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Former Member

Movement type for subcontracting jobs


tool room -

dies manufacturing

3types of subcontracting is done.

1. wirecut

2. heat treatment.

3. Machining

I issue the material on weight basis.

for heat treatment the subcontractor charges according to weight of the material i.e (weight before H.T - weight after H.T ) X cost per unit weight.

for wirecut and machining the subcontractor charges on hourly basis. where as i have issued the material on weight basis.

  1. how the Purchase Order can be created for this situation

  2. What movement types can be floowed for GI and GR for subcontracting jobs.

Moderator message: Locked. Reason: subcontracting topic has been discussed many times. Points will be unassigned.

Edited by: Csaba Szommer on Jun 27, 2011 1:54 PM

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1 Answer

  • Posted on Jun 27, 2011 at 11:11 AM


    Subcontracting Process: -

    - Creation of Subcontracting PO (ME21N)

    - Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)

    - Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and autoconsumption of components with 543 movement}

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    • Former Member

      does this unit of issue of material have anything to do with the payment settlement while creating purchase order.

      We are facing problem with the material movement for wirecut and machining subcontracting jobs. The PO created are not able to settle the subcontractor payment. So while goods receipt, we are cancelling the PO, in result the material comes and sits in our stock as it is, as if no operation has been done on the materials.

      Scrap valuation is not being done due to the same case.

      What u suggest??

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