Difference between PO & Subcontracting.

Question:
Hi Experts
Can anyone tell me the difference between the Purchase Order and Sub-Contracting from the perspective of account determintation.
Thanks in advance
Rajesh
Answer:
Hi,
The account assignment determination was made basically in accordance with the following factors -
1) Chart of Account;
2) Valuation modification, also referred to as valuation grouping code (which is defined at the organization level - plant location in general);
3) Account Grouping, also referred to as general modification (which is subject to the movement type);
4) Valuation Class.
As far as the difference between PO and Sub-contract PO, what I can say that the only main difference that you should look at is the posting of GR for finished product which also triggers the posting of stock movement for all BOM components.
Cheers,
HT
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