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MIRO for subcontracting

former_member1275554
Active Participant
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Hello friends,

We have as scenario as follows.

In a subcontracting PO, 20 kg of FG is ordered against supply of 22 kg of raw material & 2 kg of scrap which gets generated in process. Now GR is done for 20 kg of finished goods & 2 kg of scrap. In MIRO system picks up the GR quantity & Price for finished goods which is 20 kg. But actually vendor has processed 22 kg of material & he has charged accordingly. How to capture processing charge for 22 Kg. of raw material in MIRO? One way out seems to be changing the value in MIRO. Is there any other way to overcome this?

Thanks in advance

Sandeep

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Answers (2)

Answers (2)

former_member1275554
Active Participant
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any comments?

Former Member
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Service Charges are apply on finished goods not on raw material issued to Subcontractor. You should ask your subcontractor to quote a charges for making a ctn or 1 Kg finsihed good. In this case either raw material issued extra or below the service charges remains same.

Regarding your query it is not standard practice to trigger service charges on issued material.

If it helps, kindly give points.

Regards,

RM