Scribd
Upload
131 views8 pages

Subcontracting Process Guide

1. The document outlines the subcontracting/job work process which involves assigning material and vendor codes, creating a purchase requisition and PO, generating a challan for the PO, receiving goods against the PO through a material document, and reconciling the challan. 2. Key steps include extending material and vendor codes to the appropriate sales and distribution channels, creating a customer master for the vendor, issuing a purchase requisition and PO with correct document types, generating a challan for the PO using transaction J1IGSUBCON, receiving goods against the PO, and reconciling the challan. 3. Transactions like ME21N, MIGO, MB1B, J1

Uploaded by

biswajit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
131 views8 pages

Subcontracting Process Guide

1. The document outlines the subcontracting/job work process which involves assigning material and vendor codes, creating a purchase requisition and PO, generating a challan for the PO, receiving goods against the PO through a material document, and reconciling the challan. 2. Key steps include extending material and vendor codes to the appropriate sales and distribution channels, creating a customer master for the vendor, issuing a purchase requisition and PO with correct document types, generating a challan for the PO using transaction J1IGSUBCON, receiving goods against the PO, and reconciling the challan. 3. Transactions like ME21N, MIGO, MB1B, J1

Uploaded by

biswajit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Subcontracting/Job work Process

1. Assign Plant Code/Sales Area/Distribution Channel


to the Material Code.
Example:
Plant Code: VI07
Sales Area: 1000
Distribution Channel: 50
Header Material Code: 1200045257 --- LID,SPIN,MULTIE 6800,GLOSSY WHITE
Child Material Code:
1100006826 POLYPROPYLENE,B400MN-123
1100076981 MASTERBATCH,PP,GLOSSY WHITE-123
1300010863 TAPE PROTECTIVE,340MM X 200MTR

Extend Material Code to Sales & Distribution channel 50


2. Maintain Customer for a Vendor
 Create a Customer master with the necessary details (Partner Function,
Recon Account etc) for the sales area assigned
 The Subcontracting vendor must be assigned a customer number.
Example
Vendor Code: 250021
Vendor Name: VIVEK POLY PRODUCTS

Customer Code: 30037


Company Code: 1000
Sales Org.: 1000
Distribution Channel: 50
Division: IC
Customer pricing procedure: 4 ----- Subcontracting
Prerequisite:
 Master Data -Info Record /Source List/Material BOM for Header
Item/Quality Info Record .
 Prerequisite for Child Item:
• Material Code extends to Sales Organisation (Example Company
Code 1000 --- Sales Org. 1000) and distribution Channel 50 – Stock
Transfer.
 Vendor Code -Account group- JWLC --Factory job work Vendor
• Vendor as a Customer extends to ales Organisation (Example
Company Code 1000 --- Sales Org. 1000), distribution Channel 50
and Division IC – Stock Transfer.
• Customer Pricing Procedure 4 --- Subcontracting to Customer.
• Moving Average Price is considering stock transfer for Child item.

Process:
 Purchase Requisition --- PR Type ZRM – RM Manual PR & Item Category
L --- Subcontracting
 Purchase Requisition Release as per business process
 PO Creation with reference to Purchase Requisition and PO Doc Type SUBC-
Subcontracting PO.
 Po Release as business process

Create subcontracting PO using transaction ME21N, with item category ‘L’.


Po No. : 3440000079
Create material document with 541 movement type using transaction
‘MIGO’/ 'MB1B'.

Material Document No. : 4940007516/2017


Execute transaction ‘J1IGSUBCON'
 In the Processing tab, you can either ‘create Challan’ or ‘display’
existing Challan.
 Input transaction code
o Company Code : 1000 (Mandatory Field)
o Plant Code : VI07 (Mandatory Field )
o Material Doc. : Enter 541 Material Document no
Example
Company Code: 1000
Plant Code: VI07
Material Document No. : 4940007516

Select all line item and click to tab Create Challan


Click to Challan No.

 Create the goods receipt for the subcontracting purchase order, using
transaction ‘MIGO’.
 PO No. 3440000079 and Enter Goods Receipts Movement Type
Material Document No. : 5040002094 2017

 Execute MIRO for the invoice as per business process


 Quality Inspection as per business process

For the reconciliation of Challan created, execute the transaction


‘J1IGRECON’.
There are two options provided for reconciliation:
First In, First Out (FIFO) – It will automatically assign the existing Challan to
the goods receipt document.

Manual – Enter the Challan number to reconcile the Challan for the material
document.
Save

You might also like