Posting of electricity procured from outside and manufactured inhouse
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:
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.
Vimal Vijayan replied
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.