Subcontracting GR/IR postings

Dear All
I have some basic doubts on subcontracting process, though i have searched the FORUM but nowhere it is explained in a way i wanted.
I have created a subcontracting order for a product X, which is made up of 5 components (A,B,C,D and E).Now i am supplying component A,B and C where D and E needs to be put by vendor.
Suppose evrything is done(GR and IR)
Now my query is for a normal process at the time of GR it is showing 6 entries, can nybody explain in details about these entries (why 6, and for what ).
similarly how many entries should be there after MIRO for a normal subcontract process.
Thanks
Robert

Hi,
I have only just seen the post for the first time, I do have a day job as well ;-).
My response (not beautiful) is as follows.
the postings at Gr are basically
The cost of the components (qty of each X std or MAP of each) is consumed from the stock account/s (beacuse they have been consumed in the process). This total
is then added to the price from the PO (the charge for the service)
this gives the total cost of the subcontract process.
this total value is then posted to the stock account of the "finished item", (if the item is std priced the std price value is posted and the rest goes to a price variance account.)
the line for the value due to the vendor is the qty of finished item X price from the PO.
If you want this explained differently, let me know.
Steve B

Similar Messages

Setting in ME38(Urgent)

Dear Experts, Good Morning!
Our client wants to use Scheduling Agreement with Sub Contracting...for this we must maintain components to be provided,and where we mention like in Sub Contracting PO....?
In ME38->Item->Components->New BOM Explosion...what it means?For our client this option is showing in grey field,can any one tell me how to get this option in required or optional mode????
Please do reply me.
Regards
MK

Hi,
Let's discuss the basics first.
In SAP. sub contracting purchasing document supports one major process in which a company provides components required for an assembly and orders from a vendor. It could be a simple PO, or a PO created from a Contract or a scheduling agreement delivery schedules. All these however, will have a unique feature that controls subcontracting procurement just nothing but "Item Category" L - Subcontracting. This one drives the rest of the process. This L demands for a BOM to be maintained (planned) in CS01 transaction. It basically covers the list of components and quantities (it may even include drawings) for manufacturing some base quantity (say 100). When a subcon PO or a subcon delivery schedule for scheduling agreement is created, it will use the bom to view your area of concern: components overview.
Using MB1B or ME2O you can transfer components required for subcontracting PO, via transaction 541. This transfers your components to vendor. When vendor delivers finished product, you will receive using MIGO (101 mvt ty). While receiving FG,. it automatically consumes components using 543 mvt type.
Hope, this clarifies briefly about S/C scheduling agreement, delivery schedule, and associated process. For extensive details about subcontracting, view my postings....
Regards

Account postings in GR & IR for Subcontracting

Hi Experts,
I need to know the account postings for both GR & IR during Sub contracting.
Let us take the scenario . .
PO price - 1000(Gross) + 200(Tax) = 1200 (Net) for 1 Qty
GR - PO Net Price due to Moving Average price.
IR - 1200(Gross) + 240 (Tax) = 1440
Please explain the accounting entries during Goods Receipt and Invoice Receipt.
By
Prabhu

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 +
hope it help

Accounting postings for subcontract PO goods receipt

Hi,
Can someone please explain the accounting postings that occur when a subcontract PO is received? I understand the usual inventory and GR/IR account entries. But there are 2 additional account entries for transaction keys FRL and BSV. These appear to be posted for the material being received, not the one being supplied to vendor (this one is $0 in our system).
Thanks in advance,
-Den

When you post a GR for the ordered material (the end product), the system determines the components and creates a goods issue item for each component. The GR document consists of the following items:
1.Goods receipt items for the materials supplied by the vendor
2. Goods issue items for the components
Here is a link that explains the postings
http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b90bd43ad11d189410000e829fbbd/content.htm

Trying to understand the 101 543 subcontract postings

I am activating subcontract functions in a retail environment. Every thing is working however I do not understand why SAP is posting the consumption of the component with 3 line on the accounting document that net to zero. EXAMPLE:
Itm PK Account    Cost Ctr   Account short text   Assignment         Tx           Amount
   1 89   603          888        Inventory-Interface 20080820                                1.22
   2 96   3910                     A/P unmatched GR/IR 20080820                          0.76-
   3 91   600          888        Inventory-Cost Var   20080820                              1.22-
   4 86   600          888        Inventory-Cost Var   20080820                               0.76
   5 99   933                       Raw Mat Inventory    20080820                              0.46-
   6 81   600          888        Inventory-Cost Var   20080820                               0.46
If anyone can help me explain line 3, 4, and 6. Since they net to zero why are they here. FYI, we use moving average price. Please help me understand as I am not an accountant and the controller is asking me why?

