Business Process Scenario:
We have two manufacturing plants and 7 Branches. All the branches are defined as plants and in turn linked with the profit centre.
AA Manufacturing Plant 1
BB Manufacturing Plant 2
CC Branch defined as Plant
Sales organization is same for all the plants.
Material codes are available only in manufacturing plants. Not extended to the Branches.
Branch receives the order from customer for manufacturing and supply of material from manufacturing plant 1. We don’t want to do any stock transport process and Depot sales process, since in this both cases material required to be in plant CC.
The order received by branch will be manufactured in plant AA and delivered and invoiced to the customer directly by the plant but to have a proper profit centre account (to have P&L and Balance Sheet for all the plants) need to book the cost and revenue in manufacturing plant (AA) as well as Branch (CC). There will be only one excise invoice processed at plant AA but system should create internal entries for branch CC.
Following are the questions
Material “A” has a sales price of INR 1000 in sales order, Fixed Transfer Price of INR 800 and manufacturing cost is INR 600
The accounting entries should be passed upon processing billing document.
Entries In Plant AA
Cr Inventory 600
DrCOGS600
CrRevenue800(FTP)
Dr Customer A/C (Branch CC)800
Entries in Branch CC
Cr Vendor A/C (Plant AA)800
Dr COGS800(FTP)
Cr Revenue1000
Dr Customer A/C 1000
Thanks in Advance
Krishna