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Former Member
Feb 15, 2011 at 11:14 AM

Subcontracting Accounting entry problem

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Hi,

As for the subcontracting process the accounting entry are as below

While making GR:-

1.Dr in Stock account BSX. OP+RMP

2.Cr in Change in stock account BSV OP+RMP

3.Dr in External activity FRL. OP

4.Cr in GR/IR clearing acct WRX OP

5.Dr in Raw material consumption acct GBB(VBO). RMP

6.Cr in Stock acct of raw martl BSX. RMP

OP:-Operating price or labour price

RMP:-Raw material price.

While making IR:-

1.Cr in Vendor account--OP+Tax or deviation

2.Dr in GR/IR clearing Acct WRX OP

3.Dr. in Tax account(Input)--VST maintained in Tcode OB40-Tax or deviation.

FRL transaction key used for posting your labour cost and same will be credited in your GR/IR clearing acct.

now as per our finance person want they want the amount in BSV and FRL have only one netry

BSV- Credit OP+RMP

FRL- Debit OP*

but in both those account they never get any othere entry for the nullify of amount which is debit or credir, so what setting is needed so that finally the balance should be zero in both those account.

regards,

zafar