Hi BiTa
Raw materials provided = Finished product + Byproduct (or scrap) --------> Subcontracting process.
But subcontracting purchasing info record (for main product) will have the amount to be paid for assembling the main product. This price is not related to raw material or byproduct.
I don’t think we can link this amount to byproduct or scrap generated during the process.
Say vendor service charge is Rs.1000 for assembling the main product. You are receiving the main product (101) and also you are receiving byproduct/scrap (545). Now if you divide Rs.1000 which is service charge, how this can be justified ?, because vendor is returning byproduct/scrap to you back…!! You should pay complete Rs.1000 to vendor for his work on main product.
After GR, how you are valuating the byproduct/scrap is left to your business.
Regards,
Madhava