Sub Contracting GR Accounting Entries
Hi All,
I am posting GR for sub contracting PO and found the following entries in the accounting document of GR:
1. Stock Acct. of Finished product
2. GR/ IR Clearing Acct
3. Sub Contracting Charges
4. Change in Sub Contracting Stock
However, I did not see the accounting entries for:
1. Stock Acct. of Spare parts
2. Consumption Acct
Please suggest how to corrent the same?
Rgds,
KK
Hi,
Check in GR Document whether line item for component consumption exists with MvT 543, if yes then check whether MAP of material is ZERO.
If line with MvT 543 doesn't exist then you might have forgot to activate "Item OK" indicator for component line item during GR in MIGO. Confirm this by checking componet stock in MMBE for special Stock "O" for Vendor. Just cancel the GR Document and Post GR again.
During GR against Subcontracting PO (In MIGO), following A/c Entry should get posted;
BSX Assembly Stock A/c Dr 5000.00
BSV Change in Stock A/c Cr 5000.00
FRL Subcontracting Charges A/c Dr 1000.00
WRX GR/IR Clearing A/c Cr 1000.00
GBB-VBO Component Consumption A/c Dr 4000.00
BSX Component Stock A/c Cr 4000.00
Similar Messages
-
SUB CONTRACTING ACCOUNTING ENTRY - DOUBT
Hi,
the blw is the a/cing entry for the sub contract process , here pls tell me how the a/c detemination for Rs 1000 is picking i.e for BSX & BSV..
i knew that FRL & WRX picked based the po price say Rs .200
and GBB & BSX is picked based on the mat master value of the ram mat, which we send to subcontractor.. say Rs 800
i need to know , how the BSX and BSV value is picking?? pls clarify
BSX- stock account finished -
1000(+)
BSV- change in stock -
1000(-)
FRL-external service----
200(+)
WRXGR/IR clearing acct--
200(-)
GBB_VBO- consumption acct raw material sent to vendor-----800(+)
BSX- stock account--
800(-)in your case , Your Finished material is valuated at MAP with price control "V" , so the total value of material produced will be the sum of the Raw material components consumed and the subcon charges.
Change in stock account is hit when you receive any material from subcontracting .
so BSX entry is "Stock debit " 800 +200 = 1000 (sum of Components consumed and Subcon charges)
BSV Entry is for "Change in stock " credit = 1000 (equivalent to Finished material value) -
Dear Friends,
For subcontracting purchase order at the time of goods reciept for
15 kg of the component COMP-1 at $20/kg = $300
5 pcs of the component COMP-2 at $30/pc = $150
The goods receipt is valuated with $950. This is calculated as follows:
The subcontract price (50 pcs * $10/pc = $500) and
Value of the components ($300 + $150).
As per the SAP standard the below entry is shown as example. my user is asking when the value of external service is loaded in the
stock account end product as 950 then why again external service account as 500 again debited separately
can anybody explain clearly this entry. because my user is expecting only 1) gr/IR , 2)SEMIFINISHED GOODS(Which is recived from sub contractor) 3) Rawmaterial account( which is issued for sub contract) 4) Raw materail consumption account.
I am unable to explain about external service account and change involving stock accounts. Please give ur valuable time to answer me?
At goods receipt
GR/IR clearing account 500 -
External service account 500 +
Stock account: end product 950 +
Change involving stocks 950 -
Stock account: comp. 450 -
Consumption account 450 +Dear,
Go to transaction code OBYC , check the G/L account against Account key FRL . That is the G/L which will hit instead of inventory account while doing goods receipt . Suppose Rs5/- per one unit of service and 100 units of service will be provided. Then this Rs 500/- will hit this G/L account which is provided by FRL accnt key .This will be balanced by GR/IR clearing account.
Then in OBYC check account key BSV. The G/L which will be assigned to this key will be the change in stock G/L.Suppose we receive a finished goods worth Rs1000/- . Then against Finished goods inventory account this account will get balanced.
Then in OBYC click on GBB accnt key , then check account modifier VBO . Against valuation classs check the G/Ls . During subcontracting the raw material which gets consumed will hit this G/L account. Suppose we used one Rs 800/- worth of raw material. Then during GR this will be consumed. So inventory credit and Consumption account debit . That consumption account is maintained at this location.
