Because of certain reasons such as manufacturing constraints, cost considerations, etc. manufacturing organizations may not be able to carry out certain processes out within their own premises. In such cases, the processing is done from outside. The process performed outside is called as job work. Job work in India is governed by provisions under the Rule 57F(4) - removal of inputs as such or partially processed inputs in respect of which Modvat credit has been availed.
Oracle Financials for India provides the functionality of tracking the goods sent to a sub-contractor for Job work. This document explains the setup required and the transactions flow required for achieving the same.
The setup and transactions given in this document are based on Oracle E Business Suite Rel. 12 and 12.1