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Former Member
Jan 21, 2015 at 06:07 AM

production order settlement stock adjustment account

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Hi CO guru,

Knowing that there are various processes during month end in relation to PO like overhead calculation, wip, variance and finally settlement.

For wip and variance, the double entry is both wip BS account and stock adjustment PL account or variance PL account and stock adjustment PL account when settle.

1 May I know the stock adjustment account is to net off during wip calculation and variance calculation?

Example during GI, dr consumption (cost obj of production order) and cr raw mats

during wip or variance, to credit the offsetting account is stock adjustment account

in the end, both consumption and stock adjustment net off.

Correct?

2 So may I know what is the purpose of this stock adjustment account during wip or variance? just like accrual or clearing account like GRIR?

Thanks

Regards