Re: Account determination for subcon manufacturing

Question

Hi Experts,
Our company will subcontract manufacturing of goods but we will be supplying the raw materials.
Upon MIGO, the cost for subcon and raw materials should be posted to single GL only.
Goods                   450.00                          - cost from PO subcon
AP                                          450.00             - payable to subcon
Goods                  200.00                             - cost from raw material
Raw Materials                            200.00             - raw material issuance
The total cost for Goods should be 650.00
My problem is that how to assign one GL in account determination that will capture both cost from subcon and raw materials.
Thanks in advance!
Kath

Answer 1

Hi,
We can't create new account, the raw material cost should be part of the finished product.
What happens here is that the stock account for finished product was not debited with the cost of raw material (BOM component). It only has the subcontract PO net price. Below is a sample lines when posting in MIGO.
pk89 - FP Inv 400.00
pk96 - GR/IR 500.00
pk91 - GR/IR 400.00
pk86 - GR/IR 500.00
pk99 - Raw Mat 300.00
pk81 - GR/IR 300.00
The line for pk81 - GR/IR should be debited to FP Inv to capture cost of raw materials.
Thanks.
Kath