Third Party Sale through Subcontracting Vendors (SC Vendor Dispatch Direct to Customer)

[appasaheb_nagargoje]

Hello Experts,

We are doing subcontracting process for some materials.

after receiving finish material from SC vendors we are directly saleing to our customer without any process at our end.

SC vendor provides Bills and doing MIRO.. its ok.

Bu our requirement is that.

we want to dispatch the Finish material to customer from SC vendors.

* SC vendor: should get Subcontracting Charges, Subcontract process must be follow as per india rule.

* customer : Invoice must be raise incliding Tax invoice (J1IIN)

How we can achive??

Regards,

Appasaheb

[Prasoon]

Hi,

   Refer the standard BPD: 252 – Third-Party Order Processing with Subcontracting

Regards,

AKPT

[former_member188914]

Hi,

In your case J1ILN may not be required for subcontracting vendor invoice. In CIN subcontracting scenario, where one vendor supplies raw materials to SC vendor, no subcontracting challan is required. When raw material vendor sends the material directly to the subcontracting vendor, he also sends excide invoice to the SC vendor and duplicate copy to the plant. Plant captures the excise duty but does not post the document. Posting of excide invoice is done when original invoice is received from the SC vendor. In your case, raw material vendor will be supplying goods directly to the customer. So he might send you copy of excide invoice and there will be no excide invoice at your side as there is no material received by you. In case of customer invoice, I am not sure if J1ILN is required or not. Try searching third party scenario CIN version, you will get your answer.

Regards..

[appasaheb_nagargoje]

Hi,

Thanks,

I don't want to create Outbound delivery for Subcontracting process.

I want Outbound delivery for Customer when i am dispatching material from SC vendors.

so we can create Outgoing excise invoice through J1IIN.

Regards,

Appasaheb

[former_member233510]

1) Create third party sale order

2) Convert PR into PO

3) Issue components to subcontracting vendor

4) Post statistical GR with consumption of components

5) Verify Invoice from subcontractor

6) create billing and send it to the Customer

For technical configuration, please refer the following link:

http://help.sap.com/saap/sap_bp/BBLibrary/HTML/252_ERP606_EN_BE.htm

[appasaheb_nagargoje]

Hi

Thanks,

but is it possible to create outbound delivery then Billing and then J1IIN ??

Please provide me in details?

Regards,

Appasaehb

[former_member233510]

Yes you can create an outbound delivery request for components to be shipped to the vendor. For this you need to activate subcontracting cockpit and the corresponding transaction code is ME2ON.For more detail please refer the following link:

https://help.sap.com/saphelp_globext607_10/helpdata/en/48/cf2408631f0783e10000000a42189d/content.htm...

Please go through the configuration guide in the link:

http://help.sap.com/saap/sap_bp/BBLibrary/HTML/252_ERP606_EN_BE.htm

[appasaheb_nagargoje]

Hi,

Thanks,

I don't want to create Outbound delivery for Subcontracting process.

I want Outbound delivery for Customer when i am dispatching material from SC vendors.

so we can create Outgoing excise invoice through J1IIN.

Regards,

Appasaheb

[former_member233510]

There is no need for you to create the excise invoice when you doing third-party sales and also you can't create outbound delivery for customer when you not sending the material from your plant.

[appasaheb_nagargoje]

Hello,

I will explain you again.

Suppose Vendor Name is : Metalman Job works, he is working for Boss India Ltd (manufaturing Comapany)-- Subcontracting Process

Customer Name is: Tata Motors Ltd, Boss India Ltd is supplying material to Tata Motors. -- Sales Process

Tata Motors Ltd is purchasing material from BOSS INDIA LTD and

BOSS INDIA LTD is doing the jobwork from Metalman Job works.

In this case BOSS INDIA LTD is sending componets to Metalman Job works and metalman is converting Component into Finish Goods and Direct dispatch to Tata Motors Ltd.

so we require to raise Commericail invoice with Tax Invoice (J1IIN) on Tata Motors Ltd and also complete Subcontracting process of Metalman.

Please suggest.

Regards,

Appasaheb

[former_member233510]

Please refer this link (Excise duties in third party order processing): http://help.sap.com/saphelp_rc10/helpdata/en/70/23d9d8419311d2ac100000e829fbfe/content.htm

[appasaheb_nagargoje]

I have checked it.

Its releated to standard material procurement process.

we want Subcontract vendor process involve in it.

[former_member192897]

If this is the case, Subcontracting Purchase requisition has to be generated from Sales side. Its a kind of Third Party Scenario where in the Procured goods are shipped directly to Customer and Billing is done against Sales order.

Did you check this scenario in SAP System? Do you have any gaps on Sales processing or Subcontracting process?