Subcon Postings

[former_member202528]

Hi All,

Can you update me account postings for sub-contracting process at various stages.

Thanks & Regards,

Krishna

[kunal_ingale · Accepted solution]

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 +

u2022 Creation of Outgoing Excise Invoice w.r.t. Transfer Posting Document (J1IS) - Used to send the components to Subcontractor's. Here 57F4 Challan is not created.

Accounting Entry: -

CENVAT Input BED - Cr

CENVAT Input ECS - Cr

CENVAT Input ECS - Cr

CENVAT Suspense A/c - Dr

u2022 Post Excise Invoice for FG received from Subcontractor (J1IEX)

Accounting Entry: -

CENVAT Input BED - Dr

CENVAT Input ECS - Dr

CENVAT Input ECS - Dr

CENVAT Clearing A/c - Cr

regards

kunal

[former_member192897]

The business key hit are

1.Sub- contracting:

FG BSX acc. Debit Acc.

GR/IR Cle.acc. WRX acc. Credit Acc.

FRL Acc. Debit Acc.

BSV acc. Credit Acc.

BSX acc. of components Credit Acc.

GBB - VBO Acc. Debit acc.

PRD acc. Some time Credit &

Some time Debit

For more check the link:

http://www.sap-basis-abap.com/sapmo005.htm

[former_member529134]

Hello

Go through the excel file at

http://rapidshare.com/files/149310514/sub.xls.html

It will help

Regards

Gregory Mathews

[Former Member]

the file you were refering is not available. could you please provide a fresh link.

Thanks,

Srikanth

[former_member581212]

Accounting Entries for a Subcontract Order

You check an invoice for a subcontract order in the same way as for a standard purchase order.

Additional account postings do, however, occur if a price variance has occurred. These postings are shown in the following example :-

Postings for a Subcontract Order

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

Good 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. The invoice is, therefore, 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 +

Stock change

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 +

Stock change

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 +

Stock change

950 -

Price difference

50 +

Stock account: comp.

450 -

Consumption account

450 +

Regards,

Priyanka.P

[former_member335885]

Hi,

Subcontracting Process

Subcontracting without Payment of Duty

Creation of Subcontracting PO (ME21N)

Transfer Posting of Components to Subcontractor (Mvmt Type - 541) (MB1B/ME2O/MIGO)

Creation of Subcontracting Challan w.r.t. Transfer Posting Doc (J1IF01)

Goods Receipt w.r.t. Subcontracting PO and Refer Subcontracting Challan at the time of GR (MIGO) {GR with 101 and auto consumption of components with 543 movement}

Reconciliation of Subcontracting Challan (J1IFQ)

Completion of Subcontracting Challan (J1IF13)

Generation of Annexure IV (J1IFR)

Note: - In this case, you have to maintain the Assessable Value for the Components to be supplied to Vendor in J1ID and also Excise Tax rates for the Chapter IDs linked with these components. So during J1IF01, system will take the Assessable Value as Excise base Value and calculates the Excise Duties by taking Excise Tax Rates.

Subcontracting under Full Payment of Duty

Creation of Subcontracting PO (ME21N)

Transfer Posting of Components to Subcontractor (MB1B/ME2O/MIGO)

Creation of Outgoing Excise Invoice w.r.t. Transfer Posting Document (J1IS) - Used to send the components to Subcontractor's. Here 57F4 Challan is not created.

Accounting Entry: -

CENVAT Input BED - Cr

CENVAT Input ECS - Cr

CENVAT Input ECS - Cr

CENVAT Suspense A/c - Dr

Capture Vendor Excise Invoice at the time of GR of Finished Goods w.r.t. Subcontracting PO (MIGO)

Post Excise Invoice for FG received from Subcontractor (J1IEX)

Accounting Entry: -

CENVAT Input BED - Dr

CENVAT Input ECS - Dr

CENVAT Input ECS - Dr

CENVAT Clearing A/c - Cr

Master Data

MM01- Material Masters for Components and FG

XK01 - Vendor Master (Subcontractor)

CS01 - BOM for FG

ME11 - Purchase Inforecord for Subcontracting

Thanks & Regards,

Kiran