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author's profile photo Former Member
Former Member

subcontracting process

Hi experts,

In sub contraction process, we are sending materials to more than one vendor with same transport vendor. Which means the transport vendor is carrying 10 Pos and distributing the materials to all vendors. In my business i need to capture the frieght cost per each material and the value should be added to the material value. How to add the frieght cost according to the vendor?. can any one help me this scenario?

thanks in advance

abi

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    author's profile photo Former Member
    Former Member
    Posted on Dec 22, 2008 at 10:18 PM

    In subcontracting process, following entry would be created when components are issued to vendor without shipping cost.

    Material Consumption A/c Dr $ 1000 (GBB-VBO)

    To Inventory A/c $ 1000 (BSX)

    But if you would like to post the associated shipping cost while sending materials to vendor, use the shipping cost pricing procedure. This can help in posting a shipping cost entry as follows for each delivery you make to subcontracting vendors:

    Freight A/c Dr $ 100

    To Fright Accural Account $ 100

    I think you objective is to add the shipping cost to the final material received (not to the component sent out vendor), for this you can approximate the outbound (for components) and inbound ( finished goods)shipping cost and maintain the freight accruals conditions in PO. Now you can have the entry as follows while finished goods receipt from subcontracting vendor:

    Inventory A/c Dr $ 1500 (BSX)

    External Activity Dr $ 600 (FRL/FRN)

    To GR/IR A/c $ 500 (WRX)

    To Change in Stock A/c $ 1500 (BSV)

    To Customs/Provisions $ 100 (FR3/FR4)

    Award points if useful.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 22, 2008 at 06:30 PM

    ,

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