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Standard cost with Complete Sub-contracting process

Former Member
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Dear All,

Please clarify the following scenario:

We have execute Standard cost for the materials which are manufactured in sub-contracting process (we have four company codes…. Only once company code does in-house process and remaining three company codes are related to sub-contracting process… so we are executing standard cost run only for one company code which does in-house)

Maintained info record to capture sub-contracting cost, process starts as raw materials issued to sub-contracting plants and main plant receives FERT

There is no production order creation in the sending plant or main plant since all operation are done in sub-contracting company codes

Client Requirement:

In month end main company code pays sub-contracting charges to sub-contracting company codes, there is difference in this sub-contracting actual booking and info-record prices… client asks this difference has to transferred/allocate to products in main plants after receiving from sub-contracting plants…issue is we are not creating production orders in main plants so how to transfer sub-contracting variances in main plant for product wise

Regards,

Upendar Singh

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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Hi..

I think that  using material ledger is best solution to allocate difference between actual price and info-record prices to higher material if you use sap standard subcontract process.

Former Member
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Dear all,

Thanks to every one for your reply

@Hrusikesh

It is related to inter-company transfers in India which is running with a z-development program called smart-combo it will take care from sub-contracting PO creation to GRN receipt

System is updating the following entry during GRN from sub-contracting plant:

22301100             Stock - SFG         68.05 Dr.

17000110             GRIR - Conver Charge    300.00 Cr.

41000200             Cogm - Sub - SFG             68.05 Cr.

40010000             Subcon Proc chrg             300.00 Dr.

22301100             Stock - SFG         66.05 Cr.

40000900             Cons - SFG - Sub               66.05 Dr.

@Ram

Can you please send me document to:    upendar9@yahoo.com

@ Big Choi

As of now we can’t activate Material ledge… pl let know if any alternate solution

Regards,

Upendar Singh

Former Member
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I think that you should develop z-program using material ledger concept.

Refer to below sap help portal to understand the actual costing of material ledger.

Periodic Actual Costing - Actual Costing/Material Ledger (CO-PC-ACT) - SAP Library

Former Member
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Hi Upnder,

The way we are handling this by posting variance during goods receipt from sub contractor, but this subconracting this third party and inra/inter company. I have full end to end document on this process, If you want then I can send.

Regards,

Ram

Former Member
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Hello,

Can You send me also please i have similar requirement and wanted to know more about the process.

Thanks

Sushma

former_member216878
Participant
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Hi Ram,

can you share the document @sap.nitisha@yahoo.in

Regards

Nitisha

ajaycwa1981
Active Contributor
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Hi

I could not understand..

Are the companies doing sub-contracting amongst themselves?? Or doing Sub-contracting to outsiders?

Br. Ajay M

Former Member
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Dear Mr. Ajay,

Companies doing among themselves but all are separate legal entities

Regards,

Upendar Singh

former_member182339
Active Contributor
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Upendar,

i guess what you want to achieve,You need to use STO scenario more than sub contracting ? can you do sub contracting between intra /inter company legally? What country the company is?

I would like to see what other experts are saying on this.

Thanks

Hrusikesh