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Jun 07, 2022 at 06:22 AM

Sub-Contracting PO with Account Assignment K but with Stock Update


Dear Expert,

We are designing a scenario for our client where the damaged spare parts (In Plant maintenance) are sent to the vendors for repair. The cost that would be incurred for repair should be on Cost Center.

This is done for few of the Spares which are of high value. Spares are not sent individually but rather as a group of faulty spares which could get accumulated in a month or two. The idea is to send them together to save cost on transportation.

We are creating a Sub-Contracting PO with account assignment category K. When we receive the material from Vendor, GR 101 is carried out which results in immediate consumption. So the next step is Mvt type 202 which will reverse the consumption and update the stock.

Is this a right approach? Can you suggest a better way of handling this scenario from your experience.


S. Kumar