sub-contracting

[Former Member]

Hi All,

Please give solution for the below mentioned sub-contracting scenario :

Company 'A' will give components to Company 'B' for sub-contracting operations. But the components are stolen at 'B' s premises. So he will buy the components from outside and do sub-contracting, deliver it to 'A' . But Company 'A' will give only processing charges to 'B'. So what will happen to the charges paid to the components by 'B'. Who will pay this ?How to configure this chargeable components ?

Regards,

[Former Member]

Hi,

I'm assuming that Company A and B are both in SAP. Company A should get components from B via an intercompany stock transport order. How B supplies the material to A is transparent to A. If B has stock, it goods issues out of its own stock. If it doesn't have stock, it purchases from an external vendor.

I don't think this should be dealt with using subcontracting, because when A asks for the material, it does not know B has to rely on external vendor (sub-contract) to get the goods in. If B loses its stock, it has to bear the costs of paying for the purchased components.

Please explain why it is set up as a sub-contracting scenario.

Phyllis.

[Former Member]

Thanks for the reply.

Both the companies are on SAP. Both belongs to different company codes. Through 541 movement , material will be sent to 'B'. After the components are stolen in 'B' s premises, before doing sub-contracting work, 'B' will procure material and do s/c process and deliver the goods to 'A'. I hope it is clear now. Pl tell me how to configure. Who will bear this components expenses?

Regards,

[kunal_ingale]

hi

as the components are get stolen from premises of B , its on the liability of the material

is the material reposnsebility is of B or A , the company responsible for take care of material will pay the charges

plz discuss this with the senior management or FI person that who will be liable to pay

if the B is liable then he will run the procurement cycle of material

if a will liabel then he will run the procurement cycle and then again transfer the material to B

regards

KI