Subcontract scrap Accounting entries and scrap reconciliation in GST regime.

[former_member405030]

GST Subcontract scenario -

The scenario is scrap is generated during subcontract manufacturing. The BOM ratios as follows:-
FG Mat X - 100 KG

Component Mat -A= 50 KG
Component Mat -B= 50 KG

Scrap Mat Z (HALB) = -5 KG (maintained with - ve Qty)

1. Sending Component - A & B, each 50KG through MIGO-Transfer Posting - 541
2. Creating 1 Challan for two material documents
3. Creating PO for 100KG
4. GRN for FG Mat-X for 100 Kg (101)
Components MAt A=48 & B=48 consumed with 543 (543 O -)
Scrap Mat Z receivid - 4 Kg (545 O +) No A/C entries generated
5. Reconciliation is posted for Components A & B each 48 Kgs
6. Scrap is received from subcontractor stock with 542 Movnt. type.

My questions are
1. Accounting entries are not generated for scrap while GRN, Is it correct?

2. Is there any new transaction or process for Scrap reconcilation in GST?

regards,

Sudheer