Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

GL Entries During Sub Contracting

I am working for a cement industry. We have a new requirement for sub contracting our end product (Cement).


We will be supplying 1 raw material to a vendor for producing finished product Cement ( Two raw materials are required. 1 we will be supplying and the remaining 1 the vendor will add from their side).

After converting to FG vendor will return us FG (cement) based on a mutually agreed ratio. Ex: for 1000 TON of raw material we supplied they will return us 600 KG of FG (Cement), remaining 400 KG of Raw Material will be their charge.

No money transaction is involved in the whole process. Sub Contracting charges are being paid in the form of extra raw material.

What should be the financial entry involved in the whole transaction.

Process Involved:

- Transfer of Raw Material Stock to the Vendor

- Receipt of FG (Cement)

Kindly guide.



Please refer to below linkage:

0 View this answer in context
Not what you were looking for? View more on this topic or Ask a question