How is scrap accounted in subcontracting

This document provides an overview of the scrap return process in subcontracting procurement using a real-time business scenario with challans in SAP. The key sections covered are:

Introduction: Defines subcontracting and provides a business scenario of a manufacturing company outsourcing metal sheet cutting to vendors and receiving back finished sheets and scrap.

Process Steps in SAP: Outlines the SAP transactions for subcontracting procurement – creating a purchase order specifying child and scrap materials, issuing materials to vendor with a challan, goods receipt of finished materials and scrap, and moving scrap to company storage.

Configuration: Highlights SAP configuration required for subcontracting like document types, pricing procedures and movement types.

Stock Monitoring: Shows tracking of material stock at various stages during subcontracting procurement.

Key transactions like ME21N, MIGO, J1IGSUBCON, MBLB are explained along with their purpose.

The document provides a clear understanding of the integrated procure-to-pay subcontracting process flow i