Job Order Processing.

[Former Member]

Hello Friends.

We have a Business scenario Like this.

Our Client is a small size vendor to the big companies.

He will accept Semi Finished goods from his customers and performs some operations and sends back the Finished goods.

In other way its a Reverse of Sub contracting Process.

from the customers point of view its a sub contracting process and from my clients point of view its a job order processing.

He accepts Components from the clients , assembles them and makes into FG in some cases and in other cased he accepts a FG from the customer , dis mantles them into small components and sends back the components to the customer.

We have to map both the scenarios in SAP.

Can any one of u guide me in this scenario as

1) how to treat the customers stock in our inventory and how to handle them.

2) how to Map the business scenario

Your help is much appreciated

Thanks

Srini

[Lakshmipathi]

Dear Bhagavatula

May be you can try with this

1) Extend the material (say M1) in receiving plant with material type UNBW.

2) While doing MIGO, only stock quantity getting inwarded without any values

3) Create the BOM following regular process for the above, keeping M1 material as the 1st component

4) Confirm the service by one operation with material code M1A (material type HALB) through MFBF (Item Category Group NORM

5) While doing PGI, stock at servicing plant will get reduced.

6) HALB being sold to customer with no ED, Cess, Tax etc.

7) Raise an invoice (charging ONLY for service charges) with TDS

Thanks

G. Lakshmipathi

[Former Member]

Dear Friends..

Thanks for each and every one who have replied to my question.

I will evaluate and test on the differenet procedures that have been mentioned by you all and I will feedback in another couple of days..

Sorry for the delay in my reply as i was stuck with some major issues and could not look on to this site..

Thanks & Regards

Srini

[Former Member]

Dear Bhagavatula Srinivas,

Hai. In addition to what the others said,

You can treat the Semi Finished goods you receive as Semi Finished or Raw material (depending on your client’s requirement) from your Vendor (your customer) and do normal manufacturing process like adding your own raw material to it and making it into a Finished Goods. This will follow normal manufacturer’s process: Raw / Semi Finished Material Receipt, Sales Order, Production Order, Production, Quality Inspection, Delivery & Billing.

For the material which you receive as Finished Goods and have to dismantle into its components and send it back to your customer, may be this can be treated as a job work / service job, where you receive the material and you do the job and raise the Sales Order, Service / Job work, Quality Inspection, Delivery & Billing.

Hope this is of use to you, if it is do reward points. And also when you receive your answer, plz remember to close the thread.

Thanks and regards.

Venkat - HYD

[Former Member]

Dear Bhagavatula Srinivas,

Customer material either FG or Semi FG both are same for your scenario. Create material master without updating Value in OMS2 and quantity updating is required to keep customer material account.

When customer Material you receive take into stock with movement type 561 it will update quantity but not value.

Create an order with this material and you need to charge Labur cost. maintain condition type for labur cost and Service tax. Do the delivery and billing.

Any clarification reverts back with reward points.

Regards,

Srikanthraj

[Former Member]

Srini,

Appreciate, if you could post this thread into MM forum, they will be able to guide you more correctly in terms of inventory.

Prase