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Former Member
Apr 11, 2010 at 04:49 AM

Subcontracting scenario

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Hi Experts,

We are having a subcontracting scenario in automobile industry -

1.The FG consists of a component 'X' say length of X is 200 mm, which in turn have raw material Y with different material code.

2. We are sending material Y to the subcontractor and receiving back material X.

3. How can we get the accountability of bi product Z at vendor end which is produced during processing at vendor as Y=X+Z?

4. Where should I maintain the parting allowance for raw material Y?

The requirement from client is the calculation of end bits(Z) at vendor end at month end, so that they can take it back from subcontractor and sell it.

Regards

CS