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Subcontracting process between two plants

former_member357396
Participant
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Hi,

   Plant 2  creates a subcontracting purchase order and does transfer posting and challan and sends to plant1 raw material code x and sfg code used y

In plant 1 i am creating a sales order for sfg with different material code L

Doing mb1c 501 e movement type to inward the raw material with different code M (Because plant 1 also has the same raw material)

So the raw material becomes the sales order stock

In plant 1 i have a created a bill of material and routing for L and component as M

For the raw material i maintained MRP TYPE ND (Since i am inwarding the stock through mb1c 501 e)

Now i run the mrp in plant 1 for the sfg material the procurement proposal for raw material will not be created and for sfg the planned order is created with respect to sales order

I convert the planned order to production order with sales order related and perform goods issue and then migo. Now the sfg is formed which has to be sent to plant1

Now i create a picking, delivery, billing with respect to sales order with material code L

Now i plant 2 the migo will be done with respect to subcontract purchase order with material code y

Now the problem is after the production process the raw material stock(which is in the form of sales order stock) is left over now i need to send to plant2 how can i send it. It  is a sales order stock and also in different material code as mentioned above M

Is this process correct  ?

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Answers (1)

JL23
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former_member357396
Participant
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HI,

  How to return the left over stock to plant2 which is sales order stock.

Regards

Badari

former_member357396
Participant
0 Kudos

HI,

  How to return the left over stock to plant2 which is sales order stock.

Regards

Badari

former_member357396
Participant
0 Kudos

HI,

  How to return the left over stock to plant2 which is sales order stock.

Regards

Badari

former_member187965
Active Contributor
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Hi,

This is not a correct process. You can not receive valuated raw material stock in plant 1 with '501 E' because the inventory still is of plant 2. You can follow the below steps,

1) Create a dummy vendor code for plant 1. Create non-valuated (UNBW) material codes for input and output material.

2) Unit 2 creates sub-contracting PO with dummy vendor code (created in above step)

3) Child material transfer to unit 1 through MB1B with 541 mvt type

Below process is just for quantity tracking in plant 1

4) Receive child material (non-valuated material code which is created in step 1) through MIGO with 501 mvt type or through MB1A with 202 mvt type. As this material is non-valued system will not generate any accounting entries.

5) Convert the child material to parent material with 309 mvt type (No accounting entries)

6) To send parent material to unit 2, issue parent material to cost center with MB1A - 201 mvt type. Create non-returnable gate pass with reference to the material document generated. Send material to unit 2 with this non-returnable gate pass.

7) After receiving material in unit 2 - post goods receipt with reference to sub-contracting PO and non-returnable gate pass which is received with material from unit 1.

Test this process and let me know if this works in your case.

former_member357396
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What about the production process.we have to create a production order

former_member187965
Active Contributor
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Hi,

You can not use production order for non-valuated materials because of costing prerequisite. If you want to use production order process then you have to create valuated material codes but with very small amount in material master, for ex. 0.01.

former_member357396
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Plant 2  paying to plant 1 for the work done. Our client also doing subcontracting buisness for outside customer other than plant2. Will the process be same for other customer also

former_member187965
Active Contributor
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Hi,

Yes, but you have to create materials process wise with 0.01 price in material master.

former_member357396
Participant
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But how can i monitor that sepeately the customer stocks for outside customers

former_member357396
Participant
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Hi,

   What is the process for excise challan (57F4) . While returning the material by issuing to the cost center will it take care of the excise challan for reconcillation.

Regards

Badari