Effect of PGI and postings

[Former Member]

Hello Gurus,

When PGI, value change is posted to stock accounts in inventory accounting.

Does this mean:

1. Stock account receives 1 posting and Accounting doc GL account receives another posting of the reverse sign?

And this is always the case that there will be 2 postings one to each of the accounts: Stock and Accounting doc gl account.

2. The same accounts are updated or posted with value changes when a Cancellation is set.

3. Only in PGI and cancelation of PGI are these 2 accounts posted.

regards

M Russo

[Former Member · Accepted solution]

Hi

At the time of PGI a material document gets generated automatically

COGS A/c Dr

To Finished goods Inventory A/c cr

1)The physical stocks are updated. The inventory in the shipping plant/warehouse

is reduced by the quantity that was shipped.

2)The requirements in the stock requirement list are updated. The delivery

quantity is no longer u201Copen,u201D and the requirement is now marked as

completed.

3)Accounting documents are posted in the background, reducing the value of

inventory and increasing the cost of goods sold.

regards

Prashanth

[Former Member]

Dear Russo

Movement Type : 601 plays a major role in the accounts to be hit.

In other words, Movement type assigned to the respective Schedule Line category controls all this.

In OBYC, the G/L accounts to be hit can be configured.

Rgds

Sumanth.G

Consultant/Systems Analyst - SAP SD/MM

[Former Member]

hi,

PGI - COST OF GOODS SOLD A/C DR

TO INVENTORY OF FINISHED GOODS A/C

-stock quantity is updated.

-Values are updated in inventory accounting.

-Status in all sales document is updated.

-cost of goods sold is updated.

-Requirments is updated.

-Billing index is updated.

hope this clears your issue.

balajia