PPV for subcontracting materials mystery- posting to a different cost element?

[Former Member]

Dear All:

Are there any OBYC (FI-MM) account determination settings to have PPV incurred due to Subcontract (SC) POs post to a different account than regular PPV? If not, is there any distinguishing characteristic at the line item level for SC PPV posting to report it in contrast with regular PPV line item?

Or am I looking at creating a substitution rule to make this happen?

Looking forward to some insights!

[Former Member]

Hi Deepak,

Subcontracting variances will be posted according transaction BSV (OBYC).

Hope it helps.

[Former Member]

Hi Jov,

Thanks for your prompt reply. I have the BSV transaction configured and noticed that BSV will be triggered during subcontracting GR. It defines the Change in stock account and is maintained to accomodate the credit side entry for the output material during GR.

I don't see BSV playing any role in subcontracting PPV.  Can you please confirm in your system?

[Former Member]

You are right, i forgot to include transaction External activity (FRL). Variances between PO price and standard will be posted according to it.

Also, in case you want to simulate the posting lines according to material/plant and movement type use transaction OMWB.

Hope it helps.

[Former Member]

Sorry but FRL is used to account for the subcontract fee paid to the external vendor. I'm looking to see if the PPV for a subcontract PO - could be due to quantity or price variances - can be posted to any account other than the one used in PRD. Or should I use a substitution rule? Thanks for your help.

[Former Member]

Hi,

I might be missing something in your scenario. In our case, same gl account (Sub. Variances) is set up for transactions BSV (goods receipt at standard), FRL (fee paid to vendor) and GBB-VBO (consumption from stock of material provided to vendor), what give us the variance:

BSV (Credit) / FRL (Debit) / GBB-VBO(Debit).