What is the cause of the shortage? If the subsidiary is not going to
return the remaining quantity due to their own scrap rate (acceptable
or not), you should be able receive the balance to the job and reject
the quantity they scrapped. Basically, the subcontact scrap is
treated the same as scrap from an internal work center. You started
with 100 piece in process and now you have 96. You just may not have
the defective parts physically on hand.
As with other vendors, receiving the entire quantity will close the
PO. "Returning" the bad parts and creating a Debit Memo will balance
out the money really owed to subsidiary.
Let me know if you would like to discuss this further.
Michael Randolph
Infinity Business Consulting
mrandolph@...
return the remaining quantity due to their own scrap rate (acceptable
or not), you should be able receive the balance to the job and reject
the quantity they scrapped. Basically, the subcontact scrap is
treated the same as scrap from an internal work center. You started
with 100 piece in process and now you have 96. You just may not have
the defective parts physically on hand.
As with other vendors, receiving the entire quantity will close the
PO. "Returning" the bad parts and creating a Debit Memo will balance
out the money really owed to subsidiary.
Let me know if you would like to discuss this further.
Michael Randolph
Infinity Business Consulting
mrandolph@...
--- In vantage@yahoogroups.com, "accting54" <pthe@...> wrote:
>
> We have a subsidiary in China where we have started to send selected
> jobs for finishing. The problem is how to get the Subcontract
> Operation to show as complete when the qty returned by the
subsidiary
> is less than the qty originally sent? Unlike an ordinary
operation,
> there is no Labor Entry on which to check the Operation Complete
box.
> Any suggestions?
>