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