IFRS 15 - Sales of Products based on POD - COGS deferral - Actual Costing Material Ledger

[former_member676399]

Dear gurus,

I have analyzed the SAP standard solution IFRS 15 compliant for Sales of Products with POD.

I think I need to activate Revenue Recognition and to configure accrual methods to be assigned to sales order items.

So, during the month, I expect sales revenue is posted to the Deferred Net Value account and cost of sales is posted to the Deferred Costs account (they are both B/S accounts).

At month-end the revenue recognition runs during period-end closing. The run checks the revenue recognition rules stored in the assigned accrual methods. Based on these rules, revenue and expenses are recognized as follows:

-Revenue is posted from the Deferred Net Value account to the Sales Revenues account

-Expenses are posted from the Deferred Costs account to the Expense account

Some revenue and cost of sales will still keep on deferred net value account and deferred cost account.

MY CONCERN is related to Material Ledger: how does it manage the deferred costs (goods in transit)?

I can have a situation like the following:

-100 PC ending inventory

-350 PC cogs

-some deferred costs (on B/S account coming from the RAR customizing)

How the ML shows these amounts?

-Does it show them?

-Does it show only amounts (currency) and not quantities?

-Does it show both amounts and quantities?

As per my understanding, I'd expect the ML to handle this deferred COS like if it was real stock, otherwise I can't properly reconcile the stock revalution together with the consuption revaluation.

PLEASE, does anybody know something about it? Does anybody have any documentation/link?
Thanks a lot