These are the three accnt keys which are used for subcintracting account determination.
Hope it helps
Abhijit -
Sub contracting Process issue for A/c entry
Hi All,
While doing the GRN for subcontracting process ,cost object error is appearing for stock change SFG account ( BSV).
Business would like to do not assign the Default cost object for change in stock account. Kinldy confirm whether it is possible to determine Internal order number ,whcih same assigned to GRN for stock in change account SFG.
Any alternative method would be apprecaite
Rgds
SumaManiThanks to all of us for answers !!
We solved problem as mentioned !
1. Created separate SFG Stock change over subcontracting GL account and assigned same in OBYC - BSV & profit centre wise internal order defaulted in OKB9 settings.Also created sub contracting expenses GL and assigned OKB9 profit centre wise. ( Problem has been solved with separate GL account of stock change over)
It can be possible to solve with using of substituion GGB0 with module pool RGGB0*
Rgds
SumaMani -
GL account doesnt exist in company code-error in Sub contracting PO.
While doing GR for the sub contracting PO, I am getting this error for line item 4: GL account 490237 is doesnot exist in company code 0600.
3 line items are already recieved to the GL account 490223 which is correct.
for 4 th line item when i am going to do the GR the above error is occuring,
I have checked the FRL setting for Valuation grouping code VB01 with 490237; it should be acually 490223.
Where can I see the changes relevant to that, all of a sudden GR is asking for the new GL account than the one which use to posted earlier? Pls help me experts.
Thanks
SriThe correct G/L account is 490223, so far posted with. what changes went to production I dont know
Valuation grouping code in obyc is VB01 490237 (at present for FRL)
VB02 490223 (at present fro FRL).
due to which all of a sudden its looking for 490237 which is not correct.
after our EHP5, is this got changed to vice versa?
Thanks
Sri -
Sub-contracting: difference in Accounting
Hi guys,
I am using release 4.7 and we are discussing about 2 different ways to proceed sub-contracting.
1. Sub-contracting is handled only in MM: PR>PO>GR
2. Sub-contracting is handled as an external operation in routing:
Prod.Order>PR>PO>GR>Confirmation of Prod.Order
In particular we would like to understand the different impact these two ways of managing Sub-contracting have in accounting especially in Cost of production and in cost of goods sold.
Could you kindly give me some clarifications?
Thanks in advance
VirHi Sunil,
there is a particular thing I forgot to say that is Material Ledger. In my company we implemented it and all stock materials are managed with standard control key.
So at the end of month there is Variances Analysis and Distribution to materials with multi-level strategy.
What I want to know is if both methods of Sub-contracting fullfil the requirements of cost of production and cost of goods sold reconciliation .
Your precious answer is grateful
Vir -
Dear All
We are sending the material for sub contract through challan. At the time of receipt out of 5 component rejected 1 component due to poorquality. How can enter this entry in sap std.
Shall we send back for recetification in the same challan/or have to prepare a new challan.
Guide me the process.
kskHi,
If you send 5 component to Vendor through challen.
At the time of reciept you recieve 5 components out of which 4 components are ok & 1 is rejected due to poor quality.
What you can do is you can inward the 5 component in MIGO & do the quality rejection through 122 mvt type for 1 component & send back the same material to vendor for reprocessing. Once he proceess the component again inward the component & then complete the challen .
rgds
gsc -
Sub Contracting-Inventory GL shoule be P&L or Clearing Account?
Hi,
I am facing problem in Sub contracting. Please any one can clarify me whether Sub Contracting-Inventory GL should be P&L or Clearing Account?
Thanks
KBit should be clearing account. Because we receive the goods,These goods are need to transfer to toher party.
-
Sub contracting- A/C postings
hi all,
posting GR(101) for subcontracting item against subcontracting PO resulted posting to a 'change in stock' account (Tr.Event.Key BSV) with a value ( SC item value+SC service charge).
If i want this value to be posted to consumption account what should i do.
Is BSV is Tr.Event.Key for offesetting entry??
What 'change in stock' account generally stands for?Hello Satish
The change in stock account (BSV) should not go to consumption account.
