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Former Member

Job work process between two company codes?

i have 2 company codes suppose X and Y. X gives Semifinish goods to Y for job work and Y do the processing and sends back the material to X and raise the invoice for processing charge to X. Kindly suggest how can we map this scenario in SAP from SD point of view.

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3 Answers

  • Nov 03, 2016 at 03:05 PM

    From SD point of view, you can follow the standard OR process but what the more important is what is your client's expectation? Should there be any statutory requirements, you need to take into consideration those aspects also. Also discuss with your FI team on how the financial postings should happen for this scenario. Once this is freezed, then you can configure accordingly.

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  • Nov 15, 2016 at 08:15 AM
     what you mean by statutory requirement 

    If your client are running the business in India, then excise and tax would be applicable.

    Coming to your query, follow the steps listed below

    Activities of X Company

    • Raise Job Work PO on Y
    • Inward the FERT

    Activities of Y Company

    • Raise Sale Order on X
    • Carry out MIGO (you can even try with movement type 101E)
    • Do Backflush (production activity) and transfer the stock to Unrestricted Storage Location
    • Do Delivery and PGI for FERT
    • Raise Invoice on X for the job work carried out
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    Former Member
    Nov 03, 2016 at 07:48 PM

    Thanks Lakshmipathi,

    Can you brief about what you mean by statutory requirement. For you info I would like to make it clear that client need accounting entries as well as there will be payment transaction happening for this scenario. Also SD configuration will take place in Y company code what about X is it going to be subcontracting for it?

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