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Former Member

Subcontracting process

Hi all,

Can any one please tell me complete steps of subcontracting process with transactions?

when i have to post raw materials and packaing material to toller's storage location? is it before raising purchase order or after purchase order?

Please respond.

Best Regards,

AI.

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6 Answers

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    Former Member
    Sep 02, 2008 at 08:20 AM

    I have figured out that for us , process should be :

    Purchase Req- Purchase Order - MIGO 101- Invoice Park - Invoice Post

    Does this matches to standard SAP subcontracting process?

    Please respond.

    Best Regards,

    AI.

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    • Former Member

      SAP subcontracting process:

      1) Material BOM should be present (CS01/CS02/CS03)

      2) Purchase Requisition (with item categgory L)

      3) Purchase Order wrt to PR

      4) Issuing components to subcontractor (MB1B movement type 541)

      5) Goods Receipt (MIGO movement type 101)

      6) Invoice Verification (MIRO)

      regards,

      indranil

  • Sep 01, 2008 at 10:08 AM

    Hi,

    Subcontracting Process

    Subcontracting without Payment of Duty

    - Creation of Subcontracting PO (ME21N)

    - Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)

    - Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)

    - Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and autoconsumption of components with 543 movement}

    - Reconciliation of Subcontracting Challan (J1IFQ)

    - Completion of Subcontracting Challan (J1IF13)

    - Generation of Annexure IV (J1IFR)

    Subcontracting under Full Payment of Duty

    - Creation of Subcontracting PO (ME21N)

    - Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)

    - Creation of Excise Invoice w.r.t. Transfer Posting Document (J1IS)

    - Capture Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)

    - Post Excise Invoice (J1IEX)

    Master Data

    - MM01- Material Masters for Components and FG

    - XK01 - Vendor Master (Subcontractor)

    - CS01 - BOM for FG

    - ME11 - Purchase Inforecord for Subcontracting

    Note: - Excise Transactions need to be performed only if it is applicable.

    ____________________________________________________________________________________________________________________________________________________________

    Hi,

    Refer link;

    [Subcontracting Process w/o Payment of Excise Duty|http://help.sap.com/bestpractices/BBLibrary/Documentation/J85_BPP_V2_EN_IN.doc]

    Subcontracting Process

    Subcontracting without Payment of Duty

    - Creation of Subcontracting PO (ME21N)

    - Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)

    - Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)

    - Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and autoconsumption of components with 543 movement}

    - Reconciliation of Subcontracting Challan (J1IFQ)

    - Completion of Subcontracting Challan (J1IF13)

    - Generation of Annexure IV (J1IFR)

    Master Data

    - MM01- Material Masters for Components and FG

    - XK01 - Vendor Master (Subcontractor)

    - CS01 - BOM for FG

    - ME11 - Purchase Inforecord for Subcontracting

    Configuration: -

    - SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Subcontracting Attributes

    Here maintain following;

    Excise Group XX

    Excise TT 57FC

    Subtransaction Type 01

    Subtran Type Text 57FC CHALLAN

    Subc. Period 180

    Rate-subcontracting

    Mvt Grp Issues 0001

    Mvt Grp Receipt 0002

    Filter Non exise

    EI Items 10

    No. range no. 01

    Ass. Val. /Exc Inv

    Subcon Output Type J1IF

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

    Here maintain following

    MVT. Grp. MvT S

    0001 101 O

    0001 541 O

    0002 542

    0002 542 O

    0002 543 O

    - J1I9 - maintain No range for object "J_1I57FC" for series group

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    Former Member
    Sep 01, 2008 at 10:11 AM
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    Former Member
    Sep 01, 2008 at 12:24 PM

    Hi Al,

    Please find overview of subcontracting process.

    1) We have to provide at least one component to the vendor.

    2) Components given to vendor are listed in PO

    3) Components are determined via BOM

    4) Can be requested through PR & can be converted in PO / scheduling agreement under Item Category" Lu201D

    5) PO is placed on finished code.

    6) We issue goods to vendor to provide components to vendor (special stocks O)

    7) GR is done as per finished good. At the same time consumption of the component is posted

    8) You can also trigger requirement through MRP.

    I think this will give you idea about subcontracting process.

    ,

    1) Transfer posting from unrestricted use stock to the stock of material provided to vendor: 541+ O

    2) GR of finished product wrt Subcontract PO: 101 + O

    3) GI of the components consumed - 543 + O

    4) Byproduct posting: 544

    5) Transfer posting: plant to plant -one step: 301 + O

    Material to Material: 309 + O

    Quality to unrestricted: 321 + O

    Vivek

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    Former Member
    Sep 02, 2008 at 04:57 AM

    Thanks to all of you but I cannot find this path :

    SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Subcontracting Attributes

    In logistics general, there is no head for "Tax on Goods Movements".

    Also tell me that in subcontracting PO, we enter finished good as line item or raw and packaging materials as line item? Please respond.

    Best Regards,

    AI.

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    • Hi,

      In case if you are not finding tax on goods movement, that means that you are using a SAP version which is less than 4.7.

      SAP provides CIN(India Version) as an add on from 4.7. For before releasese you have to install a seperate component for CIN.

      It entirely depends upon the business and the job work.

      say for example you have steel sheets(ROH) you are sending the steel sheets for cutting then you recieve ROH and send ROH only

      say for example you are assemblying then you use more than 2 ROH to get 1 HALB(semifinished)

      or say you are sending a finished(FERT) good for polishing then you enter FERT in the line item.

      Thanks & Regards,

      Kiran

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    Former Member
    Sep 02, 2008 at 05:31 AM

    Let me explain the complete scenario. we send raw materaials and packaging materials to toller and he sends back the finished good. the current process is that

    Production order - purchase requisition - purchase order - 101- Production Order confirmation - Production order settlement (KO88).

    Payment of services to the toller is done by finance at the month end.

    I want to shift the above process to standard subcontracting process. Please tell me that if i change the process as :

    Subcontracting PR - Subcontracting PO - GR (101)

    then the system meets with SAP standard?

    also tell me that what does standard say about payment to the toller? is this should be with finance as it is now in current process or shud we park and post the invoice with every PO?

    Please suggest.

    Best Regards,

    AI.

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    • Hai,

      You can map this scenario by the standard subcontracting process.

      1.Create the SC PO for finished goods in the item overview with item category L

      2.Enter the raw material & packaging material in the components to be provided or maintain BOM & explode this in PO - Item level - Material data tab - Components or BOM explode icon.

      3.Do the MB1B Transfer posting with 541 mvt type to transfer the materials from unresricted stock to components provided to the vendor.

      4.Do the MIGO with 101 Mvt type for SC PO to receive the fininshed goods. Here the material provided to vendor will be consumed back by 543 mvt type.

      5.Park the LIV vendor invoice by MIR7.

      6.Post the LIV by MIRO.