Inventory postings to Dummy purchase A/c.

Question

Hi Team,
If I do GR for sub-con PO (Say, Parent material- P100100 and Child- C100100), current postings are as below:
Inventory A/c     Cr $100 for P100100 (101):
Dummy purchase A/c     Dr $100
Inventory A/c     Dr $100 for C100100(543):
Dummy purchase A/c     Cr $100
Please explain, what is the user of Dummy purchase A/c? Can I say ‘Dummy purchase’ is an off-set account?
Is it possible or can we set for Debit and the Credit are between P100100 and C100100? Eg as below:
Inventory A/c          Cr $100 for P100100 (101)
Inventory A/c          Dr $100 for C100100 (543):
Please advice, is the above postings are suggestible?
Thanks in advance for your help.
Best regards,
RAMAN,

Answer 1

Hi,
during subcon GR the following accounts are affetced..
Finished goods   stock a/c
Stock change a/c
GR/IR clearing a/c
External service a/c
Comp stock account
Consumption stock comp account
As per your first query,
Inventory A/c Cr $100 for P100100 (101): (finished goods stock a/c)
Dummy purchase A/c Dr $100   -
> This is supposed to be   stock change account for parent
Inventory A/c Dr $100 for C100100(543):(stock account of components)
Dummy purchase A/c Cr $100         -
> This is consumption stock account for components.
(i assume that GR/IR account and external servcie account are  already considered by you )
Second query,
Is it possible or can we set for Debit and the Credit are between P100100 and C100100? Eg as below
Inventory A/c Cr $100 for P100100 (101)
Inventory A/c Dr $100 for C100100 (543):
The  valuation of parent material can not  be the same as components.
Valuation of parent = valuation of comp+subcon service charges.
  the above requirement is not posssible.
Please let me know if you need  any clarifications further..