sub contracting

[Former Member]

hi sap gurus

please clarify my doubt

i have subcontracting process in this process

i have created the P.O for Vendor, Vendor suply the goods to my sub contractor

in this process what are the configuration we need and what are the accounts will hit.

Regards

srinu

[former_member529134 · Accepted solution]

Hello

For this scenario, follow the following procedure.

Create a subcontracting order with item category L for the final product for the subcontracting vendor and explode the BOM in the material tab.

Create a purchase order for the components with the corresponding vendor and in the delivery tab click the SC vendor tick box and enter the subcontracting vendor number in the space provided.

When u do the GR for the component purchase order, the materials will be directly send to the SC vendor.

Receive the final product by 101 and simultaneously consumption of the components are also posted.

Accounts postings:

In this example, a subcontract order was created for the end product "ASSEM-1". The components COMP-1 and COMP-2 were provided to the subcontractor.

Purchase order

50 pieces of material ASSEM-1 were ordered. The subcontract price is 10/piece (total value = 500).

The following components were provided to the subcontractor:

15 kg of the component COMP-1

5 pcs of the component COMP-2

Goods receipt

The subcontractor delivers 50 pieces of material ASSEM-1.

At goods receipt, a consumption posting for the components provided to the subcontractor is automatically made. It is valuated at the price from the material master record, for example:

15 kg of the component COMP-1 at 20/kg = 300

5 pcs of the component COMP-2 at 30/pc = 150

The goods receipt is valuated with 950. This is calculated as follows:

The subcontract price (50 pcs * 10/pc = 500) and

Value of the components (300 + 150).

Invoice receipt

The vendor (subcontractor) sends you an invoice for the subcontract work. However, the price is 10.50/pc. Therefore the invoice is 50 pieces ASSEM-1 * 10.50/pc = 525.

Posting Schema for Moving Average Price Control

In this example, the following postings are made at goods receipt and invoice receipt, if the material (end product) is valuated at moving average price.

Postings

At goods receipt At invoice receipt

Vendor account 525 -

GR/IR clearing account 500 - 500 +

External service account 500 + 25 +

Stock account: end product 950 + 25 +

Change involving stocks 950 - 25 -

Stock account: comp. 450 -

Consumption account 450 +

Posting Schema for Standard Price Control Without Price Differences

For materials (end products) with standard price control also note that

No price differences are posted if the total of the external service value (for example, 500) plus the "material to be provided" value (for example, 450) varies from the value at standard price (for example, 1000). Posting of a price difference is not required because each posting line has its own offsetting entry.

No posting lines are created on the stock account or on the stock change account when an invoice is received.

In the above example, the following postings are made for a material with a standard price of 20.

Postings At goods receipt At invoice receipt

Vendor account 525 -

GR/IR clearing account 500 - 500 +

External service account 500 + 25 +

Stock account: end product 1000 +

Change involving stocks 1000 -

Stock account: comp. 450 -

Consumption account 450 +

Posting Schema for Standard Price Control With Price Differences

However, if you wish to generate a price difference posting in those cases where 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), you can configure this in the Customizing system of Inventory Management.

In the above example, the following postings (including price differences) are made for a material with a standard price of $20.

Postings At goods receipt At invoice receipt

Vendor account 525 -

GR/IR clearing account 500 - 500 +

External service account 500 + 25 +

Stock account: end product 1000 +

Change involving stocks 950 -

Price difference 50 +

Stock account: comp. 450 -

Consumption account 450 +

[Former Member]

Hi,

In sub con scenario the accounts that will be hit during GM are as follows;

(Assuming you have provided a raw material and getting a finished product)

BSX- finished product account(10+)

BSV- change in stock account(10-)

GBB VBO- raw material consumed (5+)

BSX - raw material stock account ( 5-)

FRL - external activity or subcontracting charges - (5+)

WRX - GR/IR clearing account( 5 - )

Hope it helps........

Reg,

Deepak.

[Former Member]

Hi,

In your scenario

I have subcontracting process in this process

i have created the P.O for Vendor, Vendor suply the goods to my sub contractor

in this process what are the configuration we need and what are the accounts will hit.

Just maintain that subcontract vendor number in the Purchase order item details Delivery address tab.

Regards

Ravi shankar.

[kunal_ingale]

hi

Subcontracting Under Full Payment of Duty

Process Flow...

1. Create a subcontract order for the subcontractoru2019s services.

in this order u have to give delivery add of subcon vendor

in delivery add tab in po give subcon vendor no and tick for sc vendor

now system will automatically do the 541 movement for the same

3. Create an outgoing excise invoice for the materials by J1IS & J1IV.

4. You send the materials to the subcontractor, together with the excise invoice.

5. The subcontractor processes the materials and returns them to you, together with another excise invoice.

6. Captures the subcontractoru2019s excise invoice, using the purchase order as the reference document.

7. Do the goods receipt & refer excise invoice in excsie tab.

8. Posts excise invoice.

9. The accounts payable clerk posts the subcontractoru2019s invoice.

hope it clears

regards

kunal

award if helpful

[Former Member]

Hi

In the PO given to matrial supplier to subcontractor, under delivery tab very bottom right corner you will find SC vendor with check box left blank. make a check mark there and adjucent to it in the box give your subcontrator vendor number.

In the PO print out you will find PO raised by your company, material deliery address your subcontractor company.

Rgds

srini