General Ledger Postings for Microsoft Dynamics NAV Subcontracting

In an earlier blog, I explained the setup for Microsoft Dynamics NAV Subcontracting, and now I will explain the General Ledger Postings for a Sub Contract Production Order.

Quick Start Guide for Setting up Microsoft Dynamics NAV Subcontracting

I have set up a Work Center called SUBCONTRACT that points to the SUBCONT General Product Posting Group.

Figure 1: A screenshot showing a Work Center called SUBCONTRACT, with a General Posting Group called SUBCONT.

Then, in the General Posting Setup, I set the Purch. Account to 53160 (Sub Cont Purchases) and the Direct Cost Applied Account to 53165 (SC Purchases to WIP).

I purposefully used different accounts from the usual Purchases and Direct Cost Applied Accounts so I could track subcontract purchases separately in the General Ledger.

Figure 2: A screenshot showing a general posting setup with a Purchase Account of 53160 and a Direct Cost Applied Account of 53165.

I then went through the process to create a Released Production Order and a Subcontract Purchase Order.

When I Received the Subcontract Purchase Order, the system did not create any General Ledger Entries, but when I Invoiced the Purchase Receipt, the system created the following General Ledger Entries:

Figure 3: Screenshots showing General Ledger Entries reflecting the invoiced Purchase Receipt.

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Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.