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Former Member

Subcontract Challan

Dear All,

Can anyone please provide a brief explanation to "What is a Subcontract Challan", what is its usage along with the Transaction Codes that have to be executed. Thanks.

I have configured the process flow for subcontracting and now I would like to know the functionality of the Subcontract Challed.

Thanks in advance.

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4 Answers

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    Former Member
    May 20, 2010 at 09:29 AM

    Hi,

    In Indian subcontracting process when you issue materials to a subcontractor, you need to keep track of what materials you have issued and when they have to be returned by subcontractor. The reason for this close monitoring has to do with Indian tax law(Under excise law 57AC), when you send materials to a subcontractor for processing, you are not required to pay any excise duty, even though the materials have left your premises. However, if the materials have not been returned to you within 180 days specified by the law, you will have to reverse any excise credit that you posted when you have purchased the materials. When you send material out of your factory premises you need to send with 57F4 Challan.

    Process Steps:

    u2022 Creation of Sub Con PO -ME21N

    u2022 Issue of components to sub con vendor-MB1B

    u2022 Creation Sub-Con challan with respect to the above Material Document-J1IF01

    u2022 GR for the Finished goods from Job Worker-MIGO

    Printing of subcon challan-J1if11

    u2022 Reconciliation of Sub con challan -J1IFQ

    u2022 Completion(Closing) of Sub-Con challan u2013J1IF13

    u2022 Report of Annexure IV-J1IFR

    If the material didn't recv within 180 days then the subcon challan has to reversed using J1if13 t-code(have to reverse eqivalent part 2 entries that was taken as a excise credit in J1iex). However the above entry can be taken back as recredit in the same t-code if you expect the goods to recd after 180 days.

    The assesable value that has to printed in the subcon challan has to be maintained in J1iD.

    regards,

    S.S.Kumar.

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    Former Member
    May 20, 2010 at 08:38 AM

    Hi,

    The 57F4 Subcontract Challan is posted with reference to 541 Movement type material document number.

    subcontract Challan can be posted using J1IF01 Transaction code. Use the following t codes for subcontracting process

    J1IF11

    J1IF12

    J1IF13

    J1IFQ

    J1IFR

    Edited by: venkatesh kumar on May 20, 2010 2:10 PM

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    • Former Member

      Hi,

      Is the process of creating these Subcontract Challan mandatory for the Subcontracting Process? Or is the creation of Subcontract Challan only for recording the detail information regarding the Issues and Receipts for the Subcontract Order.

      Many thanks in advance.

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    Former Member
    May 20, 2010 at 08:54 AM
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    Former Member
    May 20, 2010 at 09:55 AM
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