Subcontracting Issue

[Former Member]

My client subcontracting schnerio is little bit different. In general case we give some materials like A, B & C to vendor for subcontracting & get one material D. But here we give only one material A to vendor for subcontracting & after processing on A vendor return three materials B, C & D. How can we handle this issue?

[BijayKumarBarik]

Hi,

You have three finished products as materials B, C & D but you have only ONE raw material A.

Create BOM in t.code: CS01 for each inished products ie.....materials B, C & D and keep  needed raw material A for each case.

Create ONE subcontract PO  for three materials B, C & D in three line items(10,20 and 30).

Now Supply material A to vendor with t.code: MB1B with 541 movement type

Receive materials B, C & D with t.code: MIGO with 101 movement type.

Regards,

Biju K

[Former Member]

When we give the material A to vendor for subcontracting at that time we give some specifications that after processing on material A, 50 % B material, 10 % C & 5 % D material will be produced, small flactuation in materials percentage is acceptable but big difference is not accepted. we give the subcontracting charges on Row material (A) quantity.

If vendor return 40 % B, 20 % C & 5 % D material in that case we have to change the BOM & it is big difference in materials percentage which we want, so we deduct some charges because B material has higher cost than C material. So we want a track to see what was the previous price of subcontracting after changing BOM, Because after changing the BOM we reduce the charges also due to material quantity difference.

[former_member763168]

Hi

Make three line item PO

Line one in po send material A receive B

Line two in po send material A receive C

Line three in po send material A receive D

Regards

Chetandeep Singh

[Former Member]

It is not the correct way. for the clearification i just give you one live example of RICE industry.

If i give Paddy(Dhaan) material to vendor for subcontracting then vendor process on paddy & it will convert in two or three shapes i.e full rice, two piece rice & mini broken rice. These three materials are seperate materials for us & material codes are seperate for all three materials.

EX.

Paddy - 100 tn give to vendor for subcontracting

Recieve the below materials

Full Rice - 40 tn

Two piece rice - 15 tn

Mini broken rice - 5 tn

[former_member763168]

Hi

Then you need to take help from PP guy. Make Bom of material according to your requirement as stated.

When you will explode BOM in purchase order it will show all the items.

Regards

Chetandeep Singh