Valuation of Chargeable Components 

Use

One difference between chargeable and nonchargeable components is that when you provide chargeable components to a subcontractor, they become their property of the subcontractor.

Therefore, when a warehouseman posts a goods issue for chargeable components, the system makes an accounting posting to record the decrease in your own stock of raw materials and the increase in the stock provided to the vendor, for example:

Likewise, when the warehouseman posts a goods receipt for the subcontracting products manufactured by the subcontractor, the system automatically makes an accounting posting to reduce the stock provided to the vendor and increase your stock of subcontracting products, for example:

How does the system know which G/L accounts to record the goods movements on? It depends on which valuation class you have entered in the component’s material master record in the Valuation Class for Special Stock at Vendor field.

Activities

Customizing

Make the settings in Customizing for Materials Management (MM), by choosing Inventory Management and Physical Inventory  ® Subcontracting with Chargeable Components  ® Valuation of Chargeable Components.

In these IMG activities, you set up the valuation classes you want to use and then customize the system so that the Valuation Class for Special Stock at Vendor field appears in the vendor master.

Master Data

Enter the valuation class in the component’s material master record, as described in Creating Material Master Records for Chargeable Components.