Joe,
The posting are controlled by the automatic account configuration in transaction OBYC. You change which accounts are posted to here. The multiple postings may be a breakdown of the material postings associated with the components sent and the material recieved. Hope this helps.
Edited by: Zachariah David on Aug 27, 2008 8:24 PM

Subcontracting Account Postings

Hi,
Can any body explain me what are the posting happen during Subcontracting cycle, After GI and after GR (101 and 543).
What might be the difference if we used price control V or S.

Accounting Entries for a Subcontract Order
You check an invoice for a subcontract order in the same way as for a standard purchase order.
Additional account postings do, however, occur if a price variance has occurred. These postings are shown in the following example :-
Postings for a Subcontract Order
In this example, a subcontract order was created for the end product "ASSEM-1". The components COMP-1 and COMP-2 were provided to the subcontractor.
Purchase Order
50 pieces of material ASSEM-1 were ordered. The subcontract price is $10/piece (total value = $500).
The following components were provided to the subcontractor:
15 kg   of the component COMP-1
   5 pcs of the component COMP-2
Good Receipt
The subcontractor delivers 50 pieces of material ASSEM-1.
At goods receipt a consumption posting for the components provided to the subcontractor is automatically made. It is valuated at the price from the material master record, for example:
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).
Invoice Receipt
The vendor (subcontractor) sends you an invoice for the subcontract work. However, the price is $10.50/pc. The invoice is, therefore, 50 pieces ASSEM-1 * $10.50/pc = $525.
Posting Schema for Moving Average Price Control
In this example, the following postings are made at goods receipt and invoice receipt, if the material (end product) is valuated at moving average price:
Postings
      At goods receipt
      At invoice receipt
      Vendor account
              525 -
      GR/IR clearing account
              500 -
              500 +
      External service account
             500 +
               25 +
      Stock account: end product
             950 +
               25 +
      Stock change
             950 -
               25 -
      Stock account: comp.
              450 -
      Consumption account
             450 +
Posting Schema for Standard Price Control Without Price Differences
For materials (end products) with standard price control also note that no price differences are posted if the total of the external service value (for example, $500) plus the "material to be provided" value (for example, $450) varies from the value at standard price (for example, $1000). Posting of a price difference is not required because each posting line has its own
offsetting entry.
No posting lines are created on the stock account or on the stock change account when an invoice is received.
In the above example, the following postings are made for a material with a standard price of $20:
Postings
     At goods receipt
     At invoice receipt
     Vendor account
          525 -
      GR/IR clearing account
          500 -
          500 +
External service account
         500 +
           25 +
Stock account: end product
       1000 +
Stock change
       1000 -
Stock account: comp.
         450 -
Consumption account
        450 +
Posting Schema for Standard Price Control With Price Differences.
However, if you wish to generate a price difference posting in those cases where 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), you can configure this in the Customizing system of Inventory Management.
In the above example, the following postings (including price differences) are made for a material with a standard price of $20:
Postings
       At goods receipt
       At invoice receipt
Vendor account
       525 -
GR/IR clearing account
       500 -
       500 +
External service account
       500 +
         25 +
Stock account: end product
     1000 +
Stock change
       950 -
Price difference
        50 +
Stock account: comp.
        450 -
Consumption account
       450 +
Regards,
Ashok

Account postings in GR for Subcontracting

Hi Experts,
As I know, for GR of subcontract PO, Price Difference (PRD) A/c will also in picture should depends on configuration; SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Price Differences for Subcontract Orders at Goods Receipt'.
I hit an issue for that. We didn't select the indicate for the Price Differences for Subcontract Orders at Goods Receipt but active the material ledger functionality for the plant. The company code currency is SGD and group currency is USD.
Then when do the GR of subcontract PO, there are two finance document created. One is for 101 E which document currency is USD, the other one is 543 O for component consumption which document currency is SGD.
Now the issue is for the 101 E document. Although we didn't select the indicate 'Price Differences for Subcontract Orders at Goods Receipt' , but the PRD is still posted here.
Could you pls tell me how that happens and what is the control?
Appreciate your help!
Thanks
Jimmy

