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Re: Regarding Accounting entries in subcontact procurement process when a GR is posted with movement type 101

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Credit = Subtraction

Debit = Additon

 

This is standard for financial accounting.

 

When you receive goods, your inventory/material account is always debited.

 

In subcontract process, when you do final GR, you will see credit for raw material - there will be debit of same amount in consumption account. Also, you see DEBIT of semi-finished account (addition to stock).

 

Financial entries can be confusing, you should understand with help of FI consultant.


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