The Purpose of this blog is to take you through Subcontracting / Job Work Process Configuration in SAP Cloud Environment  

This document helps Customer to carry out  Step by Step Configuration  / Validation setup for Subcontracting / Job work with Challan and Subsequent Invoice 

Sub-Contract Configuration - GST India

Step 1  Assign Sales Area to Supplying Plant

Maintain Sales Organization, Distribution Channel, Division and Customer to Plant Code 

Manage Solution.png


In Application Area Select Organization from Drop Down as shown below


Below level nodes would be displayed select item Set up an Organization Structure for your Company Code   


Scroll down to Define Shipping Data for Plants 

Select Plant Code and Click Details for which Sales Area and Customer number to be maintained once assigned save

STEP 2 : Assign Billing Type and Challan Document Validity Days

Select Finance in Application Area Drop down value and in Sub Application Area Select Localization and search

Select Subcontracting and on the Right side you would be able to view the Configuration steps as per Screenshot  shown  below

Click on Configuration Steps 

Click Configure Classify Subcontracting Billing Types 

In this Step Assign Company Code / Order Type and Billing Type to Bill Class

Click on Configure In the below level to assign Challan document validity days 

Validity days maintained is 180 Days as per current requirement

Automation of Delivery Challan and Reconciliation of Challan based on FIFO  

The Setting is done specific to Plants for which Automation is required

Step 3  Pricing Procedure Assignment for Delivery Challan and Invoice Creation

In Application Area Select Sales from Drop down value and in Sub Application Area select Price Management follow the steps as shown below 

Pricing Procedure Determination for Sales area as Assigned in Shipping data for Plants

Step 4 ODN Configuration

For ODN Configuration for Delivery Challan and Invoice Please refer to the Blog https://s4hanacloud.community.sap/blogs/show/AWS7ZjPiYQzLeilj5mZ52q


With the help of above mentioned details, I hope you would be able to configure and execute Subcontracting Process with relevance to GST India requirements.