Sorry, forget to show the posting. Below is the detail.
101E posting:
Itm PK Account    Account short text   Tx Trs           Amount     Amount in LC       LC2 amount
1 89 13420000   FG Inventory Mat       BSX          100.00           139.00           100.00
2 96 23900306   AP Accr Clearing        WRX           20.00-           27.80-           20.00-
3 93 35220000   Material Price Var      PRD           22.45-           31.20-           22.45-
4 91 35280000   Mat Qty Variance        BSV           77.55-          107.80-           77.55-
5 86 35280000   Mat Qty Variance        FRL           20.00            27.80            20.00
543O posting:
Itm PK Account    Account short text   Tx Trs           Amount     Amount in LC       LC2 amount
1 99 13100000   PurParts&RawMatInv      BSX           80.00-           80.00-           57.55-
2 81 35280000   Mat Qty Variance        GBB           80.00            80.00            57.55

Subcontracting - Transfer Postings

Hi All,
I request your help in resolving following issue.
Customer has continuous subcontracting process.
I need to track all transfer posting material documents based reference documents (i.e. PO). Is there any way otherthan MB51 and using 541 movement type to get these documents.
When I use this it is difficult for me to segregate based on material.
Please help.
Best Regards
Rahul

Hi
You can track the transfer posting in MSEG table if you have used PO as reference.
If PO is not used as reference then you can not link it with the PO.
ME2O is the best option to monitor the subcontracting activities.
MBLB will give you the stock exist at vendors place.
hope it helps
Thanks/Karthik

Error while posting GR for subcontracting process

Dear Friends,
while creating a GR for a subcontracting PO, I get the following error. please suggest what to do. i checked the configuration for the movement type and could not come up with the solution.
Fld selectn for mvmt type 543 / acct 7449990 differs for Vendor goods movement (014)
Message no. M7093
Diagnosis
Comparison of the field selection strings from movement type 543 and G/L account 7449990 has revealed that there is an incompatible field selection combination at one or more points.
Field for which the field selection is different: Vendor goods movement
Example
On the movement type screen, a given field is a mandatory-entry field, whereas on the G/L account screen, the same field is suppressed.
System Response
You cannot post this transaction, unless you have changed the field selection adequately.
Procedure
Contact your system administrator.
Action to be taken by the system administrator
Check whether any postings resulting from this movement type are to be made to the G/L account determined automatically. If you find that the G/L account is not correct, check the automatic account determination in the Customizing system for valuation.
Proceed
If the G/L account is correct, use the report RM07CUFA to compare the field selection for the movement type with the field selection for the G/L account and change the incorrect settings or the field status group of the G/L account.
Proceed

The field is mandatory in acct 7449990 and hidden in movement type 543 or vice versa. To check the field status for that movement type, you can run the program RM07CUFA
Once you execute this program and found that the field is set to mandatory, then it should be mandatory for that movement type field status also.
Alternatively, Go to txn OMJJ, click on Movement Type and execute. There double click on "Field selection (Enjoy) and see whether the movement is maintained as Required Entry or Optional Entry.
Now go to FS00, input the G/L Account 7449990 and execute. There go to tab Create/bank/interest and chech whether you have maintained any value against "Field status group" and also you have checked the box for "Post automatically only".
This should be done in consultation with FI people only if the issue is in production client.
thanks
G. Lakshmipathi

Serial numbers for subcontracting process

Hello Experts,
We are using SAP ECC 6.0 and trying to implement the subcontracting process with serial numbers. This scenario is focused on those materials that we need to keep track on how many times it has gone to repair (for example, a motor) by specific item. Suppose there's a material called "Material A". However, there are MANY "Motor A"'s, and thus, the need for serial number to keep track on the number of repairs each one has had.
So, having said that, the scenario is working so far. However, the user CAN'T type in the serial number of the material at the REQUISITION LEVEL. This can be done at the PO level and at the goods receipt level.
This brings a problem since the Purchasing dept. doesn't know the serial number. This information is known by the user, but there's "serial number" functionality in the requisition. Is there a configuration for this? Could it be possible for the serial number to be in the requisition and then inherit it to the PO?
We want this in order to automate the process.
The configuration we made was in the "Plant Maintenance and Customer Service" section, using procedures MMSL "Maintain goods receipt and issue doc." and POSL "Serial numbers in purchase orders". There's no procedure for purchase requisitions. If this can be also done from a Work Order, that will be just fine.
Let me know if it is possible or if you have any idea on how to do this.
Regards,
Gilberto Gallardo.

