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Sub-contracting Scenario - Profit Center / Cost Center


We have model wise profit centers.

Following is the scenario:

One particular model in produced inhouse as well as subcontracted.

FG to be subcontracted has Model Profit center.

We maintain BOM for this FG, which is exploded in sub-contracting PO.

RM is transferred to s Spl Storage Location.

When MIGO is done, FG inward is posted and RM consumption is posted as also the conversion charges.

FG inward is posted to Model Profit center.

RM consumption, being cost element is posted to a common cost center, which has a different common profit center.

So there is a mismatch between consumption and COGM within profit centers.

This is not the case if a normal Production Order is maintained, wherein Model Profit center is defaulted for COGM as well as consumption.

The client doesnt want to maintain modelwise cost centers which could have resolved the issue..

Any suggestions please!

Former Member
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