Introduction As a SAP Procurement Consultant, Subcontracting is one of the most sought after and important procurement process. Subcontracting is a process of providing components/goods to vendors and receiving finished products. With an aim to bring in uniformity in the tax structure, the GOI rolled out GST. As we are aware of the changes proposed by SAP after the introduction of GST in India, new Transactions came into the the picture and the process of reconciliation of Challans. Process I recently worked on an activity(Subcontracting with automatic reconciliation) which involved simplification of the procurement process of Subcontracting and wanted to provide an overview of the the standard process. The process is as follows: 1. Create a Subcontracting PO(Item Category L), also maintain the component for the same. 2. Issue goods to the Vendor using MIGO.(541 Mvt Type) 3. Now create a Challan for the 541 material document using T-code J1IGSUBCON. 4. Now post a Goods Receipt ...
Logistic Invoice Verification Every organization procures some goods and services to complete the business processes. Once goods are procured from vendor, through GR we place those goods in company premises after that vendor sends invoice (The amount to be paid along with the details of the material is provided by the vendor in the form of a document) to pay for procured goods. Before paying to the vendor we need to check the invoice for correct payment, this process is known as Logistic Invoice Verification. Before going in depth let us know some basic term you come across during LIV. Posting of Invoice It is done after the good receipt (Receiving Goods from vendor) The invoice received from the vendor is verified for cost,...