Skip to Content
author's profile photo Former Member
Former Member

Subcontracting with Scrap

hello gurus,

In subcontracting process i am sending 105 kg of Raw material (Material A)

subcontractor is returning me Finished product 100 kg of material (Material B)

then please tell me how can i Receive 5 kg in scrap from Vendor

I want maintain Scrap as Material C,

Scrap has some Value which will be sold later...

Pls tell me in Step by step

Thanks a lot/Regards

Add a comment
10|10000 characters needed characters exceeded

Related questions

3 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Jan 29, 2008 at 06:20 AM

    Hi

    While Creating BOM for youe Finished Product Material B....in Components List, Maintain The Scrap Material C Qty. as a Negative Component.....

    Then While you do GR for your Finished Product, Material B in MIGO......the Scrap Material C - 5.0 kg will be generated in 545 O+ M.Type......and it will be lying at SC-Vendor's Place.....Then you have to separately take back this Scrap Material C in MB1B useing M.Type:542 in to Company's stock and sell...

    Reward if useful

    Regards

    S.Baskaran

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Jan 28, 2008 at 05:04 PM

    Hi Veera,

    Please refer the following link

    http://help.sap.com/saphelp_46c/helpdata/en/4d/2b900743ad11d189410000e829fbbd/frameset.htm

    Below gives you the step by step Sub Contracting process.

    (1) You have a material that can be procured externally, and you have maintained BOM with components. Any waste generated and received during subcontracting process can be maintained as component with negative quantity.

    (2) You create a subcontracting PO (PO with Item Category L). You can also maintain Purchase Info Record for Subcontract category for material and subcontractor.

    (3) You make a transfer posting to issue components for SC PO. Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor"

    (4) You receive finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products. There are three events, so three accounting entries are generated:

    DR FG Stock/ SC By-Product Stock

    CR Change in Stock (FG/ SC By-Product )

    (for finished goods received)

    DR Subcontracting Charges

    CR GR/IR Clg

    (for moneys payable to Subcontractor)

    DR Consumption (Components)

    CR Change in Stock (FG/ SC By-Product )

    (material provided to Vendor is now charged to expense)

    (5) You do the IV for SC Invoice, and the process is complete.

    Thanks

    Murtuza

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Jan 28, 2008 at 05:52 PM

    Hi

    When u r making a subcontracting you will be defining a BOM

    For example as per u r scenario

    You r sending a material of 100 Kgs and u r product is B of 100 Kgs and the scrap is 5 kgs

    Maintain the scrap Mat C in your Bom has negative value(-5 Kgs)

    Bom For B

    Mat A 100Kgs

    Mat C -5 Kgs

    Then make a usual subcontracting purchse order with item category L then issue the material.

    Once the vendor has supplied the product B 101 Mvt. type will be for Product B and 543 movt. will take place automatically and 545 mvt. will take place Rcpt. for SC byproduct automatically it will get updated in your stock and your inventory value grows up and the scrap will be valuated.

    Regards

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.