Subcontracting Business process:

Tcodes-

ME21n – Create Purchase Order

ME29n – Release PO (If Release strategy is there)

MB1B – Transfer the material of components through movement type 541 against Purchase order

J1IF01 – Create Subcontrcating Challan with refernce to the document posted by movement type 541

MIGO – Enter the GRN with reference to Purchase order and refer the subcontracting Challan in the excise tab at hedaer level.

MIRO – Invoice verification.

Create Sub-contracting PO by ME21n with doc type subcontracting PO and item category L. Click on the button components to enter the BOM.

Enter the components in the material item tab and define the BOM. In case scrap quantity you need to define the quantity in (-).

Transfer the material against the PO by using MB1B, 541 movement type.

Save the Doc.

Create sub-contracting challan by using J1IF01

Save the challan.

Enter GRN against PO.

Refer the subcontracting challan at header level in excise tab.

Save the GRN

Reconcile the challan with J1IFQ

Click on the button to assign the quantity

Now the assigned quantity is equal to the open quantity and save it.

Now complete the challan by J1IF13

And save it

Challan has been saved

Get back the Scrap or any other material which is lying with vendor, we can use MB1B with movement 542 and special indicator O.

Enter the vendor code, material and quantity and save it.

Document has been posted.