As stated in our previous blogs “Manufacturing and Subcontracting in Sage 300 ERP“, subcontracting is one of the major areas when it comes to manufacturing. In subcontracting the principal organization sends the materials to the subcontractor, the subcontractor receives the material processes and then sends back to the principal.
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Thus the principal organization here has to make sure he keeps track of several important things including Sending material for subcontracting, receiving materials from the subcontractor and then tracing what materials are laying with the subcontractor. Apart from this, if the process is being executed in a country like India then the principal organization has to make sure that all the statutory requirements too are captured and maintained very well.
To manage all this and much more, Sage 300 ERP comes with a Module called as Manufacturing Excise which helps us manage all the above mentioned process very well. A user from a principal organization can send the required materials easily by marking the transaction appropriately which will state that the shipment is done for subcontracting purpose. Going further the subcontractor/vendor will process the goods and will send it back to the principal. While receiving the material from the subcontractor, Sage again has made a very good provision wherein the user can easily select against which shipment the inward has to be made. With this very important link the user can easily track of what quantities the shipment was made and what are the quantities received back from the vendor so that the data related to balance quantities lying with the vendor is maintained easily in the system.
With this kind of process establishment it has becomes very easy to generate various statutory documents that are required to by the government authorities. Also with these both, the principal organization and the subcontractor are aware as what goods are sent for processing and what goods are yet to be received from the subcontractor.
Also Read:
1. Why use Greytrix Trading Excise
2. Taxes in Sage 300 ERP
3. Transfer of Excise duties along with Inventory Transfer in Sage 300 ERP
4. Tax Calculation on the basis of Quantity in Sage 300 ERP
5. Statutory and Excise Module-Configuration-I