Sales Scenario

[Former Member]

Hi All

X company Manesar sells a product cylinder head to Y company at Rs 100. It manufactures the product( cylinder head) with material code 53000001with a cost price of Rs. 70. It then sends it to its vendor Z for painting that costs something like Rs. 10/-. after painting the material code becomes 723000021.Now bill is raised on the material code 723000021 keeping a profit of Rs 20/-. Material is directly reaching the customer from the Vendor.

Now when X sends the material to Z it raises a bill for Rs. 100/- and passes it to Y through Z only. Next day Z also issues a bill to X against the painting cost of Rs. 10.

Please give me some clue how to develop this scenario

Regards

Chandra

[Former Member]

Thanks for ur valued suggesstions.!

Chanmdra

[Former Member]

Dear Raja and Divya

Thanks for your prompt reciprocation.

But here third party is not possible. In third party material is never sent to vendor Z from the company X for a job work. Instead of that the final material is completely externally procured by Z.

A sub contracting job work related to MM module is also not possible here, as in subcontracting, the material will be sent back to the company X, from the vendor Z after job work.Then from X, material will be sent to y

My Observation:

X= Company, Z Vendor , Y=Customer

a. Needed Scenario:

(1) 53000001 (2) 723000021

X.......................... Z............................. Y

b. Third Party: ( not possible for u201C au201D scenario)

Material

Z....................................... Y

c. Sub Contracting Job Wrok: ( not possible for u201C au201D scenario)

(1) 53000001

i) X ............................................. Z

(2) 723000021

ii) Z ....................................................X

(3) 723000021

iii) X.................................................... Y

u2022 Some Observation:

If we take vendoru2019s location as a separate shipping point to the company X. It has been a good clue, when I was groping into the dark, but it vendor, Zu2019s location is right there with the plant of the company X, lets say P. Then How does X can be sent a MIRO? I mean to say how will the vendor Z , raise a bill to X?

Please reply soon

Cheers

Chandra

[Former Member]

hi Chandra,

As per my Understanding this is the process of SUBCONTRACTING.

Subcontracting is a process where in which you give ur material to the vendor for making some process(like assembling/packing/finishing..etc) and you will pay vendor for the process performed.

For this the process starts in this way,

PO is raised with item category "L" and correspondingly u have give the BOM for which you want to subcontracing to be done.

Then need to issue the goods(Transfer Posting) to subcontractor(note : this will be our stock only, valuated at our valuation area, you can check the stock in MMBE as special stock)

Now vendor will perform the required operation and send the material back to customer.Now we will do GR for the received material, simuntaneously materials provided to vendor will back flushed once you receive the product from vendor.

(Special case:If you have bye products , then you need to reverse the GR for the bye products to visible in your stock)

Once is GR, vendor will be paid for his services via LIV

Thanks,

Raja

[Former Member]

Hi,

This is similar to third party sales.

I request you to search in the forum , enough config details are displayed regarding the third party sales.

Divya.