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
KB

it should be clearing account. Because we receive the goods,These goods are need to transfer to toher party.

Similar Messages

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

Sub contract

my client running fg sub contracting (electro plating )cycle through the MRP
after return from vendor with mvt type 105 (543) i check document list with MB51. i found following g/l account effects :
SFG consumption for sub contract account = 602026
Gr/IR Clearing Account = 164335
SFG-inventory account = 323055
for sub contract account = 602130
Inventory account = 320010
Costs of goods mfg = 602200
but if do whole sub contracting cycle without MRP i can see effect in following G/L a/C:
Manual Cycle .
Inventory account = 320010
Gr/IR Clearing Account = 164335
Price Differance Account = 602155
change in stock = 603010
Sub Contract expense = 603000
SFG-inventory account = 323055
SFG consumption for sub contract account = 602026
my question is why this differance comes ?
if i want gl accounts hit by manual process in MRP process what changes to be made ?

Hi,
Price diffrences arise during valuation @ GR if the material is managed at standard price in MMR.
Also there is one more setting in customizing that for a plant that price differences should or not be posted during GR.
spro-IMGMMInv MGmtGR--price differences for subcontracting at GR
Regards,
Deepak.

Sub Contracting Process

my client running fg sub contracting (electro plating )cycle through the MRP
after return from vendor with mvt type 105 (543) i check document list with MB51. i found following g/l account effects :
SFG consumption for sub contract account = 602026
Gr/IR Clearing Account = 164335
SFG-inventory account = 323055
for sub contract account = 602130
Inventory account = 320010
Costs of goods mfg = 602200
but if do whole sub contracting cycle without MRP i can see effect in following G/L a/C:
Manual Cycle .
Inventory account = 320010
Gr/IR Clearing Account = 164335
Price Differance Account = 602155
change in stock = 603010
Sub Contract expense = 603000
SFG-inventory account = 323055
SFG consumption for sub contract account = 602026
my question is why this differance comes ?
if i want gl accounts hit by manual process in MRP process what changes to be made ?

Hi
Kindly check with the following:
In customizing for that plant price differences should or not be posted during GR.
SPRO->IMG>MM>Inv MGmt>GR-->price differences for subcontracting at GR
Thanks

Quantity reconcilation of sub-contracting challan error

Hi Experts,
I am facing problem while doing Quantity reconcilation of sub-contracting challan.
Challan material is different from material document
Message no. 8I572
Thanks in advance

hi..
please go to spro>log general>tax on goods movement>india>business transaction>subcontracting>maintain movment type group
and maintain as given
0001 102
0001 122
0001 541
0001 544 O
0002 542
0002 543 O
and
Also This can be solved as under. ( check for following also)
You will have to activate PO number as a required field for 541 mvmt.
Materials Management -> Inventory Management and Physical Inventory ->
Goods Issue / Transfer Postings -> Define Screen Layout.
For movement type 541 the purchase order field has to be maintained as
an optional entry or as a required entry here. (under normal condition it will be suppressed)
This has not been done, otherwise the error message would appear as the mseg-ebeln would not hold the PO number.
After doing this carryout a new cycle. you will not get any error.
Edited by: Kedar Kulkarni on Nov 12, 2009 6:06 PM

Freight error for Sub Contracting PO

Dear All
I am adding freight conditions in Sub Contracting PO. I want to add that freight value to inventory. So in Schema i have maintained account key as blank for that freight condition type. but while doing GR system is asking GL for FRN key. Why it is asking like this?
What are the setting i have to maintain for above requirement.
Kindly kind me.
Shobana

Hi,
Even if you maintain account key, frieght value will add to the inventory account. You need to maintain GL for FRN, since it is automatic posting.
NOTE: FRN is for delivery costs particularly for subcontract
Definition:
External service, delivery costs (FRN)
This transaction is used for delivery costs (incidental costs of procurement) in connection with subcontract orders.
If the account assigned here is defined as a cost element, you must specify a preliminary account assignment for the account in the table of automatic account assignment specification (Customizing for Controlling) in order to be able to post goods receipts against subcontract orders. In the standard system, cost center SC-1 is defined for this purpose.
Regards,
Prabu

Sub-contracting scenario

Dear Gurus,
We have two manufacturing units,one is an EOU(Export oriented Unit) and the other NON EOU unit.
We get an export order (subcontracting order) for the EOU from a client in country X. Some of the processing is done in the EOU, and then sent to the Non-EOU.
How can I map the material movement between the two units?
Note: The material is maintained as a non-valuated material in both the plants. Since it is maintained as non-valuated, we cannot create a sub-contracting PO when sending the material from EOU to Non-EOU plant.
Regards
Ram

