Subcontracting Process with

Challan

Contents
1. Material Master : MM01........................................................................................................................... 2
2. Define Shipping Data for Plants ................................................................................................................ 4
3. Create Customer: XD01............................................................................................................................. 5
4. Create Vendor Master: XK01 .................................................................................................................... 6
5. Create Subcontracting Purchase order: ME21N ....................................................................................... 6
6. Transfer posting of material to Subcontracting Vendor: MIGO/ MB1B. ................................................. 8
7. Subcontracting Challan : J1IGSUBCON.................................................................................................... 10
8. Display Subcontracting Challan : VF03 .................................................................................................... 11
9. Goods Receipts: MIGO ............................................................................................................................ 12
10. Quantity Reconciliation of Subcontracting Challan’s : J1IGRECON ...................................................... 13
11. Invoice Verification: MIRO .................................................................................................................... 15
12. Subcontracting Challan: J1IGSUBCON................................................................................................... 16
Configurations ............................................................................................................................................. 17
13. Define Billing Types ............................................................................................................................... 17
14. Pricing Procedure determination.......................................................................................................... 18
15. Copy Controls: VTFA.............................................................................................................................. 19
16. Maintain the view J_1IG_V_SUBINV ..................................................................................................... 21
 Subcontracting Process with
Challan

1. Material Master : MM01

Enter
 Subcontracting Process with
Challan

Enter sales org and Distribution channel which maintained in the plant shipping data configuration
and customer master.

Tax classification must be “0”.

Sales: Sales Org. Data 2 View

Maintain Item category Group NORM.

 Subcontracting Process with
Challan

2. Define Shipping Data for Plants

OLME> Purchase Order > Set up Stock Transport Order > Define Shipping Data for Plants

Click on details

The supplying plant for a Subcontracting process must be assigned to a sales organization, Distribution
Channel and Division.
 Subcontracting Process with
Challan

3. Create Customer: XD01

Create a Customer master with the necessary details (Partner Function, Recon Account etc) for the sales
area assigned to plant in step 2.
 Subcontracting Process with
Challan

4. Create Vendor Master: XK01

In Control tab maintain customer code which is defined in the step 2.

5. Create Subcontracting Purchase order: ME21N

 Subcontracting Process with
Challan

Click on components

Sending components will be maintained

Maintain tax code to determine GST tax components > click on taxes.
 Subcontracting Process with
Challan

GST Condition records will be determined based on condition record maintained in FV11 transaction.

6. Transfer posting of material to Subcontracting Vendor: MIGO/ MB1B.

Enter
Subcontracting Process with
Challan
 Subcontracting Process with
Challan

7. Subcontracting Challan : J1IGSUBCON

Enter Material document number where movement type is 541. > EXECUTE

Click on create Challan

 Subcontracting Process with
Challan

System will create GST subcontracting challan. To display challan click on challan or VF03.

8. Display Subcontracting Challan : VF03

Enter
 Subcontracting Process with
Challan

System will not generate accounting document.

9. Goods Receipts: MIGO

Post
 Subcontracting Process with
Challan

Accounting document will be generated. Stock will be updated for subcontracting receiving material and
sending material stock will be consumed.

10. Quantity Reconciliation of Subcontracting Challan’s : J1IGRECON

Enter Goods Receipts Material document number > execute

System will determine subcontracting challan of FIFO base > save.

 Subcontracting Process with
Challan

For manual reconciliation maintain subcontracting challan

Save.
 Subcontracting Process with
Challan

11. Invoice Verification: MIRO

 Subcontracting Process with
Challan

12. Subcontracting Challan: J1IGSUBCON

EXECUTE
 Subcontracting Process with
Challan

Configurations

13. Define Billing Types

SPRO>IMG>Sales and Distribution > Billing> Billing Documents> Define Billing Types (VOFA)

Copy “F8” billing Type to “ZSN”

 Subcontracting Process with
Challan

14. Pricing Procedure determination

SPRO>IMG> Sales and Distribution> Basic Functions> Pricing> Pricing Control> Define and Assign Pricing
Procedures> Define Pricing Procedure Determination (OVKK)
 Subcontracting Process with
Challan

Enter sales org, distribution channel and division which is maintained in the customer master.

15. Copy Controls: VTFA

Create copy control for the new Billing types(ZSP and ZSN) by copying the existing copy control setting of
the Billing type ‘F8’ and Sales order type ‘OR To ZSN and OR.
Subcontracting Process with
Challan
 Subcontracting Process with
Challan

16. Maintain the view J_1IG_V_SUBINV