on 08-24-2011 8:14 PM
Hi Friends:
Customer sends tools to us for repair which They bought earlier , we take the quote from vendor for repair and if customer agrees we will get it repaired.
Is the Subcontracting is the right process for this scenario and if we created this tool as finished product, does it affect the average costing of the material?. Becoz Earlier we might have purchased the tool from the vendor @ X Price?
and Now we are getting the tool repaired @ Y Price? Does it affect Average cost?
we buy and repair the tools from the same vendor?
Thanks
Sweth
Hi,
This can be done thru subcontracting...Costing point of view better to activate split valuation.
Kuber
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Hi,
In your case Subcontracting process can be used for the machinery repairing and get it back. For procurement of new machinery from same vendor can follow normal procurement process. Hence it won't effect the price of the machinery. Why can't you use service procurement scenario for machhine repairing ? I hope this will help you.
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