Subcontracting Challan

[Former Member]

Hi Gurus,

What is the difference between 57F4, Returnable, & Non Returnable Challan?

How to map all above in SAP system?

Thanks

Akshay

[Former Member]

ok

[pankaj_singh9]

Hi,

Subcontracting Challan: - A document that you use to issue and track subcontracting work. It allows you to make sure that all the materials you have sent to the subcontractor for processing are returned. The challan is also widely known as the 57F4 challan, after the law under which it was defined up until the 2000 budget. This law has now been superceded by a new one, 57AC.

Use: - You create challans from transfer orders to accompany any materials that you send to subcontractors under rule 57AC. In this respect, they are an extended form of delivery note, with additional information about the excise duty on each material that you have supplied. Materials that are not liable to excise duty do not have to be included in the challan.

As the subcontractors return the finished goods to you, you record the returns in the challan, to make sure that all are returned within the allotted time limit.

If the finished goods returned to you by the subcontractor are of substandard quality, you can also create a subcontracting challan from the returns order.

Returnable Gate Pass: - A document that you use to issue and track the repair work of a material, which will come back to your plant after repair. For e.g. Repairing of Motors and machineries

Non-Returnable Gate Pass: - A document that you use to issue and track the materials, which are send ut of factory on permanent basis and not going to come back. For e.g. Sending Motors and machineries for scrapping to the Scrap Vendor.

[Former Member]

Dear Pankaj

Thanks again for your earliest and prompt response. Now the concept is OK for me.

But how to map the Returnable and Non Returnable Gate Pass. Is the concept same as the Subcontracting or any other way? How to take the print for the Scenarios?

Plz explain in details.

Thanks

Akshay

[pankaj_singh9]

Hi,

Try the below suggested procedure;

Returnable Gate Pass: -

1. MM01 - Create Material Master for every Spare Part / Machinery to be sent to Vendor for Repair as Non-Valuated (Material Type "UNBW") (Do not extend Accounting and Costing views since you don't require postings of Stock value and consumption values, you only want to track the Service/Repair Charges)

2. MIGO - Goods Receipt > Others (Receive the quantities of these materials using Movement Type 501 / 511)

3. ME21N - Create Subcontracting PO (Here Main Material and Component will be same material)

4. MB1B - Transfer Posting w.r.t. Subcon PO (Mvmt Type - 541, Spare Part stock will get posted to Vendor Stock)

5. MB90 - Take Print out of this Material Doc as Returnable Gate Pass (U need to configure Message Determination of Inventory Mgmt)

6. MIGO - GR against Subcon PO (101 - Receive Spare Part, 543 O - Consumption of Spare Part form Vendor Stock)

7. MIRO - LIV for Service Charges w.r.t. Subcon PO

Non-Returnable Gate Pass: -

1. MIGO - Goods Receipt > Others (Receive the quantities of these materials using Movement Type 501 / 511)

2. MIGO - Goods Issue > Others (Issue the quantities of these materials using Movement Type 501 / 511)

3. MB90 - Take Print out of this Material Doc as Non-Returnable Gate Pass (U need to configure Message Determination of Inventory Mgmt)

Note: - If Client is not satisfied with this then you need to go for development of Gate Pass System.

[Former Member]

Dear Pankaj,

For Returnable Material

How the material be non valuated if i'm purchasing the same material and maintaining the inventory( ex pump)

And i'm sending the pump to vendor for impeller change.

For Non Returnable Material

How to issue the material, you are suggesting 501 mov type.

Plz clarify, i'm near to solve this issue.

Thanks

Akshay

[Former Member]

Hi Pankaj and ALL,

Waiting for your response.Plz help

Thanks

Akshay

Edited by: akshay sonurkar on Jul 31, 2008 10:47 AM

[pankaj_singh9]

Hi,

In case of Non-Returnable Gate Pass, to issue material go to

MIGO - Goods Issue > Others (Issue the quantities of these materials using Movement Type 502 / 512)

I am asking material to be maintained as Non-valuated if at all you are purchasing assets, against Account Assignment as Asset.

If you have already material code for that (for e.g. motor, pump, etc...) then use same material but then receive it using 511 (if you will use 501 then it will hit FI entry which is unwanted because these materials already capitalized and not the part of valuated inventory and for gatepass purpose you only want the quantity tracking, no value information)

You can use material valuation as per your requirement, if it is required then use, if not then don't use.

What I have suggested is my perspective, it is totally dependent on your client's requirement.

[deiva]

For Returnable Material

How the material be non valuated if i'm purchasing the same material and maintaining the inventory( ex pump)

And i'm sending the pump to vendor for impeller change.

1. Create a service master record.

2.Create a Service purchase order.

3.Create a dummy material code with text as a pump.

4.Do MB1C with 511 mvt type.

5.While receiving do MB1C with 512 Mvt type. This is just for tracking purpose ( both 4 & 5 th step ).

6. Create a service entry sheet.

6.Do LIV for Service PO.

For Non Returnable Material

How to issue the material, you are suggesting 501 mov type.

1. you can use 331 ( sampling )

2. 551 ( scraping )

3. 601 ( GI for sales ).

[former_member335885]

HI,

http://help.sap.com/saphelp_47x200/helpdata/en/95/3ca425110511d4b5ae006094b9ec21/frameset.htm

Hi the Subcontracting process of 57F$4 is followed in in idia when ever you r sending the material for subcontracting from your factory. As per the Excise department it should accompany a challan saying that it not for sale for work and you to declare the value of the gods you r sending out.

This challan has a valid of 180days

once u recve the material and challan you have to close this challan if not u have to pay a penalty to the department.

Regards,

Kiran