Subcontracting Chalan

[Former Member]

Dear SAP Gurus,

For uploading the stock at the subcontractor's end, speacial stock indicator "O" is there along with the movement type 561 , but what about the Subcontracting chalan's which are open in the legacy system , how to deal with it , during the cutover , as it may happen against some of them some qty has come (Finished Good) and few qty is remaining,

How to take all these things into the consideration.

2ndly what all things which needs to be taken care from Excise Point of view during the upload, cutover.

Thanks & Regards

Nitin Chhabra

[Former Member · Accepted solution]

Hi

It all depends on you and ur client

1. upload vendor stock thru 561O .... After go live create challans in SAP ... All legacy challans to be closed in legacy system ... In SAP just create a PO and do GR ( for legacy challan cases)

2. Ask client to bring back all material and close legacy challans .... upload stock with 561 and create PO and challans in SAP

3. Just upload stock with 561O ...to a different storage location(just virtual)... ask client to close legacy challans in legacy .... in SAP create PO, do 541 and do GR for legacy challans ...

[Former Member · Accepted solution]

Hi Sanjoo,

I have few doubts on very helpful points suggested by you, please find the same after each point.

1. upload vendor stock thru 561O .... After go live create challans in SAP ... All legacy challans to be closed in legacy system ... In SAP just create a PO and do GR ( for legacy challan cases)

If we are uploading the stock thru 561O and creating the Subcontracting chalan after Go Live , then how the 180 days funda will be taken care , system will be calculating the 180 days , from the day we are creating the subcontracting chalan.

and how to do the GRN refrencing the chalan in the legacy system

2. Ask client to bring back all material and close legacy challans .... upload stock with 561 and create PO and challans in SAP

Practicaly it will not be possible for my client to bring the stock back and closing legacy system's challan. , even if we virtualy bring back the material , and close all the challans in legacy system , and if we are creating the subcontracing chalan in SAP, how the 180 days funda will get fulfilled. whether is it legal from Excise Point of view???

3. Just upload stock with 561O ...to a different storage location(just virtual)... ask client to close legacy challans in legacy .... in SAP create PO, do 541 and do GR for legacy challans ...

561O with different storage location , I dint get this point , please clarify

Request you to please clarify above points and suggest the best way out.

Thanks & Regards

Nitin Chhabra

[Former Member · Accepted solution]

Hi

1. upload vendor stock thru 561O ....as and when material arrives as per legacy PO and challan ..... close challan in legacy.... create a PO in SAP and do GR.(no challan) .... create a challan in SAP for totally new cases ... no more challans in legacy.

2 U close legacy challans virtually .... means legacy is end .... now create a PO,do 541 and create a challan in SAP .... means everything is fresh ... lotsa work .. i agree

3 this is similar to 1st step .... but upload vendor stock to a virtual location (later block it) in ur plant ... by 561 ... so tht u can differentiate between ur stock and stock with vendor ..... Here u will have to do 541 everytime material arriving as per legacy challans .... dont create any challan in SAP for legacy .....

Now u decide which one is best for u ......

[Former Member · Accepted solution]

Hi sanjoo,

I am finding first one is more logical , infact I wanted your views also.

Now If we go as per your first point- close the legacy challan as when the material is coming as per the Old PO and , and simultaneously creation of the PO in SAP also and doing GRN, without any reference of the challan.

would't it effect anywhere , as far as accounting is concerned is it the right process, and also for this to happen , client has to run 2 ERP side by side , which is actualy not recomended.

In the 3rd point, GR as per the Legacy Challans in SAP, how it is possible to do the GRN with referencing to the Legacy Chalans.

Basicaly I wanted to know is subcontracting challan is only for the qty reconcilliation only.

Is any accounting got posted when we compelete the chalan..

What i wanted to know, is it worthful to go for 3rd point without any accounting /legal impact.

Thanks & Regards

Nitin Chhabra

[Former Member · Accepted solution]

Hi

1. Running 2 ERP side by side .... just to close challans .... nothing else

2. I didnt say GR wrt legacy challan .... i meant GR in SAP as per legacy challan qty .... close legacy challan in legacy.

[former_member824495]

Hi,

Ask client to take back the material from subcontractor,close all the challans(57F4) from their legacy.

Upload the stock with 561 only. Then issue the material with 541,create challan.

In cutover, we have to upload the excise balance (which are the closing balances of the last month).

So that it will appear in the register as opening balance in the next month.

Regards,

Piyush