Inter plant stock transfer
Scenario as follows
One Company Code
There is transfer of one material from Plant A to plant B. Material Transfer at cost price without adding any profit margin.
In normal Inter unit stock transfer, Inventory Dr in receiving Plant
To Inventory Cr in Sending Plant
Here capturing excise is plant A is having problems.
So adopted normal cycle
1) PGI ( In Plant A u2013 Sending Plant)
COGS Dr 100
To SFG Inventory 100
2) Billing ( In Plant A u2013 Sending Plant)
Customer (i.e.Plant 2) Dr 100
To Sales 100
(Excise effect not considered as it will happen as usual)
3) MIGO (Plant B u2013 Receiving Plant)
SFG Inventory Dr 100
GR IR Cr 100
GRIR Dr 100
To Vendor (Sending Plant) 100
All this is normal. But the sales or Inter Company Stock transfer which is a P&L nature Account remains as it is without any corresponding entry to offset it.
So what to do to deal with this? Or the account remains as a part of Revenue? This I consider is wrong. I suppose I am missing some link somewhere.
Thanks & regards,