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Job Work Process in SAP

The document describes the job work process in SAP, including creating master data for job workers, warehouses, and items. It outlines the transactional processes for sending goods to and receiving goods from job workers using inventory transfers and bills. It provides an example of the full process from purchasing raw materials, sending to a job worker, receiving finished goods back, and creating a production order.

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saurabh_k2009
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670 views

Job Work Process in SAP

The document describes the job work process in SAP, including creating master data for job workers, warehouses, and items. It outlines the transactional processes for sending goods to and receiving goods from job workers using inventory transfers and bills. It provides an example of the full process from purchasing raw materials, sending to a job worker, receiving finished goods back, and creating a production order.

Uploaded by

saurabh_k2009
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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JOB WORK PROCESS IN SAP

1. Master Data
a. We will create the Job work Warehouse in our SAP B1 for every Job worker
separately.
b. Item Master of Raw material & Job work Item Master.
c. Job Worker Customer & Vendor code.

2. Transactional Data
a. Sending Goods to Job Worker:
Inventory Transfer Inventory >>Inventory Transactions >> Inventory Transfer

Inventory Transfer:
(a) This document will be used to transfer stock for Job work
(b) Store person will create Delivery Challan through Inventory transfer document &
fill the mandatory details in relevant fields
(c) Series for these types of challans will be different stating with “JWO-KAT” for
Outgoing Challan and for “JWI-KAT” for Incoming Challan.
(d) E-way Bills will be generated as per the attached details.
b. On Receipt of Goods from Job Worker: On receipt of Material back the Store team
again create the Return Challan of material from Job worker through Inv. Trf screen.
(as shown above.) This will make the stock zero in the job worker warehouse. There
will be a separate Inv. Trf. document for the scrap or missing material.

c. Material Bill: Along with this challan Job Worker will provide the sales bill of the
material he used to modify our product. For that we will follow the purchase
process.

d. Service Charges Bill: Job Worker also provide the bill of Job work charges which will
be booked by the Finance team directly into through AP Invoice – Service type.

There should not be single bill of Material and job work charges from the Job worker.

Once all the Goods come back into our Factory then the Job-work BOM will be executed and the
material will be converted into the Final (SFG) Product. This process is same as like normal
Production process.

For Example.:

In Case, we Purchase Material from the Vendor (Jindal) and directly send to the Job Worker. (100 KG
of sheet)

Out of 100 KG job worker will create the 400 Circle. (400 circle of .240 GM (approx.) each and 4 Kg as
scrap.)

1. We will book the Purchase from vendor (Jindal) in our books (SAP B1) as normal purchase
process. (i.e. PO-GRPO-AP Invoice)
2. After that we will make the JW Challan from RM warehouse to JW warehouse. (Inv. Trf.
Screen)
3. Once the Goods will be ready, Job worker will send it through Job-Work return challan. He
can also send the partial material. He returns 50 KG (200 circle + 2 kg scrap.)
4. We will make the Job-work return challan in our books (SAP B1) of 50 KG Material (200 circle
+ 2 Kg of scrap.)
5. After that Store team will make the Job Work Production order of the Circle, Qty 200 Kg. in
the BOM two Raw material will be used (1. Sheet, Qty 50 Kg. 2. Scrap Item -2 KG.) Scrap will
be added in the stock for sales in future.
6. Once the Point number 5 will be done then the circle will be ready for future use.

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