs std process can be done with respect to po normally...