Issue on Order problem

[Former Member]

Hi,

We create a Reservation for 100 qty, also create a Subcon PO with 100 Qty and issue 80 qty. on Order thru 261 movement...

Now we want to see 20 qty, that was not used...

Please let me know, how can we see this...

Thanks...

[Former Member · Accepted solution]

movement type to issue stock to subcontractor is 541 and you can't create reservation for this movement type. 261 is  consumption of stock with reference to order... there is no link between your subcontracting issue and 261 movement type. If you've done this wrongly, issue the subcontracting stock through 541 movement and you can track the stock through ME2O.

or

If you want to track the reservation made for consumption of order(261) and to check the open quantity, use MB25 tcode

[Former Member · Accepted solution]

Thanks Senthil for valuable information..

I think we are doing the wrong process for Service - External Subcontracting Process.

Please tell me the step-by-step process for this... (if required, i will send step, which we are doing)..

thanks...

[Former Member · Accepted solution]

HI,

are you asking about Sub-contracting process or External services Process..?

below mentioned process is for Sub-Contracting Process: Sending Semi finished/raw materials to vendor and vendor returns finished goods after processing.

Subcontracting Process Goes Like below mentioned Process:

• Maintain the BOM for the finished goods or the material produced by the Sub-con vendor
• Create a Po for Finished product. system will determine the Goods/Components that are to be issued to vendor. same can be seen in PO material data tab
• issue goods to vendor. go to MIGO or MB1B, Select Transfer posting against PO. Movement Type 541
• you can check the stock provided to vendor in ME20/MBLB/MMBE
• once vendor sends back the finished goods, do goods receipt using MIGO
• MIGO - Goods Receipt against Purchase Order. Receive the finished goods with Movement type 101 and consume the stock available with vendor with 543 Movement type
• if vendor sends back the unused raw/semi finished goods, take them back using 542 movement type

hope this is clear.

Regards,

Message was edited by: Don ..!!

[former_member331858 · Accepted solution]

Hi Anil,

Could you tell your step by step process..

Thanks

Vijay

[Former Member · Accepted solution]

For ref. please see this process...

[Former Member · Accepted solution]

did you try the processes explained by others? let us know if you have any doubt.

[Former Member]

Hi Anil,

find below the SCO process step by step.

Subcontracting
can be done with payment of duty and w/o payment of duty.



Subcontracting Process



Subcontracting without Payment of Duty



Creation of Subcontracting PO (ME21N)

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

Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)

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

Reconciliation of Subcontracting Challan (J1IFQ)

Completion of Subcontracting Challan (J1IF13)

Generation of Annexure IV (J1IFR)

Note: - In this case, you have to maintain the Assessable Value for the
Components to be supplied to Vendor in J1ID and also Excise Tax rates for the
Chapter IDs linked with these components. So during J1IF01, system will take
the Assessable Value as Excise base Value and calculates the Excise Duties by
taking Excise Tax Rates.



Subcontracting under Full Payment of Duty



Creation of Subcontracting PO (ME21N)

Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)

Creation of Outgoing Excise Invoice w.r.t. Transfer Posting Document (J1IS) -
Used to send the components to Subcontractor's. Here 57F4 Challan is not
created.

Accounting Entry: -

CENVAT Input BED - Cr

CENVAT Input ECS - Cr

CENVAT Input ECS - Cr

CENVAT Suspense A/c - Dr

Capture Vendor Excise Invoice at
the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)

Post Excise Invoice for FG received from Subcontractor (J1IEX)

Accounting Entry: -

CENVAT Input BED - Dr

CENVAT Input ECS - Dr

CENVAT Input ECS - Dr

CENVAT Clearing A/c - Cr



Master Data

MM01- Material Masters for Components and FG

XK01 - Vendor Master (Subcontractor)

CS01 - BOM for FG

ME11 - Purchase Inforecord for Subcontracting

[Former Member]

We don't have CIN in our organization....

[Former Member]

then just follow Don's process. I just one point. BOM is not mandatory you can also enter the components directly in PO.

[Former Member]

In MMBE..double click on the stock qty at plant level.

You will be able to see the balanced reserved stock as well as the On- Order stock (100 for Subcontracting PO).

Rajesh

[Former Member]

pls clarify, reservation and subcontracting, how you are linking this 2?

Regards,

Dakshesh