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Subcontracting Accounting Calculation

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Hi,

I am having some confusion about the subcontracting GR accounting, As per my understanding:

FG stock = consumption of RM+PM + Subcontracting charge (GR/IR)+ price difference (if any)

But i am getting the below entries, where the above equation is not matching.

  • BSX 89 ST Finished Material 30.25
  • WRX 96 GR/IR Finished good 40.00-
  • BSV 50 CIS Subcontracting 30.25-
  • FRL 86 Sub Contracting Exp 40
  • BSX 99 ST Raw Material 1.25-
  • GBB 81 Consumption Raw Mat. 1.25
  • BSX 99 ST Packing Material 5.00-
  • GBB 81 CON Packag Material 5
  • BSX 99 ST Packing Material 4.00-
  • GBB 81 CON Packag Material 4

So in above consumption of material = 10.25 and GR/IR for vendor = 40 and FG stock debit = 30.25,

FG price is taking from FG standard cost and GR/IR taking from PO Net value. and no Price difference account hit.

Let me know what would be an accurate accounting entry and what needs to be done for that.

Thanks

RAIM

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Answers (1)

Answers (1)

former_member513101
Active Contributor
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Hi RAIM,

The posting is correct and it is sap standard with FG with standard price. If you sum up all the P&L cost, you will get balance = 20. Add the 20 to FG standard cost 30.25. You will get actual material cost 50.25.

If your FG is MAP

  • BSX 89 ST Finished Material 50.25
  • WRX 96 GR/IR Finished good 40.00-
  • BSV 50 CIS Subcontracting 50.25-
  • FRL 86 Sub Contracting Exp 40
  • BSX 99 ST Raw Material 1.25-
  • GBB 81 Consumption Raw Mat. 1.25
  • BSX 99 ST Packing Material 5.00-
  • GBB 81 CON Packag Material 5
  • BSX 99 ST Packing Material 4.00-
  • GBB 81 CON Packag Material 4

Same calculation. If you sum up all the P&L cost, you will get balance = 0. the actual FG cost is 50.25.

Thanks