General parameter SCOIFA – EO WIP posting activates the subcontract WIP posting.

In Setup, General parameters, Parameter values, ACH Purchase, ACC Accounting interface, SCOIFA.

• When it’s set to Yes – The subcontracting WIP posting is carried out thru the function WIP posting (FUNWIPACC) with the automatic journal entered in the general parameter ACCWIPEOA – Sub-con WIP auto journal.

• When it’s set to No – The subcontracting WIP posting is carried out from the Account. interface (FUNSTKACC), when the setup ACCIFA – Accounting interface is set to ‘Yes’. In this case you need to assign an automatic journal code in the receipt’s entry transaction.

Now let’s create a subcontract order and complete the receipt posting using the FUNSTKACC to generate the accounting documents.

Subcontract setup:  

• SCOIFA = No, ACCIFA = Yes, and STD purchase receipt entry transaction subcontracting stock automatic journal = STKRC.
• In Common data, BOMs, Sub-contracting BOMs create a subcontracting BOM by selecting a parent product and three components where the type of supply = To be sent to the subcontractor.

• Subcontract parent product category flow types, Subcontracted field is checked.

• Under Suppliers tab of the product record, assign a supplier who is also a customer and assign a subcontract BOM.
• Product- site valuation method = STD.

• Components product record should have a default supplier assigned and a product site record.

• Service product is a non-managed item. You can create a price list to manage its cost.
• Make sure you have enough material in hand in an internal location.

• Common data, BPs, Customers, select the customer and in the Ship-to customer tab under delivery grid, select the shipment site, and a subcontract location for the sub contract address.

Subcontract process:

• Purchasing, Subcontract, Subcontract orders generate a new subcontract order.

• Click on the Allocate button to allocate the materials.

• Click on the Order to generate a Purchase order.

• Generate a delivery in Sales, Deliveries, Deliveries to ship the materials to the subcontractor.

• Use the Subcontract shortage selection on the left to select the subcontract materials.

• Generate the purchase receipt to receive in the subcontract finished product in Purchasing, Receipts, Receipts using the entry transaction defined earlier.

• Query the STOJOU table to check the stock movement for the receipt.
• STKRE auto journal for the subcontract parent product and STKRC is for components.

• Run the stock accounting interface in Stock, Periodic processing, Valuation, Interface.

• Review the stock journals create for the subcontract issue and receipt.

• Generate a purchase invoice against the receipt and post the invoice.

• At this point the status on the subcontract order will be closed and you can close and cost the subcontract order to complete the process.

• In Purchasing, Subcontract, Mass closing/completions select the site and the subcontract order number.

• Click Ok and click the Close button to close the subcontract order.