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Accounting entries for Scontracting GR

HI,

I want to know the accounting entries details while doing a GR from a subcontracting vendor.

My subcontractor vendor provides a semi finished material ZZZ

Input material to the subcontractor vendor is Material A and B each one.

The cost of Material A is Rs. 5 and for B is Rs. 10.

The subcontrating charges is Rs. 2

Please provide details.

Regards,

R. Dillibabu.

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jan 08, 2007 at 02:01 PM

    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 +

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 08, 2007 at 04:22 PM

    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.

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