How is scrap accounted in subcontracting?
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Answer / satya
Go through the following steps.
1. Say i am providing three components A, B & C to get
ASSEMBLY from sub contractor vendor.
2. Create a Material master for Scrap material say D.
3. In BOM, maintain the Material D in negative quantity,
Say A - 1 off, B - 2 off , C - 2 off, D - 1 kg.
4. Now follow the regular process of subcontrating.
5. When you want to inward the scrap material from the
subcontractor end, first receive the material D with the
movement type 545 ( This will make the material available
in material provided to vendor stock ).
6. Then do a GR with 542 movement type to get the scrap
material in to plant stock ( ie reversal of 541- Goods
issue movement type)
Is This Answer Correct ? | 17 Yes | 8 No |
Answer / nainpal
You receive finished material against SC-PO. You also specify
components consumed in manufacturing of finished goods.
Additionally, if you have negative components in BOM, now
you'll also receive subcontracting by-products. There are
three events, so three accounting entries are generated:
Is This Answer Correct ? | 0 Yes | 3 No |
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