Hi,
I think you are speaking about two subconracting POs:
- one subcontracting PO was issued by your client to your company
- second subcontracting PO is becasue your company manages the production between the business units --> I think you are asking about this
Do the business units belong to the same company code (intra-company process)? If yes, there's no point in speaking about subcontracting.
Re: plant to plant subcontract
Even if it is inter-company (cross-company) process you shoul be able to send non valuated material (component) to special stock (OSS note 80267) via subcontracting PO or you can use STO (as in case of intra-company).
Please specify your question if my answer is not relevant.
Regards,
Csaba

Shortage qty - sub-contract process

hi,
In sub-contract process:
Vendor suppose to return - 10 qty
but, we received only 8 qty.
Vendor has accepted to pay For shortage 2 qty.
1. How to address the above scenario?. (exciseable material)
reg
mrs

Dear ,
case 1) IF GR NOT DONE YET:
do the GR and , at the time of GR increase consumption qty.from 8 to 10.
that means u have comsumed more than required .then raise the debit note for loss.
reconcille the challan by the same GR doc and complete the same.
Case 2)IF GR is allready done.
reconcille the challan by GR document,then do 542 for remainning 2 qty.re4concille the challan by dat document.and complete the challan.
then take a physical inventory of that material for perticular storage location and post the negative difference .syatem showa that as a loss for u then raise the debit note for the same.
regards,
sujit borse

Sub Contracting Values are not flowing in to COPA

Hi,
PP guy has run Sub-Contracting scenario, later when i see the postings in COPA, those are not flowing into COPA. Amount is showing only in FI.
510085 Consumption - Subcontracting =800
520085 Inventory Change - Subcontracting = -5800
How to bring them into COPA report. Please advise me..
Thanks
KB

Add those cost elements to the automatic account assignment table (t-code OKB9) ans click the profitability segment assignment box. If using cost based COPA, assign these cost elements to a PA transfer structure (KEI2) so that they are assigned to the correct value field.
thanks,

Sub Contracting scenario - Material Lost

Hi Experts,
Material is issued to the vendor against the sub-contracting purchase order. The material is lost in the vendor premises.
How to deal with this scenario
Thanks
Tanvi Sunil

Hi,
I think you should negotiate with the vendor who covers the loss - if your vendor pays they can issue a credit memo.
As for stock adjustment you should consider:
- MB1A / MIGO + 551O
- physical inventory
- take components back to your site by MB1B + 542 and scrap it (MB1A + 551) or adjust stock level via physical inventory project
Regards,
Csaba

Sub contracting scrap

Hi,
for which T-codes am using for mvt 544 and 545 to get the scrap from sub-contracting vendor
rgds

hi,
its will be used in case of using special stocks...in tocde MIGO...545, 544- is used for offsetting entry for inventory posting and cost price differences...- its GI receipt sls. or st...with special stock E, O , Q...
554 - MIGO - For GR and GI - withdrawl for scrap from QI sc stock...
Regards,
Priyanka.P
AWARD IF HELPFULL
Edited by: Priyanka Paltanwale on Aug 1, 2008 9:29 AM

Any configuration required from SD about Sub-contracting PO

Dear All,
Need your assistance.I am SD connsultant.
1.   MM team can directly create an outbound delivery from ME2O now.
2.    It creates an outbound delivery and delivery note in the system
3.    The create delivery process is not reducing any inventory in the system until and unless you are not doing any “Post goods issue”.
Now I have some question –
1.    This delivery is an open delivery and we are not posting PGI against this delivery. So what are the next steps should be to handle this delivery?
So from SD point fo view any configuration is required.. Because this has involvement for both SD and MM.
Thanks
Sits

