cancel
Showing results for 
Search instead for 
Did you mean: 

Project settlement

Former Member
0 Kudos


Hi Forum,

Hi ,

We are implementing ETO scenario with Non valuated project stock.
The Sales order items are account assigned to WBS element. Production orders assigned to Network / WBS to produce the FG. The delivery is made through SD followed by Billing.

Since the Production order cost is already included in Project, the result Analysis is performed on Project. This icludes the Production order cost & along with Project costs like internal activity cost in Project network.

KKA2 - Result Analysis calculates WIP = actual cost till the time there is no revenue.

On Settling the RA data via CJ88, the P&L inventory WIP account (511010) is credited and a Balance wip account is debited (114200).

Further when Revenue is posted on the Project, on executing Result Analysis, The WIP is reversed & the COS is calculated based on Actual costs.

On Settling the RA data, two FI entries are posted

1) P&L WIP account (511010) is debited and a Balance Sheet wip account is credited (114200) : This is because the WIP is reversed.

2)  The Balance Sheet WIP account (114200) is credited and a P&L account named "Cost of goods sold" (341100) is debited as per COS (Cost of sales) calculated in RA.

My concern is that the Balance Sheet WIP account (114200) is getting debitted once during WIP posting credited twice - 1) during WIP reversal & 2) as a offset credit during COS posting ( P&L account named "Cost of goods sold" (341100) is debited as per COS (Cost of sales)COGS].


Is there a way to avoid Balance sheet account being credited twice?

We are trying to set up a process similar to COGS accounting in Sales orders. Is this approach right?

 
Many Thanks,

Sejo

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi Sejo,

If I understand your design correctly account 114200 represents the value of your finished goods in inventory.
If your monthly nett posting to this account is credit posting, it means that in this particular month you sold more than you produced.

With regards to your question: "Is there a way to avoid Balance sheet account being credited twice?"

I think there is. Just stop executing WIP calculation as a separate step.

Just execute RA only once (after revenue postings).

Regards,

Szymon

Former Member
0 Kudos

Hi Szymon,

Thanks for replying.

Balance sheet account 114200 is the WIP inventory not the FG inventory.

WIP is getting reversed after the revenue is posted and cost of sales in calculated. Hence no issue with WIP.

I am trying to understand what you are indicating. Incase COS is settled / debited against P&L account 341100 (Cost of goods sold) and credited against the inventory FG balance account, will there be credit balance in FG inventory account. There was no debit on inventory FG balance sheet account previously to balance it. Will this credit balance not be an issue?

Thanks

Sejo

Answers (1)

Answers (1)

varshal_kachole3
Active Contributor
0 Kudos

Hi,

Do you have the "Transfer to Financial accouning" check ON in OKG2?

Anyways the Settlement would transfer the Values Calculated by RA into Financial Accounting.

thank you and regards,

Varshal Kachole

Former Member
0 Kudos

Hi Varshal

Yes, Transfer to FI is already checked and the postings are happening.

Whats missing is the offset credit account to the Cogs P&l account.

Not sure How the cost of sales-COS should be posted.

Thanks,

Sejo