We are Implementing SAP for an Indian Pharmaceutical client.
Below cycle is the LOAN LICENCING process Clients follows:
Client is placing PO for RM/PM to vendor X and insist to vendor X to send RM/PM to Loan Licenser(a kind of subcontractor).Loan Licenser is manufacturing the FG and sent it back to the Company and for that they are paying conversion charge as per the Agreement with the loan Licenser .
Loan Licenser (Subcontractor) is an external company which company A is leasing to manufacture FG
Client places a Purchase order for RM/PM to vendor X and mentioning delivery address as Loan Licenser address.
GR will be done at the Loan Licenser location. Client is holds the responsibility to pay the bill to vendor X.
Query: 1.
When I am raising a PO from Client Company, How can I do my GR at Loan Licenser location?
2. Billing is done by Client along with all duties and Cenvat credit is availed by the Loan Licenser.
How to map this?
Manufacturing Process:
Company A is planning the production. The consumption details for that production are sent by LL to the company A. Then LOAN LICENCER location creates Process order u2013 WIP is recorded and FG is produced.
All this process is completed in 15 to 20 days.
Now company A want to track the above manufacturing process and need the following details.
RM/PM available with the LL
RM/PM consumed
RM/PM remaining
WIP
QC Release
FG Produced.
Once the FG is manufactured, it will be sent to the company A against the PO raised for FG by company A.
And Company A is paying conversion cost and duties for that FG received.
Please provide your inputs to MAP this process in SAPu2026