Hi,
Serial no can be used for the following business transactions.
1. Goods Receipt/Goods isssue and other inventory postings.
2.sales orders and delivery notes
3.maintenance orders
4.production orders.
Settings:
1. create a serial number profile in customising.
2. Assign the serial number profile in the material master record in work
scheduling view for fert and raw material in plant data / stor2 view..
Business procedures may be assigned in configuration to a serial number profile.
The assignment to the serial number profile determines if serial numbers are required , can be assigned, must be assigned,are assigned automatically
MMSL : Goods issue , receipts,stockj transfers,stock transport orders
Thanks
nandha

Vendor payment in subcontracting

Hi All,
In the subcontracting process how do we pay the vendors. What are the different options available. Do we pay the vendor wih respect to PO at the time of goods receipt.
I have good knowledge of Subcontracting pocess. I dont know the postings of financial documents.
Please advise.
Sanjay

Dear,
As per your mail you have good knowladge for subcontracting process.
So when you receive your material against purchase order.
At that time vendor send his bill of material and challan.
With reference of challan you have to create good receipt against purchase order with MIGO.
Then with reference of good receipt document, You have to create Vendor Invoice Verification with MIRO. You can take reference of challen number for miro.
At the time of invoice party will be credit and GR/IR will be debit.
Regards,
Mahesh Wagh

Business area required for subcontracting GR

Dear Experts,
In subcontracting scenario while executing GR; if we enter PO number, system proposes the component.
We have expand / collapse button which allows us to see which are the materials (BOM) getting consumed for component we are receiving.
My problem is if we expand the material tree, then for each line item of sub components I need to enter business area. If the list is too big, it is very time consuming to enter business area for each component.
Request to convey me any standard setting which copies business area automatically for sub components.
Regards,
Yogesh

Dear Yogesh,
Firstly can you please check your settings in OMBW for tcode MB01
Please check whether business area is not suppressed in your system
in transactions OMCJ and OMBW and take into account that the system
fills the business area in the vendor item if a business area can
explicitly be determined from the offsetting entries. If several
business areas were used for the offsetting entries, the field in
the vendor item is not filled. Also please check whether material is
assigned to division and whether in transaction OMJ7 is correctly set.
Also, Can you please review the attached note :
      17483 : Business area for inventory postings
Can you please review the attached notes
367813 KI235 for goods movements: What should be done?
Special stocks E/Q:
   As of Release 4.5, for special stock E/Q the sales order or the
   WBS element is primarily the key for the special stock.So that
   the sales order or the WBS element is also copied as the account
   assignment, the field selection for both fields must be
   maintained (Notes 117596 and 110675).
   117596 KI235: GI from Q/E stock (Customizing) or M7073
   110675 Valuated sales order or project stock: Error KI235
Please call the transaction OMBW and ensure that the field selection for
WBS-element (Project) is set as "Optional" (instead of Suppress).
Then please retest the reported issue.
I hope this information can be of help to you.
Best Regards,
Arminda Jack

Cost of subcontracting

dear all:
I have a problem about subcontracting need help.
before, these is no any material need subcontracting in our company,but now our
company will produce new product whick its a component material need subcontracting.
We will:
    1.we will send the component material (we can call it a001) to vendor (movement type 541) using t-code mb1b.
then we recieve the material b001 from vendor(movement type 101),and recieve the
material a001 (movement type 543) using tcode migo.
I have already setted:
1.i have already maintained the costing variant for the subcontracing using tcode okkn.
2.i have already created purchasing information record for the material b001 using t-code me11.
3.i have already created a balance sheet account 12320198 to collect the cost of subcontracting .(but i don't kown whether the account 12320198 should be the p&l statement acc. if yes is it necessary to create cost element for it,and assign a cost center to the cost element.)
4. i have already assigned the account 12320198 to the type FRL using tcode obyc.
5. i have already successfully make the standard cost calculate for b001 using tcode ck11n.but i don't kown is it correct.
my problems:
1. what should i do to collect the cost for subcontracing?
    can any friend tell me the full flow about it,or give me some detail documents about it.
2.what the account documents the system will create when i recieve the material b001 from vendor using tcode migo,and when i verify the invoice using tcode miro.i.e what should i setting for the tcode migo&miro in this case.
3.i don't kown wheher it's accurately that i have already setted.
i really need your help.
thank you a lot.
best regards!
Message was edited by:
        zhao gang
null

