JOB WORK SECANRIO.

[Former Member]

Dear Gurus,

We recevie a material for Job Work in our plant .to process this material we have use certain of our in house raw materials and then send it back after processing .

the material coming into our plant is enter as Non Valuate material as its coming for Job work..

the raw material in our plant which we are consuming is valuted materials.

My query is can we can we include the these valuated raw materials in the BOM of non valuted material code and consume them via a Process order ,when we create Job work perocess order for this JOb work.

Thanks in advance

Regards

Ram

[ajitkumar · Accepted solution]

this query was better suited for PP

you can have valuated material as items in a BOM for NV material.

in the prod order, system will ask for the settlement rule when NV is header material

Even if you have all the items of NV category, if you are running labor and overheads into the order, the order will carry cost.

settlements differ for header FG and NV materials.your CO consultant will be able to guide you on that.

[Former Member]

Check you can add non valuated items and valuated items in BOM.

Vijay

[Former Member]

Your rate should be inclusinve of labour charges + Your Valuated material rate

vijay

[Former Member]

Assumed answered

[former_member533946]

Hi dear,

You can add the valuated material in BOM. But ideally you should not do so as you are working for other party he must supply you all the material and you dont have to use your material.Specially if the party who is giving you matetrial is working in EOU or SEZ and you are working in domestic territory.

[former_member187989]

Please close this thread.Better post it in [ ERP Manufacturing (PP) |;

to get more responses.

[Former Member]

You should be able to do that. Did you try creating a BOM? Are you receiving any error?

Just to confirm, your scenario is that of SAP MM subcontracting where you are the subcontractor.

Lakshman

[Former Member]

Hi Lakshman,

thanks for the reply

you are right.we are the subcontractor.

the material comes into our plant from another party and we process the material in our but we use certain our material.

when we create BOM there no error as such.

will there be any costing or service tax issue or sale tax issues in this case

Thanks in advance

Regards

Ram

[Former Member]

Basic Question: After using valuated child material how header material in BOM will remain non valuated?

Can you please explain practical scenario?