Goods issue

[Former Member]

Hi,

I have follwoing questions :-

a) Under what circumatsnaces(business scenarios) will one do a goods issue to a cost centre. I think the t code for the same is MB1A

b) when delivery(sales order related) is made and when PGI is done, the cost of goods sold is debited and stock is credited. Can it be possible so that we debit the cost centre instead of cost of goods sold ?

c) what is the T code for scrapping goods returned by customers. I think it shud be MB1A and movement type 551 ?

regds

[Former Member]

Normally, when you sell something its cost goes to cost of goods sold. The cost centre is irrelevant to this. You can get your revenue and profits from sales areas, or other analysis of the sales and billing documents.

You normally only make a prosting to cost centre if you issue goods from stock to a cost centre (in MB1A movement 201). Usually this is done for internal consumption of the goods, when you want the cost to go the cost centre of the department consuming the goods. In this case you don't make a sale as you can't bill yourself.

Rgds

Richard

[Former Member]

Don't understand why you would want to post to a cost centre when delivery to customer? Can you expalin more about scenario.

Rgds

Richard

[Former Member]

Hi Todd,

i just want to understand the difference between cost of goods sold and cost centre. i mean to say both indicates cost and both the cost goes to profit and loss account to calculate the profits !

[Former Member]

Hi

a) MB1A will be used with moveemnt type 201 mostly in the industry for office stationary items consumption ,uniform for employess if you maintain the inventory for the same.

Accounting entries as below

Stock credited

debited against cost centre

c) MB1A with movement type 551 for scrapping the goods.

Regards

Damu

[Former Member]

thanks Damodar,

when we do PGI to a cost centre, the movement type 201 will hit a gl account the the balance of the same gl account will be shown in profit and loss account as overhead account of the company.am i right ?

now my question is, why can't one while doing a normal sale to customer and by creating a delivery and while doing PGI , cannot hit a cost centre ?

[Former Member]

hi,

a) Under what circumatsnaces(business scenarios) will one do a goods issue to a cost centre. I think the t code for the same is MB1A

>>> In Plant maintenance orders ,production orders,service orders

b) when delivery(sales order related) is made and when PGI is done, the cost of goods sold is debited and stock is credited. Can it be possible so that we debit the cost centre instead of cost of goods sold ?

>>> sales order is confirmation from customer, that he is purchase our goods on basis of some terms and condition,QTY etc. in that case we create sales order with refrance to order.

c) what is the T code for scrapping goods returned by customers. I think it shud be MB1A and movement type 551 ?

Yes it is mb1a

Movements - 551 or 552 v or 552w

Kapil