Subcontracting Process for GST Disclaimer: This document is a draft, and provided as a reference . This document is not to be considered final, and all information contained herein is subject to change. As such, this document is not to be quoted, cited in any reference, or used by anyone for any purpose other than as a draft document
Table of Contents 1. 1.1
With Challan Challan .......................... ........................................ ............................ ............................ ........................... ........................... ............................ .............. 2 With Challan – Cancellation Process ...................................................................... 3
2. Without Challan ............................................................................................................ 4 Disclaimer Disclaimer .......................... ........................................ ........................... ........................... ............................ ............................ ............................ ......................... ........... 5
You can run Subcontracting process in one of the following ways: With Challan Without Challan
1. With Challan 2. Create the subcontracting PO using the transaction ME21N, with item category ‘L’ 3. Create the material document with 541 movement type using the transaction ‘MIGO’. 4. Execute the transaction ‘J1IGSUB’.
5. In the Processing tab, you can either ‘create challan’ or ‘display’ existing challans. 6. In the next screen, you can select the material document (541 movement type) and choose the ‘With Challan’ button to create the billing document (Proforma invoice).
7. Create the goods receipt for the subcontracting purchase order, using transaction ‘ME21N’. 8. Execute MIRO for the invoice verification for the service charges paid to the subcontractor. 9. For the reconciliation of challans created, execute the transaction ‘J1IGRECON’. 10. There are two options provided for reconciliation: First In, First Out (FIFO) – It will automatically assign the existing challans to the goods receipt document.
Manual – Enter the challan number to reconcile the challan for the material document.
11. Once the data is verified, click ‘Save’ to update the reconciliation table.
GR Open Quantity – Goods receipt open quantity Challan Quantity – Quantity available in challan Reconciled Quantity – Challan quantity reconciled against the Goods receipt quantity GR Remaining Quantity – Remaining quantity of goods receipt after challan reconciliation Sub. status – Status of the subcontracting challan (F- Fully Reconciled, P- Partially Reconciled)
1.1
With Challan – Cancellation Process
If the subcontracting challan is already created for a 541-material document, then the 541-material document cannot be reversed until the challan is cancelled first. If the challan is already reconciled against the subcontracting goods receipt document (543 movement type), then the challan cannot be cancelled.
2. Without Challan 1. Create the subcontracting PO using the transaction ME21N, with item category ‘L’ 2. Create the material document with 541 movement type using the transaction ‘MIGO’. 3. Execute the transaction ‘J1IGSUB’.
4. In the Processing tab, you can either ‘create challan’ or ‘display’ existing challans. 5. In the next screen, you can select the material document (541 movement type) and choose the ‘Without Challan’ button to create the billing document.
6. Create the goods receipt for the subcontracting purchase order, using transaction ‘ME21N’. 7. Execute MIRO for the invoice verification for the service charges paid to the subcontractor. 8. For the consumed materials create Vendor invoice through ‘FB60’ . Note: You can create ’With Challan’ and ‘Without Challan’ billing in the same screen. To do so, select the material document(s) and choose the With Challan and/or the Without Challan buttons.
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