Posting of electricity procured from outside and manufactured inhouse

[Former Member]

Hi Experts,

Kindly guide us as to how we need to go about the below scenario in SAP.

We are in cement industry. We procure electricity from outside and also we purchase gas and manufacture electricity for the purpose of use in our factory.

We do not have a problem with externally procured electricity.

With respect to electricity manufactured inhouse

The mapping as of now is done as below:

Accounting Entries:

When I use gas for conversion into electricity T code COR6N

Dr Natural Gas consumption 100 P&L

Cr Stock-fuel oil 100 B/S

Dr Stock -Semi Finished Goood (electricity) 120 B/S

Cr Cost of goods Manufactured 120 P&L

At the time of consumption of the electricity in Production T Code MIGO (Goods Isssue)

Dr Electricity Consumption 120 P&L

Cr Dr Stock -Semi Finished Goood (electricity) 120 B/S

Now our problem is that the expense for inhouse manufactured electricity is recorded twice as per our client.

Once when we are doing COR6N and the next time at the time of posting consumption to Production order using MIGO GI.

Kindly let us know how to overcome the above issue and see to it that the expense is booked only once.

Regards,

Hari

[Former Member · Accepted solution]

Hi Hari,

Are you convinced that the expense is booked twice? Because i'm not. When you credit cost of goods manufactured to P/L, the effect of earlier debit is nullified. In that case the expense is booked once only which is correct accounting.

Best Regards

Vimal

[former_member205946]

Dear Hari,

if you draw extract of P&L and B/S, you will find that there is one debit to material consumption. your other debit to electricity consumption is offset by credit to cost of goods manaufactured for 120. so there is no duplication of expense

[Former Member]

Hi,

Thank you for the quick response.

Vimal As per what you are saying that the expense is not booked twice, when I see the electricity consumption it is overstated and also the same is posted in gas consumption.

So when I see the both the GL accounts, the amount is appearing in both the GL accounts which I think should reflect only in one GL.

Regards,

Hari

[Former Member]

This message was moderated.

[former_member205946]

Dear Hari,

From your explanation , it seems that you have attached one GL to gas consumption and eletricity consumption. if it is this , please open new GL for Electricity consumtion and attach it in OBYC ,general modification VBR and valuation class 7900 (semi Finish goods)

BR

sajida