Accounting entries for Scontracting GR

check this one......will expalin every thing

http://www.sap-img.com/mm004.htm

Purchase Order

50 pieces of material ASSEM-1 were ordered. The subcontract price is $10/piece (total value = $500).

The following components were provided to the subcontractor:

15 kg of the component COMP-1

5 pcs of the component COMP-2

Good Receipt

The subcontractor delivers 50 pieces of material ASSEM-1.

At goods receipt a consumption posting for the components provided to the subcontractor is automatically made. It is valuated at the price from the material master record, for example:

15 kg of the component COMP-1 at $20/kg = $300

5 pcs of the component COMP-2 at $30/pc = $150

The goods receipt is valuated with $950. This is calculated as follows:

the subcontract price (50 pcs * $10/pc = $500) and

value of the components ($300 + $150).

Invoice Receipt

The vendor (subcontractor) sends you an invoice for the subcontract work. However, the price is $10.50/pc. The invoice is, therefore, 50 pieces ASSEM-1 * $10.50/pc = $525.

Posting Schema for Moving Average Price Control

In this example, the following postings are made at goods receipt and invoice receipt, if the material (end product) is valuated at moving average price:

Postings

At goods receipt

At invoice receipt

Vendor account

525 -

GR/IR clearing account

500 -

500 +

External service account

500 +

25 +

Stock account: end product

950 +

25 +

Stock change

950 -

25 -

Stock account: comp.

450 -

Consumption account

450 +

Hi

It will create 2n+2 accounts on both debit/credit. i.e. if you have 3 items including final product, it generates 8 where 'n' no of items involved in the process.