subcontracting to vendor

[Former Member]

hi all,

i am sending material to my vendor for subcontracting directly from my supplier place.how to map this scenario under sap.how to generate subcontracting challan in this case.

Kindly help me out.

Regards,

velu

[Former Member]

thanks all

[Former Member]

Hi,

In subcontracting we have 2 types..one is without payment of duty and with payment of duty..anyhow iam enclosing both the scenario's..

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 auto consumption of components with 543 movement}

Reconciliation of Subcontracting Challan (J1IFQ)

Completion of Subcontracting Challan (J1IF13)

Generation of Annexure IV (J1IFR)

Note: - In this case, you have to maintain the Assessable Value for the Components to be supplied to Vendor in J1ID and also Excise Tax rates for the Chapter IDs linked with these components. So during J1IF01, system will take the Assessable Value as Excise base Value and calculates the Excise Duties by taking Excise Tax Rates.

Subcontracting under Full Payment of Duty

Creation of Subcontracting PO (ME21N)

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

Creation of Outgoing Excise Invoice w.r.t. Transfer Posting Document (J1IS) - Used to send the components to Subcontractor's. Here 57F4 Challan is not created.

Accounting Entry: -

CENVAT Input BED - Cr

CENVAT Input ECS - Cr

CENVAT Input ECS - Cr

CENVAT Suspense A/c - Dr

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

Post Excise Invoice for FG received from Subcontractor (J1IEX)

Accounting Entry: -

CENVAT Input BED - Dr

CENVAT Input ECS - Dr

CENVAT Input ECS - Dr

CENVAT Clearing A/c - Cr

Regards,

Prasath

[Former Member]

Hi

Following are the process steps.

1. Create PO on raw material supplier (vendor 1) & in the delivery address select the subcontract vendor (vendor 2)& check the box (s/c vendor)

2.Create a separate PO for s/c vendor for the processing of raw material into semifinished material

3.Prepare GR (GR1) for vendor 1 (movement type will be 101 O). Now the material stock will be with vendor 2.

4.Prepare subcontracting challan with reference to GR (with movement type 101 O) TC:J1IF01

5.After recieving the material from vendor 2, prepare GR (GR2) Movement type 101.

6. Reconcille & complete the challan. TC:J1IFQ & J1IF13

7.Capture & post the excise invoice for GR1 through TC:J1IEX

8. Invoice Verification for Vendor 1 & vendor 2. TC:MIRO

Please ensure that the customisation settings for subconracting process for movement type 101 (o).

Hope the above is inline with your requirement.

Regards,

Krishna A S V

[Former Member]

hi,

in our case there is no payment of excise for the raw material . pl .guide me.

Regards,

velu

[Former Member]

hi,

while creating a sub contracting challan for the 101 o gr documnet,i am getting the following issue .Function module "FIELD_EXIT_J_1IEXCGRP" not found how to over come this issue.

Regards

velu

[Former Member]

Hi,

In subcontracting we have 2 types..one is without payment of duty and with payment of duty..anyhow iam enclosing both the scenario's..

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 auto consumption of components with 543 movement}

Reconciliation of Subcontracting Challan (J1IFQ)

Completion of Subcontracting Challan (J1IF13)

Generation of Annexure IV (J1IFR)

Note: - In this case, you have to maintain the Assessable Value for the Components to be supplied to Vendor in J1ID and also Excise Tax rates for the Chapter IDs linked with these components. So during J1IF01, system will take the Assessable Value as Excise base Value and calculates the Excise Duties by taking Excise Tax Rates.

Subcontracting under Full Payment of Duty

Creation of Subcontracting PO (ME21N)

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

Creation of Outgoing Excise Invoice w.r.t. Transfer Posting Document (J1IS) - Used to send the components to Subcontractor's. Here 57F4 Challan is not created.

Accounting Entry: -

CENVAT Input BED - Cr

CENVAT Input ECS - Cr

CENVAT Input ECS - Cr

CENVAT Suspense A/c - Dr

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

Post Excise Invoice for FG received from Subcontractor (J1IEX)

Accounting Entry: -

CENVAT Input BED - Dr

CENVAT Input ECS - Dr

CENVAT Input ECS - Dr

CENVAT Clearing A/c - Cr

Regards,

Prasath

[Former Member]

Hi

While creating PO, In the Item details delivery address enter the vendor address ( The vendor u want to send the material directly) and click on the SC vendor

Material will be delivered directly to the SC vendor

Regards,

Raman

[Former Member]

dear ram,

how to create the subcontracting challan in this case.kindly give me the steps in detail.

Regards,

velu

[Former Member]

Hi

You can create subcontracting challan fro the material document created when goods are transffered to subcontracting vendor through T code - J1IF01

Then u can view in the JI1F13 or J1IFR and u have to reconcile the challan after receiving finished goods with J1IFQ. Here u give the doc no. of GR and year.

regards

chetan

[Former Member]

hi,

WHEN I TRY to create a mtl doc.with reference to the PO, the system is showing the error message that the material doesnt exist in the plant.i am using 541 o MOVtype for the issue of material to subcontracting vendor.

how to create a subcontracting challan in this case.

Regards,

velu

[Former Member]

Hello,

Create a Standard PO for that Rm and put delivery address as the address of the s/c vendor.

Create a Subcontracting PO for the FG to the S/c vendor and mention the RM to be consumed in that PO in materials tab in COmponents.

1. Create a storage location in your plant and do the GRS of the RM in that location against the standard PO.

2. Isssue material to s/c vendor from that storage location using 541.

3. Create a s/c challan using J1iF01 with reference to the 541 Mat document.

Once the material is received, do the GRS of the material against the Subcontracting PO.

Hope this helps.

Regards,

Arpit

[Former Member]

HI ,

i dont want to have the stock of the RM in my STG location as i am sending directly from the Supplier place to the Vendor place for the operation. pl Explain me your process in detail.

Regards,

velu

[Former Member]

Hi,

If you don't have excise for raw material then Capture & post the excise invoice for GR1 through TC:J1IEX will not be applicable for you. Please follow the rest of the process as per my earlier mail,

If you create a PO by checking the delivery to s/c vendor, then during GR (through 101-O movement) material will be posted to s/c stock. i.e material stock will be available with s/c vendor. You don't have to create a separate document ( TC:MB1B with 541) to send the material to s/c vendor.

In case if you require s/c challan then you can create with reference to document with 101 (O).Once you get back the material from s/c vendor, refer the challan, reconcile & complete the challan.

As far as payment is concerned it is done usual way.

Regards,

Krishna A S V