Accounting Transactions-Stock Receipt

The following accounting transactions are created for the quantity received back from the Subcontractor

For the *Service Charges *payable to the Subcontractor, the following liability is created

The following accounting transaction is created for the value of the items received

Let us summarize the accounting transactions as below, for clarity

As you can see, the value of the stock finally received back from the Subcontractor is the sum of issued stock value+service charges.