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Offseting entry to inven posting for finished product in sub contracting

When we post goods receipt in subcontracting inventory account is debited with finished product.What is the account name to which offsetting entry is made & how to configure this in automatic account determination.

1) Same question was already asked and moved to T&P form. 2) Basic question. 3) Points will be unassigned.

Edited by: Csaba Szommer on Apr 16, 2011 7:58 AM

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Apr 15, 2011 at 03:31 PM

    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

    Thanks

    Diwakar

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  • author's profile photo Former Member
    Former Member
    Posted on Apr 15, 2011 at 03:34 PM

    Hi,

    Accounting entries as below:

    1) Change in stock (BSV)

    Changes in stocks are posted in Inventory Management at the time goods receipts are recorded or subsequent adjustments made with regard to subcontract orders.

    2) External service (FRL)

    The transaction is used for goods and invoice receipts in connection with subcontract orders.

    3) External service, delivery costs (FRN)

    This transaction is used for delivery costs (incidental costs of procurement) in connection with subcontract orders.

    Hope this helps.

    Rgds

    Utsav

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