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Accounting in Subcontracting ??

Former Member
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hii

What are the accounting entries will be there in subcontrating GR , and IV ???

Thanks

Accepted Solutions (1)

Accepted Solutions (1)

former_member225662
Active Contributor
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Hi,

If Material has Price Control as "V" (MAP)

(BSX) Stock A/c of Assembly - Dr

(BSV) Change in Subcon Stock - Cr

(FRL) Subcontracting Charges - Dr

(WRX) GR/IR Clearing A/c - Cr

(BSX) Stock A/c of Components - Cr

(GBB-VBO) Consumption A/c of Components - Dr

If Material has Price Control as "S" (Std. Price)

If Material is having Price Control as "S" then Price Difference A/c will also in picture.

This depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt

Price Differences for Subcontract Orders at Goods Receipt

In this step, you configure for each valuation area whether price differences are generated for a Subcontract order at the time of a goods receipt if the manufactured material is managed at standard price and the standard price varies from the receipt value (externally performed service + value of components + delivery costs).

Example

Finished product: $400 (value at standard price)

Subcontract order:

o Ext. service : $250

o Components : $100

Posting schema without price differences:

Stock account FERT : 400 +

Stock change : 400 -

GR/IR clearing acct : 250 -

External service acct : 250 +

Compon. stock account : 100 -

Consumption account : 100 +

Posting schema with price differences:

Stock account FERT : 400 +

Stock change : 350 -

Price difference : 50 -

GR/IR clearing acct : 250 -

External service acct : 250 +

Compon. stock account : 100 -

Consumption account : 100 +

And cost center is mandatory for subcontracting process

the accounts for the BSX FRL and GBB-VOB needs the cost elements

Regards

KK

Former Member
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HI,

I have read lot of document but i could no understand any, but after reading ur document i can remember easily, Thanks a lot.

Could you provide me the details of account Hit for all other scenario.

Thanks in advance.

Regards

Chandra Mohan

Answers (2)

Answers (2)

former_member187989
Active Contributor
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GR accounting entries clearly explained in this link

http://www.sap-img.com/materials/sub-contracting-cycle.htm

In invoice,

GR/IR is Debited to Vendor A/c & TDS A/c Credited (subcontracting involves TDS)

Former Member
0 Kudos

The easiest way to see these is to look at an example in your system because it depends on your own system settings but in principle . . .

On GR of the finished material you also consume the subcomponents so

Credit GRNI and debit stock for finished material

Debit stock for consumed materials, credit offsetting account

On IR - debit GRNI, credit vendor. And also other potential factors: vat, other taxes, price difference, exchange rate differences etc.

Regards,

Nick