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14 Replies Latest reply: Dec 29, 2011 7:52 AM by Jeyakanthan A RSS

Accounting entries for subcontracting

ARITRA MUKHERJEE
Currently Being Moderated

Dear Experts,

 

Please explain the accounting entries for subcontracting process in details.....

  • Re: Accounting entries for subcontracting
    Priyanka Paltanwale
    Currently Being Moderated

    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

    Priyanka.P

  • Re: Accounting entries for subcontracting
    ARITRA MUKHERJEE
    Currently Being Moderated

    Please explain the entries at the time of 541 and 101