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Former Member
Jun 27, 2009 at 10:53 AM

Rejection of subcontract material to vendor without return of material.

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Dear friends,

There are some subcontracted (semi finished) parts kept with us which were received from Subcontractor after their process. As usual at the time of GR, the raw material sent to them were consumed at our end and relavent labour charges were paid to them towards this.

Later it is found that the parts are faulty and decided to reject the same to the Subcontractor.

1. We like to scrap the semi finished material at our end which will be later sold to external customer. For this stock of the scrap material to be maintained. (The scrap material is maintained in another material number and also it is in kg which is different than the semi finished material).

2. The value of the rejected semi finished good after deducting the scrap value has to be debited to Vendor account.

3. The labour charges also to be debited to the vendor account. (Can this be posted by subsequent credit?)

Friends, is there any solution to this issue. Please guide.

Thanks

Harikrishnan.