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Former Member
Sep 27, 2011 at 09:57 AM

Subcontracting charges and process



We are implementing the Sub Contracting process, we have sonme restriction from our finance department that tehy do not wnat to include the subcontracter service charges in the total product cost, means payment to the subcontracter should be paid but it should not include in product total cost , for example:

Sub Contracter PO for X Product = 50 pcs

Issued Component A = 10 pcs ( 10 $)

Issued Component B = 10 pcs ( 15 $)

sub contractor charges $ 2 / pcs = 2 x 50 = 100 $

Good receipt of 50 pcs of X product

Total cost in above Good recipt is ( A (10) + B (15 ) + Sub contracter Chrges (100 ) = 125 $

now our finance want to exclude this subcontracting charges from the above process, so that our final product cost should always be same and it should not have any other cost impact. ( because finance is directly crfediting / debiting subcontractor charges from custome and vendor and it is not included in product cost.

or is ther anyway that we can create 0 value subcontracting Purcahse order?

We want to use subcontracting process to monitor the stock status and goods movement at co packer end.