subcontracting

[Former Member]

hello gurus

in subcontracting process i am sending 10 kg of materials.subcontractor is

returning to me 9 kg of material then please tell me how can i show 1 kg in scrap. the process followed is

me21n

mb1b

j1if01

migo

j1ifq

j1if13.

regards

k.chhikara

[Former Member]

hello

follow the process sending X 10KG and reciving Y 9Kg

Me21n po on Y 10kg and component 10kg

MB1B sending 10Kg of X

J1IF01 creating subcontracting challan for 10 kg of X

MIGO Gr of Y for 9 KG and also consume 9 kg of X

now use

MB1B movement 542 to get back the X 1 Kg

J1IFQ reconsile both GR document no and doc no created in Above step for 542 ( this will show correct entries in Anx IV) 10 kg of x gone to vendor and 9+1 kg material returned from vendor

J1IF13 complet subcontracting challan

MB1A use mov typ 551 to scrap 1 Kg of X

J1IH material write off to create debit entry in RG23A for the scrap of 1 Kg of X material (for document no created by movement 551

this is real and legal process to be followed

but know one show the scraping entry in RG23A as it reduces ur cenvat amount.

Reward if usefull post

[csaba_szommer]

Hi Krishan,

Please give more detail.

Do you send materialA of 10 kg and you get materialB of 9 kg?

In this case you can set the BOM as following:

parent_________________children

materialB (base qty: 9kg)_materialA(item-qty: 10 kg)

BR

Csaba

[Former Member]

dears

we do not know at the time of sending we will receive 9 kg of material(semifinished) from 10 kg materials (could be bom of two materials or three materials).when the subcontractor send the subsequent forms along with semifinished product them subcontractor will define in that form that 1 kg of material gone in scrap.then how to enter received quantity and scrap quantity

[Former Member]

Hi

IF you do not know waht the maount of material you would be reciving. then you can use movemnt type 531 for receiving the scrap as a by product.

Use MIGO transaction , Create the GR for SC PO, add the new line item in that itself. For the child material you can post the full qty.

Reward points if useful

Thanks & Regards

Kishore

[csaba_szommer]

Dear Krishan,

You haven't made clear your process exactly...

If your problem is that the raw material consumption may vary you can change the to-be-consumed component qty (543) manually when GR takes place in MIGO.

BR

Csaba

[Former Member]

Hi

You need to mention 1Kg of scrap in making the PO itself with negative sign

just like byproduct

regards,

Lakhan

[Former Member]

Hi,

You have to mention in the Subcon PO a bi-product (-ve). As you recieve the goods, you post a goods reciept of the main material and scrap reciept, which you later transfer it to the scrap account after reconcillation.

Anand