   this delivery is an open delivery and we are not posting PGI against this delivery. So what are the next steps should be to handle this delivery?
So from SD point fo view any configuration is required.. Because this has involvement for both SD and MM.
Don't know where did you read that SD involvement is required in Subcontracting PO.
This is purely related MM.
If you had posted this in MM forum then you would have been answered correctly whether SD involvement is required or not.
Subcontracting PO process is something like we provide raw materiel to the Vendor and he will do the finishing and make a Finished a product and send it to us and for this company pay some labour charges, in this case raw material is kept at Vendor location but the stock is validated in the books of company.
1.Basic requirement for this is BOM should exist in system and we create this using t code CS01.Item category is L in PO and special stock type is O.
2. Maintain info records in ME11 by checking the field sub contracting.
3.Create PO for the finished good with item category L
4. in ME20 Issue the raw materials to Vendor, the move type 541( issue raw material to vendor).
once the raw materials issued then the qty will be shown at Vendor this you can observe in the same t code or you can check this MBLB t code.
5. in MIGO we do receipt (mov type 101) with ref to PO here when the Vendor provide the finished good the raw material gets consumed this happens with mov type 543. This you can observe in MIGO against this raw materials.
This is what exactly Subcontract process happens, in this where exactly you will come across the SD involvement?
Please let me know if you are talking about something different?
thanks,
Srinu.

How to take sub-contracting challana print out

Hai friends,
How to take sub-contracting challana print out.
Where i have to do the message settings for taking return delivery excise document print out ( rejected RM material return to vendor ).
Please guide me.

Hello,
During creation of 57F4 Challan in J1IF01, in Basic Data Tab Page, scroll down the screen, you will get a check box of "Print immediately" just activate it before saving, it will print the Subcontracting challan once you save it.
And to re-print the same go to J1IF11 and activate this indicator again and save.
Configuration Checks: -
SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Subcontracting Attributes > Check whether Subcon Output Type - J1IF is maintained here.
Also check in M706 - For Output Type - J1IF should be in place.
Note: - There is no need of maintaining condition record for output type J1IF in MN21 and also no need to do any further configuration.
Maintain printer in the SPRO - IMG - MM - Inventory management - Output determination - printer determination.- printer determination by plant / storage location ( OMJ3). Here for the application area ME, condition type J1IF, assign the printer.
regards,

Mb1b (sub contract)

while doing MB1b ( for sub contract)
error is
G/L account 799999 does not exist in company code AAA
i tried
fs00
g/l account - 799999
c,code - aaa
the following error comes
" Account 799999 does not exist in company code AAA
and
Account 799999 blocked for creation in chart of accounts INT
what to do
ali

Hi,
For subcontracting process you need to set up following
If Material has Price Control as "V" (MAP)
(BSX) Stock A/c of Assembly - Dr
(BSV) Change in Subcon Stock - Cr
(FRL) Subcontracting Charges - Dr
(WRX) GR/IR Clearing A/c - Cr
(BSX) Stock A/c of Components - Cr
(GBB-VBO) Consumption A/c of Components - Dr
If Material has Price Control as "S" (Std. Price)
If Material is having Price Control as "S" then Price Difference A/c will also in picture.
This depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt
Price Differences for Subcontract Orders at Goods Receipt
In this step, you configure for each valuation area whether price differences are generated for a Subcontract order at the time of a goods receipt if the manufactured material is managed at standard price and the standard price varies from the receipt value (externally performed service + value of components + delivery costs).
Example
Finished product: $400 (value at standard price)
Subcontract order:
o Ext. service : $250
o Components : $100
Posting schema without price differences:
Stock account FERT : 400 +
Stock change : 400 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Compon. stock account : 100 -
Consumption account : 100 +
Posting schema with price differences:
Stock account FERT : 400 +
Stock change : 350 -
Price difference : 50 -
GR/IR clearing acct : 250 -
External service acct : 250 +
Compon. stock account : 100 -
Consumption account : 100 +
And cost center is mandatory for subcontracting process
the accounts for the BSX FRL and GBB-VOB needs the cost elements
Thanks
Diwakar

Sub-Contracting where BOM contains NLAG's

Hi All,
We currently are using the Sub-contracting process but we have an issue with adding a material of type NLAG to the Bill of Materials.
We are getting the error message " Material type NLAG cannot be used with item category L"
If i remove the Inventory Mgmt checkbox in the Item categories table it will allow me to add the material to the BOM.
Is this the only way around this and could it have any possible detrimental side-effects?
Thanks in advance,
Micheal

Hi vikrama,
Thanks for your response. I have done what you said and added the NLAG's using the item category N. However I have another query on this.
If I go through the sub-contracting process of creating a Sales Order which creates a Purchase Req which we convert into a PO, the NLAG components are not visible in the PO.
However if I create a PO direct, all the components of the BOM are visible.
Does anyone have any ideas why this may be so?
Thanks in advance,
Micheal
Edited by: Micheal McGrath on Jan 3, 2008 3:45 PM

Sub Contracting-Inventory GL shoule be P&L or Clearing Account?

Similar Messages

Maybe you are looking for