Sub contracting for Job work

[Former Member]

Dear friends,

We regularly get it done the job work from vendors. We need a small information.

There is a Material 'X' After completion of 5 operations it will be come 'Y'.

Operation 10 is done inside.

Operation 20 is done inside.

Operation 30 is done outside.

Operation 40,50 will be done inside. Then it will be come 'Y'

In order to send the Material after 20th operation, Does we have to make another Material No(i.e.) Intermediate Material No.

If so, whenever we want to dispatch the material, we have to make new code ((Material No.)

Please clarify.

[Amit_SAP]

Hello Ramesh,

Please follow the below link

Hope this will help you.

Regards,

Amit Sharma

[jayaganapathy]

external processing of operation

1) routing for operation 30  maintain control key pp02 and vendor details/ info record/ price

2)once you create productionorder and release  pr will be generated for operation

3)pr can be converted to po once you make goods receipt  it will reflect in production order

4)dummy number not required

[Former Member]

Dear Mr.Ganapathy,

Thank you for the reply. However

(a) It is excisable material.

(b) Job work is done outside our premises.

(c) Can we make DC, Excisable Gate Pass in this procedure.

(d) Also cost of the Raw Material and cost of first 2 operations should get added in Excise Gate Pass. It is as per excise law. Is it possible.

Please confirm.

[jayaganapathy]

Dear ramesh,

57f4 challan creation & processing  do check with mm forum   for better clarity

.

[binoy_vargis1]

In this case from PR you have to convert it to Subcontracting Purchase Order with Item category L.

After that these are the detailed steps.

1) Create Subcontracting PO. You are giving the conversion charges inside PO price.

2) You have to issue components in MB1B-541 movement type.

3) Create 54FC challan in J1IF01. Here you will get the option of giving assessable value of each component. But Excise will be Zero if the components are returned/consumed within 180 days.

4) Do Goods receipt in MIGO for the Finish product. Automatic consumption booked for components in 543 movement type.

5) Reconciliation of challan in J1IFQ

6) Completion of challan in J1if13

Check the Subcontracting Excise config in this path.

SPRO-->Logistics - General-->Tax on Goods Movements-->India-->Business Transactions-->Subcontracting-->Subcontracting Attributes/Maintain Movement Type Groups

Regards

Binoy