I will give an example in which we are providing components for Rs.450 and the sub contracting charges is Rs.500
At the tome of goods receipt:
GR/IR clearing account(WRX) 500 -
External service account(FRL) 500 +
Stock account: end product(BSX) 950 +
Change involving stocks(BSV) 950 -
Stock account: comp.(BSX) 450 -
Consumption account(GBB) 450 +
And for your question, the consumption a/c will be a P/L account which will be reflected in the balance sheet. And so if you put the change in stock a/c also in the consumption a/c then in the balance sheet it will show high consumption value when the real consumption value is not that much.
Thats why this is configured like this in standard SAP system.
Hope this helps
Regards
Gregory Mathews -
I need sub contract in sales.
Ex:
Customer sent material to plant they need some process in our plant for that I need scenario and configuration.
How we allow customer material into plant?
After finished work how to deliver products to customer and billing also.
Please help me any oneHi Dharmananda rao
Sub Contracting Cycle :
(1) You have a material that can be procured externally, and you have maintained BOM with components. Any waste generated and received during subcontracting process can be maintained as component with negative quantity.
(2) You create a subcontracting PO (PO with Item Category L). You can also maintain Purchase Info Record for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components for SC PO. Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor"
(4) You receive finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products. There are three events, so three accounting entries are generated:
DR FG Stock/ SC By-Product Stock
CR Change in Stock (FG/ SC By-Product )
(for finished goods received)
DR Subcontracting Charges
CR GR/IR Clg
(for moneys payable to Subcontractor)
DR Consumption (Components)
CR Change in Stock (FG/ SC By-Product )
(material provided to Vendor is now charged to expense)
5) You do the IV for SC Invoice, and the process is complete.
Process of Subcontract in MM :
Sub-contract business process:
You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .
Vendor shall process the item / use the item provided & supply the final item.
SAP process:
1.Create the finished goods material code.
2.Maintain the BOM for the material.
3.Create PO with item category as "L" .
4.Issue material to vendor with movement type 541
5.Receive the material against the PO with movement type 101.
6.MIRO to account for vendor's invoice for the service charge& material used by him.
Can anybody tell me how a process has to be given to subcontracting?
Suppose, I have 3 operations 1)weaving 2)dyeing 3)cutting & packing
if no 2 process (i.e Dyeing) has to be given to subcontracting, what process should i follow ?
The following process to be followed for subcontracting.
1. Item code(material master) to be created at the stage of before dyeing.
2. Item code(material master) to be created after Dyeing as subcontracted item.(F30)
3. Bill of material to becreated for the material(2) calling for material(1)
4. Inforecord and source list to be created for material(2) with the corresponding vendor
5. PO to be released for material (2)
6.Along with PO the material(1) to be issued to vendor
7.On receipt of material when GR is made the stock with vendor will get updated.
How to Create a Subcontract Order?
To create a subcontract order, proceed as follows:
Enter the material you want to order and the item category for subcontracting (L) in the order item.
Press ENTER to display the screen for component processing.
Enter the components that the vendor requires to manufacture the product.
Please note:
You do not need to enter the date required for the components. This date is proposed by the system when you press ENTER.
It is calculated as follows:
Delivery date of the item - Planned delivery time
If you do not want the quantity of the components to be changed if the order quantity of the end product is altered, set the indicator Fixed quantity (column F).
You can determine whether the components are available on the date required by selecting Edit -> Availability check.
If you entered a bill of material as the material in the subcontract order, the components are created automatically.
If you want to determine the components in the bill of material at a later date (for example, if the bill of material is subsequently changed), choose Item -> Component -> New BOM explosion. The existing components are deleted and redetermined in the bill of material.
Save the purchase order.
When you print the purchase order, the components are printed per order item
Subcontracting - Key Points
Special Procurement Process.
Item category: L
Order type: NB
In info record vendor should be maintained as subcontractor.
Vendor (Subcontractor) receives the components used to manufacture a finished product directly from your company or through third party.
Your company should place a purchase order for the finished product. In this manually you can enter the required individual components or it can be determined via the explosion of BOM (if exists).
Stock check at vendor level: ME2O
Company stock check: MMBE
GR for individual components through movement type: 501 or 561 (if with out PO or without reference).
GI to subcontracting vendor: through movement type 541.
