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Mar 10, 2016 at 03:23 AM

CO entries in Job Work Scenario (Sales order is a cost object-Valuated Stock)

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Dear Experts,

I want to know CO entries in subcontracting scenario (Job Work) when I am sending raw material(Material X) for jobwork/sub contracting and receiving SFG (SFG Y) when Sales order is a cost object with valuated stock and everything is plan order/purchaser requisition is generating with reference to sales order (MRP Run).

1st Case:- When price control in "S" in SFG material (SFG Y).

AT the time of MRP Run system will create Plan order, it will convert in PR and than to Subcontracting PO.

At the time of GR it will generate Accounting & CO entries.

Dr. Consumption of Raw Material account What is Cost Object) ?

Cr. Stock of Raw Material

Dr. Stock of SFG

Cr. COGM SFG (What is Cost Object) ?

Dr. Job work Charges (What is Cost Object) ?

Cr. GR/IR Clearing Account.

2nd Case:- Same scenario when price control in SFG Y is "v".

Guys your answers will help me to get more clarity in understanding the concept.

Regards,

Vasu