Clarification regarding 'P' and 'Q' indicator usage

[former_member210673]

Q-1: In which business scenario do we really use 'P' and 'Q' indicators?. Why is it the the u2018Consumptionu2019 account is picked by default while creating PR and is posted to during GR when indicator 'P' is selected Vs. the 'Inventory G/L' is picked during PR and u2018Consumptionu2019 account is picked at GI when indicator 'Q' is selected (based on configuration in OME9).

While posting a PR, the 'Consumption G/L' account is directly picked when indicator 'P' is selected, whereas, when indicator 'Q' is selected the 'Inventory G/L' is picked and MMBE shows the matl as a separate line item - 'Project stock'. This is a bit confusing scenario, cuz, I see that in the end the 'Consumption account' gets affected whichever indicator is selected.

Accounting entries observed with 'P and Q' indicators at time of GR/MIGO:

Indicator 'P':

Debit - Consumption account

Credit - GR/IR Clearing

Indicator 'Q':

Debit - Inventory

Credit - GR/IR Clearing

So, when GI is done for with 'Q' indicator (Movt type: 221- Q), 'GI for project from project stock', the following accounting entries were observed:

Debit - Consumption account

Credit - Inventory

Of course, I see the CJI3 report gets updated with Debit and credit entries (Actual cost) & Statistical cost reconciliation after GI with 221 u2013 Q is posted, which is another confusing issue for me to understand, cuz I assumed the CJI3 shows the actuals.

Q-2: Please clarify on the u2018Debitu2019 and u2018creditu2019 entry postings, cuz I assumed the CJI3 shows the actuals once GR is done for PO created either with u2018Pu2019 or u2018Qu2019 indicators.

[former_member220491]

Hi,

As per my understanding. while procuring materials with "P" as account assignment, it means consumption against project, means it works like a non-stock item, so when procuring the materials with this account assignment automatically Consumption account hits as GI is done automatically while doing GR . In migo.

Where as using "Q" as account assignment, here it works like this, this is used for tracking the stock seperatels as special stock/project stock, when u see MMBE project stock can be identified seperately. Here also when we do GR first it hits the inventory account as the stock is valuated at project level means inventory is valuated as "M". So when we do GI it works like account assignment "P", means consumption is against project.

Hope i am clear.

Thanks

regards

kishore

[former_member210673]

Hi Kishore,

Thanks for the clarification.

Related to Q-2 as posted above: I am assuming the answer/process flow you provided, is the reason why we see the statistical posting when GR is done, u2018Debitu2019 and u2018creditu2019 reconciliation postings in CJI3 when GI is done for when indicator 'Q' is selected.

Whereas, for GR with indicator 'P', the system posts it as actual cost against the project (as if GI is done automatically while doing GR). Please confirm, so that I can close this post and will assign you some points.

Thanks once again.

[Former Member]

Whereas, for GR with indicator 'P', the system posts it as actual cost against the project (as if GI is done automatically while doing GR).

Your understanding is correct. In case of 'P' GR leads to direct consumption and subsequent actual posting.