Subcontrct Details

Accounting entries for subcontracting https://archive.sap.
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1 of 13 3/27/2017 10:02 PM
Accounting entries for subcontracting https://archive.sap.com/discussions/thread/1323970
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Accounting entries for subcontracting
Dear Experts,
Please explain the accounting entries for subcontracting process in details.....
sap_erp_logistics_materials_management, enterprise_resource_planning
(https://people.sap.com/aritra.mukherjee3)
ARITRA MUKHERJEE (https://people.sap.com/aritra.mukherjee3)

November 30, 2015 at 11:58 AM
3 Likes
2 of 13 3/27/2017 10:02 PM
Correct Answer
(https://people.sap.com/priyanka.paltanwale)
Priyanka Paltanwale (https://people.sap.com/priyanka.paltanwale) replied April 29, 2009 at 05:35 AM
hi,
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 +
3 of 13 3/27/2017 10:02 PM
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Correct Answer
Priyanka Paltanwale (https://people.sap.com/priyanka.paltanwale)replied
April 29, 2009 at 05:35 AM

hi,
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 >
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 +
4 of 13 3/27/2017 10:02 PM
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:
Compon. stock account : 100 -
Consumption account : 100 +
Posting schema with price differences:
Price difference : 50 -
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
Regards
Priyanka.P
ARITRA MUKHERJEE (https://people.sap.com/aritra.mukherjee3)replied
April 29, 2009 at 05:54 AM

Hi Priyanka,
5 of 13 3/27/2017 10:02 PM
The entries which you had given happens at the time of Transfer
posting????Please explain what are the entries happen during 541 and 101
for FG in both cases.
Priyanka Paltanwale (https://people.sap.com/priyanka.paltanwale)replied
April 29, 2009 at 06:00 AM

hi,
In 541:
Stock A/c of Assembly - Dr
Change in Subcon Stock - Cr
Subcontracting Charges - Cr.
GR/IR Clearing A/c - Cr
Stock A/c of Components - Dr.
Consumption A/c of Components - cr.
At 101 :
Stock A/c of Assembly - Cr.
Change in Subcon Stock - Dr.
Subcontracting Charges - Dr
GR/IR Clearing A/c - Dr.
Stock A/c of Components - Cr.
Consumption A/c of Components - Dr.
Hope it helps..
Regards
Priyanka.P
(https://people.sap.com/sambit.mohanty2)
Sambit Mohanty (https://people.sap.com/sambit.mohanty2)replied
6 of 13 3/27/2017 10:02 PM
April 29, 2009 at 06:36 AM

Hi Aritra
Please also
remember that no
accounting
documents gets
generated during
MB1B and 541
transaction against
the PO. It in only
when we receive the
material back against
101 the entries
mentioned takes
place and stock gets
reduced and account
postings happen.
Also sometimes if you

have freight the key
FRN also gets used.
Regards
Edited by: samuel

mendis on Apr 29,
2009 6:34 AM
Edited by: samuel

mendis on Apr 29,
2009 6:35 AM
May 15, 2009 at 06:41 AM

Hi Priyanka,
R u sure about the accounting entries

as u told which is as follows:-
In 541:
Stock A/c of Assembly - Dr
7 of 13 3/27/2017 10:02 PM
Change in Subcon Stock - Cr
Subcontracting Charges - Cr.
GR/IR Clearing A/c - Cr
Stock A/c of Components - Dr.
Consumption A/c of Components - cr.
At 101 :
Stock A/c of Assembly - Cr.
Change in Subcon Stock - Dr.
Subcontracting Charges - Dr
GR/IR Clearing A/c - Dr.
Stock A/c of Components - Cr.
Consumption A/c of Components - Dr.
Priyanka Paltanwale (https://people.sap.com

/priyanka.paltanwale)replied
May 15, 2009 at 06:52 AM

hi,
Extermely sorry for my last post...
There will be no account entries

at transfer posting 541..
While the account entries will be

at 101 those are:
Unfinished product : +
Gr/IR : --
Cost of goods sold : --
Purchased services : +
Inv. raw material : --
Raw material consumption - +
Regards
Priyanka.P
8 of 13 3/27/2017 10:02 PM
ARITRA MUKHERJEE (https://people.sap.com

/aritra.mukherjee3)replied
May 15, 2009 at 07:04 AM

Dear Priyanka,
As you told,
While the account entries will be

at 101 those are:
Unfinished product : +
Gr/IR : --
Cost of goods sold : --
Purchased services : +
Inv. raw material : --
Raw material consumption - +
means, (BSX)Stock Acc of

Assembly--Dr
(WRX)--Cr
(BSV)-Dr
(BSX)Stock Acc of
Components-Cr
(VBO)-Dr
Then what about FRL and FRN

