Application Development Discussions
Join the discussions or start your own on all things application development, including tools and APIs, programming models, and keeping your skills sharp.
cancel
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for 
Search instead for 
Did you mean: 

Components directly sent to subcontractor with excise on our behalf

Former Member

‎01-28-2016 3:21 AM

0 Kudos

Hi Guru

I have a scenerio that Vendor Directly sends the Rawmaterial and Components to one of my subcontractor along with Excise on our behalf.

Subcontractor maintain register and stocks on our behalf.

now they are moving into SAP..Please do let me know how to handle this in SAP

regards,

Ramesh

2 REPLIES 2

binoy_vargis1
Active Contributor

‎01-28-2016 1:07 PM

0 Kudos

Normal subcontracting doesnt require you to pay excise within 180 days in lieu of subcontracting challan. Its not clear who is moving into SAP ,vendor or the subcontractor? How you are handling it currently in SAP.

Also check this FAQ question 37

542862 - FAQ: Country Version India (CIN) General MM queries

Regards

Binoy

Former Member
In response to binoy_vargis1

‎01-29-2016 10:54 AM

0 Kudos

Hi

Sorry,

The process in the legacy system (non-SAP) is like below:

CompanyA raises Purchase Order on VendorV, then VendorV supplies materials(RM/PM)  along with Duplicate for Transporter to SubContractorC.

SubContractor maintains stock and registers on behalf of CompanyA

CompanyA releases Invoice Payment to VendorV.

Then SubcontractorC manufactures FG with the given RM/PM and Sells to Distributors along with Excise and trasnfers the Amount excluding their service charges to CompanyA

Now, CompanyA looking to incorporate this into SAP system.

Could you please help!!!

regards,

Ramesh B