How to transact as a subcontractor

[Vikas_th]

We want to do subcontractor transactions i.e. receive material for conversion (sent by mtrl owner), do conversion to required shape & size, send back ready partial lots to the mtrl owner through challan and finally raise service invoice (conversion charges) periodically say monthly.

We are aware of the subcontracting cycle in SAP which is mtrl owner's cycle BUT how it is carried out at subcontractor's place.

Anybody if aware, please share.

Thanks in advance.

VK Pandey

[former_member627950]

Hello Devendra,

As I understand your question, you want to know what the process is if you are a subcontractor and doing a value addition for your customer.

If my understanding is correct, then this process is called 'Job work process'. You receive material from Customer, you do value addition and send the enhanced material back to customer. Here, you have to receive those materials as Non-valuated goods as they are not your inventory.

There are multiple answers available on SCN. So, I request you to search with keywords 'Job work process'. Find one link here;

https://answers.sap.com/questions/9509112/job-work-process.html