Consumption-Based Offsetting 

Use

This procedure shows you how to deduct the deductible payables from the chargeable components account.

To see the activity in its context, see step 7 of the Subcontracting Process.

Prerequisites

You have paid the subcontractor’s invoice for labor charges: The system only allows you to offset deductible payables if you have first paid the labor invoice.

Procedure

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       1.      In the Subcontracting with Chargeable Components area menu, choose Processes ® Consumption-Based Offsetting.

       2.      In the Item Selection group box, enter data as required, including the following:

¡        In the Clearing Date field, enter the dates of the payments that you have made to the subcontractor for the labor charges.

¡        In the Consumption Period field, enter the dates of any goods receipt adjustments that you want the program to cover.

¡        In the Physical Inventory group box, specify whether you want to cover any credit memos created for shrinkage in the subcontractor’s component inventory (see step 3 of Inventory Shrinkage).

If so, enter the dates of the material documents created for the shrinkage.

       3.      In the Posting Parameters group box, make the settings for the accounting documents that the program will create.

In the Posting Key field, enter a posting key for debiting the Alternative Accounts Payable account (in the standard system, you can use posting key 27).

       4.      Choose .

The system shows a list of vendors and how much you have entered in terms of deductible payables.

For a list of (a) the subcontractor’s invoices for labor and (b) their deductible payables, choose  Display Document.

       5.      Choose  Posting.