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MIGO -GR only for good quantity , subcontract PO

Mar 03, 2017 at 06:15 AM

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Dear Friends,

I need to receive the good quantity of finish good for a sub contract PO.

Material BOM maintained for Finish Product A (Base Quantity = 100 PC, out of 1 EA raw material, 100 PC product A can be made)

Raw material R required = 1 EA

Product A have material conversion maintained in material master, I EA -100 PC, purchasing unit is PC.

There is around 60% rejection in the process

If we issue raw material 100 EA to vendor, vendor will process 100 EA, produce product A (100 X 100 =10000 PC) after testing, deliver 6000 PS finish good A, invoice for processing 100 EA.

So I have created PO for finish good A 100 EA price 10 $

Create GR for 100 EA

Sub contracting material consume for 100 EA, but I want to receive only good quantity 6000 PC into inventory.(we do not want to receive FG 10000 PC and scrap 4000 PC)

Also Create IR for 100 EA so that vendor will get payment for whole process quantity.

Please suggest.

Pradeep

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1 Answer

Jürgen L
Mar 04, 2017 at 09:55 AM
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such scenario is not possible with subcontract purchase orders. They are used for a simple form of subcontracting, where the goods issue of components is made through back flushing when a goods receipt for the finished material is posted.

If you want do such with a purchase order, then you have to change the PO before you perform a receipt. You would need to change the PO quantity to the quantity that you will receive, and you also need to change the price, and you need to change the BOM in your PO item Material tab. Quite a lot changes that need to be accomplished to cover such process, so it is not really a desirable process.

Such complex subcontracting processes should be done with production orders, and only order the service via purchase orders.

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