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Former Member

Subcontracting Quantity reconciliation

Hi, this is Sujith

Please help me with the subcontracting reconciliation. Scenario is

We order steel pipes to the vendor which they directly reaches the jobworker.

We raise the subcontracting order to the jobworker to make catridges.

For every 10mts of steel we know 13 catridges can be made and 0.25 mts is scrap.

This scrap will remain with jobworker since we dont have use with it, But we bill the jobworker for 25 RS/mtr of scrap.

My problem is:

I create a BOM

100 nos of catridges : 76.92 mts of steel (+ve) and 1.92 mts of steel (-ve).

In PO to vendor i give delivery address as the jobworker. So GRN of this PO result in the stock to the subcontractot (101 O)

When i do the GRN for the jobworker PO, the catridge will be in the stock, consuming the actual qty i give in the BOM (here 75 mts).

Rest (1.92 mts) is with the jobworker. How to handle the stock with subcontractor reconciliation per jobwork order.??

sapmmlearner

Edited by: sapmmlearner on Apr 28, 2011 2:15 PM

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1 Answer

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    Former Member
    Apr 28, 2011 at 12:52 PM

    Hi dear,

    while doing subcontracting PO make sure the component for that material will be consumed as per BOM defined in the system or actual consumption is to be booked.

    1-If BOM has to be exploded then it should balance the base qty i. e if my final product is ordered for 100kg then my components should be balanced to 100kg...c1=60kg,c2=45kg,c3=-5kg(scrap).

    2-If u need to adopt as per actual consumption then click on "Component" button in Subcontracting Order and put the corresponding requirement with balancing.

    After this u need to transfer those components to the subcontractor through 541 movt. w.r.t the Subcontracting PO.now chk in MMBE,it will show stock provided to vendor.

    Now make challan through J1IF01.

    After getting the final product from subcontractor make GR so that for that 100 kg of final product the components will be automatically balanced.

    Remember if the scrap generated at sucontractor is saleable then it should be made GR along with the final product.For that u need to add that salable scrap code in the next line item of Sub.PO with its corresponding Components.

    After making GR then go for qty reconcillation thru J1ifq.

    And at last when full qty is made GR then complete the challan.....remember for 180 days excise is not liable...

    I hope u understand the Scenario.If not then Pls let me know

    Thanks & regards,

    Bijay Pradhan

    SAP-MM Consultant

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