Follow subcontracting and allocate additional costs¶
Track components held by a subcontractor, the received finished product and the costs included in stock valuation.
Before you start¶
Configure the subcontracting bill, allowed supplier, component supply routes and approved Brazilian remittance/return operations. Check product valuation and cost method before using landed costs.
Step by step¶
1. Order and send components¶
Prepare the purchase order for the subcontracted product and confirm its supplier and bill. Inspect generated component replenishments, quantities, source locations and destination subcontractor location. Validate only the components actually sent and retain the corresponding fiscal documents.
2. Receive and reconcile consumption¶
On receipt, record finished quantity and the component consumption required by the configured flow. Inspect subcontracting production records and remaining components at the supplier. Reconcile quantities sent, consumed, returned and still held before accepting the cycle as complete.
3. Allocate freight or other supported costs¶
Create a landed-cost record with company, journal and supporting expense lines. Select the target transfers or Manufacturing Orders when the cost belongs to production. Choose the allocation method, calculate and review every valuation adjustment before Validate. Compare with amounts already included in the purchase price or component valuation.
4. Check the financial effect¶
Open the linked valuation layers and accounting entry. Compare supplier bill, production cost and additional costs using the same quantities and currency. Where a purchase price difference arises, review its posting instead of adding the same amount again as a landed cost.
Expected result¶
The physical subcontracting cycle and the final valuation have supporting records and reconciled quantities.
If something goes wrong¶
For an empty allocation, verify eligible completed moves, target selection and cost method. For component shortages, inspect the subcontractor location. A validated cost adjustment requires an accounting correction process; changing an estimate does not reverse it.