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subcontracting PO

Hi All,

How do you manage scrap which you will get back from vendor while subcontracting PO?

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  • Best Answer
    Posted on Jun 16, 2008 at 08:56 AM

    Hi Patel,

    I will try to explain you about subcontracting process with by products using the below scenario.

    Suppose your End/Finished product is say SUGAR. and your components in this case is SUGAR CANE and you will receive MOLASIS as a By product.

    Maintain a BOM for End product SUGAR.

    Give components as SUGAR CANE

    give by product Component MOLASIS as -ve

    Create a PO with Subcontracting Doctype.

    Send the Material to Subcontractor Thru. MB!B 541 Mov type or use ME2O Trxn code.

    Now once your Finished product is processed by subcontractor he will send you back.

    Make GR with 101 Mov type.

    You can see the End product with 101 Mov type

    and Your component posted is with 543

    and your by product posted is with 545 Mov type.

    You can take the By products into your premises thru. MB1B 542 Mov type. Or you can use MB1C 531 Mov type.

    Hope this is help you. Please revert back for further Clarifications.

    Reg,

    Ashok

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 15, 2008 at 05:26 AM

    Hi,

    If you want to take back the scrap generated at subcontractor, enter the scrap as a by product in BOM with negative quantity. this will be posted to stock at subcontractor (545) at the time of GR. you can post another transfer posting in MB1B USING 542 movement type.

    Otherwise if the scrap is operational and it is not going to come back, you can enter the scrap percentage for components in BOM.

    Regards,

    Ramakrishna

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  • Posted on Jun 15, 2008 at 03:22 AM

    HI,

    The scrap which u get is stored in a seperate storage location. Or if it can be sold it is done through SD module. Or this can be used as a raw material to other processes.

    Thanks & Regards,

    Kiran

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