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author's profile photo Former Member
Former Member

subcontracting for a non-excisable plant

Hi Gurus,

Pl. help me in the following scenario.

My client wants to procure some material on sub-contracting basis but this plant is non-excisable plant.

How this plant should do the subcontracting cycle?

Whether he can raise 57F4 document or not?

Pl. give your valuable feedback regarding this cycle in detail.

Regards,

Amol

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  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Sep 07, 2011 at 05:05 AM

    Hi,

    As per excise law,all the subcontractings are subject to excise free within 180 days.

    Thanks & regards,

    Bijay Pradhan

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 07, 2011 at 05:19 AM

    Hi,

    No need of creating 57(F)4 FORM AND COMPLETING THIS. A sabove said the subcontracting is nonexcisable with in 180 days. The process to map uo this scenario as follows.

    Master Data Material Master Should be available MM01

    Master Data Material Master Should be available MM01

    Vendor Master Should be available XK01

    Create components (BOM) CS01

    Process Steps

    1 Create Purchase order or Contract release order Me21N

    2 Create Delivery for Sub-contract ME2O

    3. PGI Sub-contract Delivery VL02n

    4 Post goods reciept for finished goods

    5 Post Invoice verification for Subcontractor MIRO

    I hope it will cleasr your doubt. Thanking you.

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 12, 2011 at 12:47 AM

    Hi.

    After doing PGI, the stock physically goes to the subcontracting venndor. But the stock will be as valuated stock at plant, showing subcontracting stock provided to vendor. NO ACCOUNTINGS will get created. We will do PGI in VL02N with the 541 Mvt type.During GR of finished product from subcontracting vendor PGI of materila provide to vendor will be executed automatically along with GR. Ihope this will give clarify your doubt. Thanking you.

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