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Former Member

Subcontracting Scenario

Hi Friends,

I am sending metal sheet in kgs to a vendor. He will cut into pieces and send back in number of pieces. I have to get back scrap sheets left with him and account it and will be scrapped later. I have BOM for Cut pieces with sheet as child item.

one piece = 0.25 kg in BOM and raise PO for cut pieces.

How to get back scrap and account it. Do we have to add scrap % in BOM ?

Please help

Regards

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2 Answers

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    Former Member
    Sep 24, 2008 at 04:41 AM

    Hi,

    scrap should be entered in BOM as -ve qty...

    While you recieve the end product(finished) scrap will be accumulated in vendor's place with the movement type 545 O-.

    You have to reverse manually using 542 mvt type...

    If its accumulation and over accumulation - 545

    If cumulated qty is less you can do subsequwnt adjustment using 121 and indirectly 546 gets hit..

    Reg,

    Deepak.

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    Former Member
    Sep 24, 2008 at 05:04 AM

    Hi,

    Follow the steps,

    1. Say i am providing three components A, B & C to get

    ASSEMBLY from sub contractor vendor.

    2. Create a Material master for Scrap material say D.

    3. In BOM, maintain the Material D in negative quantity,

    Say A - 1 off, B - 2 off , C - 2 off, D - 1 kg.

    4. Now follow the regular process of subcontrating.

    5. When you want to inward the scrap material from the

    subcontractor end, first receive the material D with the

    movement type 545 ( This will make the material available

    in material provided to vendor stock ).

    6. Then do a GR with 542 movement type to get the scrap

    material in to plant stock ( ie reversal of 541- Goods

    issue movement type)

    BR,

    Krishna

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