I am having some confusion about the subcontracting GR accounting, As per my understanding:
FG stock = consumption of RM+PM + Subcontracting charge (GR/IR)+ price difference (if any)
But i am getting the below entries, where the above equation is not matching.
So in above consumption of material = 10.25 and GR/IR for vendor = 40 and FG stock debit = 30.25,
FG price is taking from FG standard cost and GR/IR taking from PO Net value. and no Price difference account hit.
Let me know what would be an accurate accounting entry and what needs to be done for that.