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Substitution rule for STO - changing business area.

former_member221515
Active Contributor
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Hello Experts,

We are transferring stock from one plant to another plant. Each plant is business area. We are doing stock transfer at some profit element of Rs. 250. Transfer is done from Business Area D002 to Business Area D001.

When we do outbound delivery, it posts following entry:

Stock A/c... Dr (Business Area D001) Rs.1250

    To Stock A/c (Business Area D002) Rs.1000

    To Profit on transfer (Business Area D001) Rs.250

However, I want to substitute business area for third line. I want that, business area D001 should be replaced with business area D002. However, there is some substitution rule for the same. Please tell me, how this substitution can be done.

Please help

--

Deepak

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Answers (1)

Answers (1)

former_member183424
Active Contributor
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What is your price control for your material for both plant ?

What is the process for your stock transfer ?

However, as of my knowledge, you can't achieve this accounting entry in standard.

See, if you are using MAP for material for both plant, then accounting entry will be

Stock A/C debit for plant D001

Stock A/C credit for plant D002.

If you are using standard price for material, then accounting entry will be

Stock A/C debit for plant D001

Stock A/C credit for plant D002

Price diff account credit or debit (as per the price difference for material price for both plant).