GR from sub contracting vendor: through movement type: 101
Movement type 543 is displayed to cancel the material cost account.
If the subcontracting order has to be generated through materials planning,the special procurement key has to be set in MRP 2 screen.
- To create the Subcon Info Record : Tcode ME11 - Info Category - Click Subcontracting
- To create Material BOM : Tcode CS01
- With the Info and Material Setup, you can then create the Purchase Order in Tcode ME21N
Reward if useful to u -
Sub-contract process with T.codes..?urgent
Hi
can anybody explain me ,
what are all procedures to be followed to carry Sub-contract process with T.codes.
From sub-contract PO to Subcontract challan output
Explain me step by step process with t.codes
Thanks
sap-mmHi,
Sub Contracting Process with t.codes are:
(1) You have create material in MM01(Finished Goods ,mat type FERT) that can be procured externally, and you have maintained BOM (CS01) with components (Raw Materials , Mat type ROH). Any waste generated as scraps or by products received during subcontracting process can be maintained as component with negative quantity or in % basis in the BOM in CS01.
(2) Create a subcontracting PO (ME21N, Item Category L). Maintain Purchase Info Record (ME11)for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components(Raw Materials) for SC PO(In ME2O directly or by MB1B with 541 Movement type). Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor" .So no accounting document generated by supplying raw material to Sub Contracting Vendor.
(4) You receive (MIGO) finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products. There are three events, so three accounting entries are generated:
FG BSX acc. Debit Acc.
GR/IR Cle.acc. WRX acc. Credit Acc.
FRL Acc. Debit Acc.
BSV acc. Credit Acc.
BSX acc. of components Credit Acc.
GBB - VBO Acc. Debit acc.
PRD acc. Some time Credit &
Some time Debit
(5) Invoice Verification (MIRO) for SC Invoice.
(6) Payment in F-53
If you are activate Price Diff. Acc. for SC-Vendor in....
OLMB -
> GR -
> Price diff. acc.for SC order while you do GR for your Plant......then Price Diff. Acc. also will be trigered...
Regards,
Biju K -
Sub Contracting in Controlling
Dear CO Experts,
I have sub contract scenario in my client place. Scenario is as follow,
"Raw Material send to Vendor then Client received either FG/SFG material from Vendor Location. In between some expenses charged by Vendor through raising Purchase Order - Sub Contract".
Whether we have to add or not to Cost component Structure. If yes how to be map to Cost Component structure.
How to valuated in Accounting & Costing. (including Entries)
Is there any required for OBYC integration settings?
I am waiting for your favorable reply.
Regards,
KBR.Hi,
Please check the below link for reffernce:
http://help.sap.com/saphelp_erp60/helpdata/EN/35/6e8ac0c27242558395188e1df0ec46/content.htm
In subcontacting pricing proccedure you will have expense condition type and agansit u will have transaction event key like "FRL", You can assign the cost element in OBYC T code in Transaction event Key FRL.
Please check and Confirm.
Thanks and Regards
Binioj M D -
Hi Friends,
While doing the subcontracting, I have got the below said postings. my problem is semifinish price is picking from material master.But it should add the rm1, rm2, jobwork chg. So please suggest
1 89 22301100 semi finish 300 bom
2 96 18729001 vendor 25-
3 91 41301100 chg in stksf 300- semi finish 1. rm1
4 86 40491100 jobwork chg 25 2. rm2
5 99 22401100 stk rm 1 2898.71-
6 40401100 consumption 2898.71
7 99 22401100 stk rm 2 10- 10-
8 40401100 consumption 10+
mat master price
semifinish 300
rm1 2898.71
rm2 10
service charge in PO 25
Regards
sridhar.kHi,
In general FI postings for sub contract will be as under, if
Raw Material Value - 100/-
Job Work charges - 50/-
Semi Finished Material Value - 150/-
Service Tax - 12%
ECess - 2%
Higher Education Cess - 1%
FI Entries during MIGO
Semi Finished Stock - 150/- Debit (BSX) Posting Key - 89
Change in Stock - 150/- Credit (BSV) Posting Key - 91
GR/IR - 50/- Credit (WRX) Posting Key - 96
Job Work Charges - 50/- Debit (FRL) Posting Key - 86
Raw Material Stock - 100/- Credit (BSX) Posting Key - 99
Raw Material Consumption - 100/- Debit (GBB-VBO) Posting Key - 81
FI Entries during MIRO
Vendor - 56.18 Credit Posting Key - 31
GR/IR - 50/- Debit Posting Key - 86
Service Tax - 6/- Debit Posting Key - 40
ECess - 0.12 Debit Posting Key - 40
HECess - 0.06 Debit Posting Key - 40
Posting Keys and GL account numbers may change depends on client.
