Set - 3

Question 1 :

What are the steps involved in consignment cycle?

Answer :

Consignment cycle is similar to a standard purchase cycle. The difference it that no accounting document is created at the time of goods receipts only QTY is updated.
It is settled once the same is utilized.

Question 2 :

Tell me about the subcontracting cycle.

Answer :

When the material is sent for subcontracting i.e. some value addition, it is converted into a different material. It needs a BOM to define the components of the finished item being received.

Question 3 :

How is scrap accounted in subcontracting?

Answer :

The scrap or the process loss can be adjusted while doing a quality inspection of the material received after subcontracting.

Question 4 :

How are the byproducts taken care of in subcontracting?

Answer :

Byproducts can be taken care of by defining them in the BOM

Question 5 :

Tell me about the various movement types and usage?

Answer :

101 – GR in unrest. use
103 – GR in Blocked stock
105 – Release from Block to Unrest. use stock.
122 – Return to vendor from unrest. use stock.
124 – Return to vendor from blocked stock
301 - Plant to Plant tfr.
309 – Material to Material tfr.
311 – Tfr. from stg loc to stg loc
261 – Issue for consumption.
411 – Taking consignment stock into own stock.
551 – Withdrawal for scrapping.