Hello everyone, I have normal flow for subcontracting.
where the customer buys finished goods, my company will buy raw materials, then these raw materials will be sent to the subcontractor.
My question is, how can the journal entries be recorded.
What I want is:
when I buy raw materials, the raw material inventory will increase.
When I send raw materials to a subcontractor, the raw material inventory will decrease and work-in-process inventory will increase.
when I receive finished goods from a subcontractor, work-in-process inventory decreases and finished goods inventory increases.
My biggest problem is "When I send raw materials to a subcontractor, the raw materials inventory will decrease and work-in-process inventory increases"
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