Suubcontracting PO

[Former Member]

Hi all ,

I am crating Subcontracting PO, which is free (mark check box for free PO).

At the time of GR the account postings are happening as below

Stock A/c for semi finished material - Debit - X amount

Cost of goods Manuf. - Creidit - X amount

Stock a/c for raw material - Credit - X amount

Consumption a/c - Debit - X amount

Here the amount X is calculated as Qty x valuation price - raw material.

My question is that why the system is calculating same amount for semi finished material as that of raw material. According to me the system should calculate the amount for semi finished material from its own price in material master.

Can any body through some more light on this?

Thanks.

[former_member309282]

Have you set the price of goods as V (in accounting tab) - ie moving average price.. if so.. the stock of semi finished goods is going to be equal to cost of raw materials + labor - in your case labor is free..

If you want ti to pull the value from material master, use S price - ie standard price. hope this helps

[Former Member]

Hi Boby,

In subcontracting,you need to maintain the info.record for subcontracted material(semi finished material) with item category as subcontracting.The price will be equal to the labour charges for producing the semifinished good. Raw materials are being provided by you to subcon.During receipts,the price will be taken from subcontracting info.record.

Semifinished goods' price cannot be equal to the sum of corresponding raw material prices.Trust this helps.

Regards

Venkat