on 11-20-2007 11:47 AM
Dear All,
i need material ledger related all accounting entries. I am confused with some entries.please do the needful urgent.
regards
K S Rangarajan
Hi
Material ledger/Actual costing updates the MM master at actual costs at period end.
Let us give an accounting entry by way of an example
Beginning inventory= 10 KG at $10= $100
Goods receipt=15 kg at $11 = $165
Total value 25 KG at $265 (unit price =10.60)
However Inventory is valued at $250 because of Price control indicator S, thus there is a price difference (Dr) of $15
On revaluation at period end, Dr Inventory $15
Cr Price difference $15
This is a simple case. Add to that exchange fluctuations, Invoice value resulting in price difference, etc. Assume a Goods issue of 12KG in the same period, it will be initially valued at $10, however on material price determination, this price difference of $0.60 per unit is assigned to consumption as well.
Hope you understand better
S Jayaram
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Hi
It is like the Price difference accounting entries. if the value of the material changed because of ML run it'll create the entries with the difference the cost - here you can settle this to material and retain back / you can reverse the entry which you settle (just like foreign currency valuation reverse)
VVR
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