Accounting in Valuated Project Stock

[Former Member]

Hello - I am just getting my feet wet in "project stock" type scenarios.  My client has a requirement to track the costs as "project stock".  They transfer the material bought on one project to another and in such cases they would like to see the qty as well as cost move.  This requirement fits "Valuated Project Stock".  However, I am a little confused whether to use a B/S or a P/L account for BSX.  If I use a B/S then I do not see my actual costs in CJI3.  Why should I be using B/S and not a P/L in BSX.  What would happen if I use a P/L instead of B/S?

Thanks,

Jyothi

[Former Member · Accepted solution]

Hello,

Just a small contribution to what has already been said...

You could display values in CJI3 even if you choose for valuated project stock and B/S account in BSX. For that you would need to create the respective B/S account as an statistical cost element (i.e. cost element category 90). Values posted to a project through this cost element would then be displayed in CJI3 under statistical actuals (i.e. value type 11).

Regards

[Former Member · Accepted solution]

Marcos - I have never used cost element category 90 before but I like to idea of a statistical posting.in CJI3.  I read some articles on cost element category 90 and they say that it needs to be used in conjunction with Asset Accounting.  I am not planning to use Assets at this time. Can I just create a cost element in category 90 and link to my BSX account?  Can you please provide a little more guidance on how to proceed.

Thanks,

Jyothi

[Former Member · Accepted solution]

Hi,

Cost elements of category 90 can be created for Asset reconciliation B/S accounts or for Material stock B/S accounts for valuated stock for sales orders or projects. Therefore you could indeed just create a cost element in category 90 and link it to your BSX account. After creating the cost element postings made on the account should statistically update CO as well.

In ECC there is no secret for creating this kind of cost element. Just go to transaction KA01 and create a new primary cost element for your B/S material stock account. The system should automatically realize that it is a B/S account and assign automatically the category 90 to it.

In S4HANA transaction KA01 leads you to the "Edit G/L account centrally" transaction (similar to FS00 in ECC). Similarly to ECC if the B/S account in an Asset reconciliation account or a Material stock account you could ask the system to update the account assignment statistically by selecting "Apply Acct Assignments Statistically in Fixed Asset Acct / Material Acct". This has the same effect of "creating" a primary cost element of category 90.

Regards

[Former Member · Accepted solution]

Marcos -  The screen shot's are very helpful.  I have been using the material stock account but I do not see the option that you highlighted in picture above. I think I might be missing some status settings on account group.  I will give this a try and let you know if I had any sucess.

Thanks,

Jyothi

[Former Member · Accepted solution]

Hi Jyothi,

A prerequisite for the highlighted screen area to appear is that your material account is already assigned to transaction key BSX. Otherwise the system does not know that it is a material stock account and treat it just as a normal B/S account.

Also the basic organization structure customizing has to be completed (e.g. assignment of company code to controlling area).

Best regards

[kenmelching]

The standard (Best Practice) value flow with Valuated Project Stock is as follows:

1.  At Goods Receipt the material value is posted to a Balance Sheet Account.  The material is held in inventory because it has not been consumed yet.  This treatment is just like material held in Plant Stock.  Prior to Goods Issue the material value is held in Inventory (a Balance Sheet account).

2.  If the material is transferred to another WBS Stock Segment the value will move with the Transfer Posting (stays in the same B/S account)

3.  At Goods Issue the Balance Sheet is credited and a debit is posted to a P&L account.  The material is expensed now that it has been consumed.

If you want to see a posting to the WBS at the time of Goods Receipt you can create a Type 90 Cost Element for the Balance Sheet Account.  This posting will show in CJI3 as a statistical posting.

[sammar81]

Hi Ken,

The process is perfect in ECC world.. I think the problem she is facing is in S4HANA.. As  in S4HANA space we don't have cost elements but GLs created as CE.. So we need to see how these new GLs cater for CE type 90 in HANA.

Regards

Sammar

[sanjeevc]

Hi Jyothi,

Pure FI Business question let say it's depend on financial account of organisation they will decide how they want to use this so according to that just we need to configure GL B/S or P/L.

so only issue is like cji3 report is unable to show out this entry then we can create customised report for this work.

But best practice is to use P/L GLs.

Regards,

Sanjeev

[former_member198686]

Hi jyothi,

Im not sure how much it was resolve your issues below links for your ref check onece for your under standing sake.

Also check below reports fyr.

S_ALR_87100185: WBS wise actual cost per month report.

s_alr_87013531 : wbs cost revenue expenditure reiept  report year wis e

s_alr_87013543 : order wise report

MBBS: valuated project stock report.

Regards,

KRK.

[Former Member]

Hi Jyothi,

Like Sammar said, it is purely Finance business group decision on how they want accounting of procured material across projects.

As per your requirement, business wants to see movement of qty as well cost. So P/L GL in BSX will be able to give the correct project specific reporting. The qty and cost is displayed in all std. reports of PS.

If you procure materials as 'Valuated stock' and  specify B/S account in BSX then the FAGLL03 report showing cost at B/S level and CJI3 / S_ALR_870* not at the specific project level.

If you procure material as 'Non-valuated stock' and use B/S GL in BXS, then in that case also the project reports (CJI3) will show the cost and qty.

Hope this helps.

Best regards

Aditya

[sammar81]

hi Jyothi,

if your business users wants to see the cost movements on projects for material transfers then it makes sense to have P/L GL in BSX maintained with proper valuation class for the stock materials in question..

Regards

Sammar

[Former Member]

Sammar/Aditya -  You are right to say that it is the discretion of the business to use PL or BS account.  I have been doing a prototype in S4HANA and comparing the results to ECC.  In ECC, I am able to make the BSX account a PL account and see all cost flows in MBBS and see the actual costs in CJI3.  When testing in S4HANA I keep getting this below error  while posting a goods receipt with 101 Q...The error essentially means that transaction key BSX is not allowed with cost element category "01".

As far I know, I haven't done any special configuration changes to be able to post to a PL account in ECC.  I am not yet sure what needs to be done in HANA to enable a goods receipt to a PL account.

Thanks,

Jyothi

[Former Member]

Hi Jyothi,

Please check following SCN thread, which might help.

OBYC BSX GL account P&L | SCN

Best regards,

Aditya Kotak

[sammar81]

Hi Jyothi,

the simple Finance has some changes in S4HANA.. not sure how the GL/Cost elements are getting treated in HANA for such scenarios.. Need to post in FI area to get a better perspective..

Sorry cannot help out here..

Regards

Sammar

[former_member282774]

Just so you know There are no CE in S4HANA that means KA01,KA02 and KA03 are NOT available in S4HANA..Even if we try to execute KA01,systems will redirect you to FS00.

Most importantly, secondary cost elements are added to Chart Of accounts so CO internal cost will be available at GL level.