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Author's profile photo Chandrasekaran Rajaraman

SAP Cloud Subcontracting / Job Work Configuration for GST India


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


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.

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      1 Comment
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      Author's profile photo Anoop Das
      Anoop Das

      India is the only country having Subcontracting Challan Process, thus monitoring the Challan creation, reconciliation and Invoicing the subcontractor if the material is with the subcontractor for more than 180 days is always a pain.

      Bringing this solution in Cloud will help. Thanks for sharing the detailed configuration and creation process.