Subcontracting Senario

[Former Member]

Hello,

There is one raw material SS rod 70 mm diameter for which code number is A123 for example...

This raw material gets cut in to 100 mm length and its code number becomes A123C for example

This A123C is to be send to subcontractor for facing operation and turning operation..

But my material code number should not change further...for machining activities at subcontractor, Clients business process forced to keep same material code number even it is going at subcontractor...

I want correct inventory valuation also.

How to Map this .

Kedar

[Former Member · Accepted solution]

you can try split valuation so that u can check stock and valuation befor and after subcontracting. try this, this may solve ur issue

Split val for A123C material with val typ before and after subcontrating

[raviraj_sharma]

You can mantain two valuation types A and B for this material .A will be used for the A123C which is cut from A123, and B will be used for the A123C which comes from subcontracting. You will have to mantain a Recursive BOM for A123C in the subcon PO . This way , you will issue A123C with val typ A to the subcontractor and receive the same A123C with valuation type B.

This will take care of both your requirements( 1. Subcontracting with same code . 2. Valuation)

Raviraj

[Former Member]

Hi,

How the material will be identified after getting back from subcontracter? Because the physical apperance will be different. It has to be identified with different material number.

Secondly u said diameter is 70 mm, what is the length? (before cutting the rod into 100 mm lenght)

-Saleel Kulkarni