Please help me!!
I have an error!
Fld selectn for mvmt type 543 / acct 2026800 differs for Cost center (010)
Message no. M7093
Diagnosis
Comparison of the field selection strings from movement type 543 and G/L
     account 2026800 has revealed that there is an incompatible field
     selection combination at one or more points.
Field for which the field selection is different: Cost center
Example
On the movement type screen, a given field is a mandatory-entry field,
     whereas on the G/L account screen, the same field is suppressed.
System response
You cannot post this transaction, unless you have changed the field
     selection adequately.
Procedure
Contact your system administrator.
Action to be taken by the system administrator
Check whether any postings resulting from this movement type are to be
     made to the G/L account determined automatically. If you find that the
     G/L account is not correct, check the automatic account determination in
     the Customizing system for valuation.
     Proceed
If the G/L account is correct, use the report RM07CUFA to compare the
     field selection for the movement type with the field selection for the
     G/L account and change the incorrect settings or the field status group
     of the G/L account.
     Proceed
Do you know what to do??
Thanks!!

Subcontract Challan closure

Dear Sir,
We have a following scenario :
We prepared a Subcontract Purchase Order of 3 nos qty and made a Subcontract Challan of 3 nos qty of the Material .
Subsequently Vendor processed the 1 number quantity and we did the GR for 1 number qty . We did the Challan Reconciliation against this GR for 1 number qty .
Later on due to some problem at Vendor site , Vendor has returned 2 numbers qty of the Material without any processing (ie same Material has been returned which was given to Vendor ) .
We have short closed the PO .
Our Problem is that there is still Pendency appaering of 2 nos qty against this Challan .
Kindly guide us as what steps need to be followed so that Challan has no pendency of the Material .
With Thanks and Rgds
Sonia

Hi,
This is can be changed in to customizing.
In customizing,
logistics general->Tax on goods movement->India->business transactions->suncontracting->subcontracting attributes->
EI items change the number of line items per challan. Whatever the value you maintain here (This information is used to split the transfer postings' items into multiple subcontracting challans), challan will contain those many line items.
Regards,
Krishna A S V

Special Procurement using Subcontract & Consignment Hybrid

customer req:
Is there a way to make an external procured material both subcontract and consignment?
My research has concluded that you can only assign one special procurement method (i.e. consignment (K), or subcontract (L)) to a special procurement type for MRP. Therefore, my challenge to all of you is to help me find a way to procure a subcontract part (i.e. the material has components below it in the BOM), but post goods receipt the material into consignment stock. The components for the material must also be issued (543 O movement type) during the posting of goods receipt.

Hi,
As I said, you cannot do this without causing problems with the GL postyings unless all of the items are Zero value.
You need to consider what you are trying to do. You are trying to create a finished product from some somponents and a service provided by the subcontractor. You are then saying that this material (that has value) is going to be passed to consigment stock and consignment stock is not yours, it has no value and does not show in any GL.
So effectively you are asking for a situation where a stock item with value can be moved to a vendors consigmnet stock.
I really need to know why you think that you need to move it to consignment stock? Which vendor would you use, who would you pay when iot is consumed and how much would you pay? Why is it your stock when you have the components, still your stock when the finished product has been produced but then it suddenly becomes the vendor's stock.
So the main difficulty is passing the ownership of the item to a vendor.
Could you possibly use a copy of the write-off movement type to remove the stock from your ownership? You could then reverse this when you want to bring it back? But I guess that you may want to have some stock visibility and this would not achieve this?
The other option is to have the components valued at ZERO, raise the subcontract PO also with a value of ZERO (switch off the IR flag). Then you will have a zero value item and NO postings during the process. You still won't have it in consignment stock because I think that a 412 movement may cause a credit for the value of the consignment stock (not sure though).
Basically I can see perhaps why you might need this but I would probably suggest that you do one part or the other on SAP and do the other part off system (subcontract or Consignment). So treat it all as consignment stock but consume the components som other way.
Sorry if this rambles a bit but I have been interrupted 10 times while writing this (day job!)
Steve B

Subcontracting GR/IR postings

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