bye
Sridhar Thota -
541 & 543 Mvt for Sub Contract Process with Split Valuation
Hi all,
We have activated SPLIT VALUATION for sub contracting in ECC 6.0
We have clasified into 3 Valuation Catergories as New,Repaired & Faulty.
The logic & naming convention of the materials are
New Material : C1
Repaired : C2
Faulty : C3
The details are as.....a faulty material can be converted into Repaired by the external Vendors,for which we raise a PO and do MB1B with 541 mvt type with ref to this PO.
The Acing Entries are
PK GL Code Material Value
99 117000 C3 10
89 117000 C2 100
93 600530 90
While in process the GR w.r.t the above mentioned PO ,we are getting 6 accounting entries (which is delivered by Stand SAP) they are as
PK GL Code Descrip Value
89 117000 Stock 100
96 117400 GR/IR 150
91 600530 Sub Cont 100
86 600863 Sub Service 150
99 117000 Stock 100
81 600530 Sub Cont 100
Can any please explain me how the system calculates the above Accounting Entry.
We are confused why the system calculates ( entries) for the 91,81,86 Posting Key.
I have uderstood that PK 89 for goods inward, 96 is for GR/IR clr, 99 is for reversal of 541 mvt type.
Other 3 entries i have the confusion ........
Can anyone please guide me and explain in detail how ,why andfrom where the system is calculating the entries.
Hope that you will help me in this regards
Take Care
God Bless
Regards
Praveen.
Edited by: Praveen Singh on Sep 16, 2008 8:07 PMGo to OMWB and click on simulation and here enter you mateirla number, plant and Mtype 101
Then click on account assignment
you will see all the entries
Posting Lines Text VlGCd AGC VCl PK Acct D PK Acct Cr
Gain/loss from revaluation -e- -e- -e- 83 440700 93 440700
Inventory posting -e- -e- TRA1 89 130000 99 130000
Incidental costs of external a -e- -e- -e- 86 460820 96 460820
External activity -e- -e- TRA1 86 460960 96 460960
Change in stock account -e- -e- TRA1 81 460820 91 460820
Purchase offsetting account -e- -e- -e- 40 --Missing- 50 --Missing-
Purchase account -e- -e- -e- 40 --Missing- 50 --Missing-
Materials management exch.rate -e- -e- -e- 40 440600 50 440600
Cost (price) differences -e- TRA1 83 440000 93 440005
GR/IR clearing account -e- -e- TRA1 86 210005 96 210005
Inventory posting -e- -e- TRA1 89 130000 -
*Is it possible to put service conditions in sub contract PO?*
We are giving an Item X for servicing to a vendor. The vendor can do to 2 services S1 and S2 to the item X and give it back.
For this we made a recursive BOM with item X and created a sub contracting PO.
But the problem is we are already having service master and SERVICE conditions for S1 and S2. The vendor needs to charge on the basis of these service conditions.
Example:
Item is TOOL-X.
Service1 and condition: Polishing. 25 INR / each.
Service2: and condition: Plating. 8 INR/ sq.mm
As we need to keep account of items given to Vendor (sub-contractor), I selected item category L. But here I cannot put service conditions? Is it possible to put service conditions in sub contract PO?
If I go for item category D (service) I will not be able to account for materials given to subcontractor.
Please suggest how to reflect this scenario in PO.
GanapathiHi
It is always advisable not to put servicable materials in subcontracting.The reason being, every service would add value to the same material ( MAP will change) .If the material undergoes service many times then the Inventory value of the material will be Inflated.Hence to avoid this follow the steps
1) Create a service PO against the vendors
2) Issue the material via MB1B 541
3) Recieve the material through MB1B 542
4) Enter service entry sheet via ML81N
5) MIRO for service vendor
Regards
Sandeep
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