Billing Qty in case of Subcontract process

[former_member541431]

Hi

We sent 100 Kg material to subcontract vendor for Job Work. Weight gain take place and vendor return us 110 KG. what our business requirement is Inventory posting during MIGO should be Equal to Actual wt Received 110 KG but Billing Qty should be equal to quantity sent to vendor during Mov 541.Because our Agreement is that we will pay the price of material we sent to vendor for Subcon , not the qty we recieved from vendor.

Plz Suggest

[former_member541431]

Hi

solution proposed is that change the agreement .which was previously Rs 1/KG and for 110 kg billing required INR 100 Now Revised agreement is that Rs 0.9/KG and for 110 Kg It will be Rs 100. Assume wt gain is fixed 10%.

[vijay2006ece]

Hi,

I think we can go for general subcontracting process only.
If we are always giving 100 KG material and getting 110 KG material from subcontractor. Then create two materials and assign Bom Parent : Component ratio as 1:1
(If we consider same material for sending and receiving, there will be a confusion in identifying 110 KG material and 100 KG material)
As per standard process, GRN happens as per the parent, component ratio which is 1:1 (541 mov. qty matches to 101 qty), provided there should not be any subsequent adjustments. Please verify.