General Ledger Settings

Overview

• Inventory consumed at a subcontractor is accounted for in the same way as production within a manufacturer.
• When inventory is issued and received, financial postings occur within an External WIP account, thus providing visibility of the production value at the subcontractor.

Account Settings

• As per SAP Business One rules, accounts can be set at Warehouse, Item Group, and Item level or by using Advanced G/L Account Determination.

• At the appropriate level (implementation decision) for the WIP Inventory and Inventory Variance Account, set the account codes for External WIP and WIP Variance.

• Expense Account has to be set up for Service Items.