?Please clarify me
Priyanka Paltanwale (https://people.sap.com

/priyanka.paltanwale)replied
May 15, 2009 at 07:10 AM

FRL will be debit (Because you
pay for the subcontracting work
9 of 13 3/27/2017 10:02 PM
done)and Freight will be credit(Because you send the

material and need to get charges for the same...
Regards
Priyanka.P
ARITRA MUKHERJEE (https://people.sap.com

/aritra.mukherjee3)replied
May 15, 2009 at 07:27 AM

Thanks a lot Priyanka...
I need a small favor from you

regarding the Accounting
entries for Imports
Please tell me the Accounting

entries in case of imports at every
stages imean
1.Entering Invoices for Bills of

Entry
2.Capturing Excise Invoices for

Bills of Entry
3.GR
4..Posting Excise Invoices
Edited by: ARITRA MUKHERJEE

on May 15, 2009 7:26 AM
(https://people.sap.com/shrinivas.gangoor2)
Shrinivas Gangoor (https://people.sap.com

/shrinivas.gangoor2)replied
May 15, 2009 at 07:57 AM

Hi
these are the accounting entries

during Import
10 of 13 3/27/2017 10:02 PM
Import Procurement of Raw Material
During Customs Duty Clearing invoice
Custom Clearing Dr.
Custom Payable Cr
During Excise Invoice Credit
Cenvat Account Dr.
Custom Clearing Cr.
During Invoice Verification
GR/IR Clearing Dr.
Vendor Payable Cr.
with regards
shrinivas gangoor
(https://people.sap.com/gyaneshkumar.jha)
Gyanesh Kumar Jha (https://people.sap.com

/gyaneshkumar.jha)replied
May 07, 2010 at 05:28 AM

Hi,
I want to add VAT component for

Subcontracting vendor.
Can some body tell me the

condition type to be used.
Gyanesh
(https://people.sap.com/anil.kumar208)
Anil Kumar (https://people.sap.com/anil.kumar208)replied
December 29, 2011 at 07:06 AM

Hi ,
May be coming in between
11 of 13 3/27/2017 10:02 PM
but need clarification on Purchase account....
client wants to use the Purchase account instead of

Inventory account.
As per SAP, while Goods receipt time, based on a/c

determination Posting to inventory
Inventory A/c Dr
To GR/IR A/c Cr
As Client expecting
Purchase A/c Dr
To GR/IR A/c Cr
Main Three concerns
1. If I am using the Inventory account, how will I see my

purchase?
2. As purchase Account capture my supplier bill amount

but inventory is capture Supplier bill add with fright +
Insurance +... hence same inventory value use to
Goods Issue for production. Hence I need purchase
account separately
3. Finally, Even he wants to show Balance sheet as

Schedule IV.
Now I request is there any strong point to overcome and

convince the client
Thanks
Anil
(https://people.sap.com/jeyakanthan.a)
Jeyakanthan A (https://people.sap.com/jeyakanthan.a)replied
December 29, 2011 at 07:52 AM

Raise your question as
separate thread.
12 of 13 3/27/2017 10:02 PM
The message was moderated
April 29, 2009 at 05:57 AM

Please explain the entries at the time of 541 and 101
13 of 13 3/27/2017 10:02 PM

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/ Archives (/) / Discussions Archive

Please explain the accounting entries for subcontracting process in details.....

ARITRA MUKHERJEE (https://people.sap.com/aritra.mukherjee3)

Priyanka Paltanwale (https://people.sap.com/priyanka.paltanwale) replied April 29, 2009 at 05:35 AM

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)

Price Differences for Subcontract Orders at Goods Receipt

Finished product: $400 (value at standard price)

o Ext. service : $250

Posting schema without price differences:

Stock account FERT : 400 +

Stock change : 400 -

GR/IR clearing acct : 250 -

External service acct : 250 +

Ask a question (https://answers.sap.com/questions/ask.html?primaryTagId=477297786799213261950044802925335)

Priyanka Paltanwale (https://people.sap.com/priyanka.paltanwale)replied

April 29, 2009 at 05:35 AM

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

This depends on configuration; SPRO > MM > Inventory

Price Differences for Subcontract Orders at Goods Receipt

In this step, you configure for each valuation area whether

value of components + delivery costs).

Finished product: $400 (value at standard price)

o Ext. service : $250

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 -

GR/IR clearing acct : 250 -

External service acct : 250 +

Compon. stock account : 100 -

Consumption account : 100 +

And cost center is mandatory for subcontracting process

ARITRA MUKHERJEE (https://people.sap.com/aritra.mukherjee3)replied

April 29, 2009 at 05:54 AM

Priyanka Paltanwale (https://people.sap.com/priyanka.paltanwale)replied

April 29, 2009 at 06:00 AM

Stock A/c of Assembly - Dr

Change in Subcon Stock - Cr

Subcontracting Charges - Cr.