Event based Production accounting

[former_member656987]

Hi

One quick question around event based posting, understand that seperate Journal entry will be created for WIP (Event based ) or for Variance based on (business events, such as final goods receipt or complete technically). Just trying to understand how the GL posting will appear if multiple accounting entries gets posted based on business events.

For example, I understand that once say good issue or activity confirmation is done, system will calculate and post event based WIP along with Journal entry and then say if GR is also done for full qty, then WIP needs to be reversed for the same order in the same month and variance/settlement entry will be posted.

This will lead to multiple postings and multiple reversals for an order in a particular month at GL level right, especially when we look at production related GLs like WIP, COGM (Change in inventory) etc.

Pls help to clarify on this. Not sure, whether am I missing anything here.

regards

Karthikeyan G

[OwenLiu · Accepted solution]

Hi Karthikeyan G,

Yes, what you described is true.
I don't see problems that posting multiple G/L documents relevant with WIP or settlement.
Could you please clarify?

Best Regards,
Owen

[Javier_del-Peso]

Hi Subramanian

Yes your understanding is correct. With Event-Based Production cost posting, the journal entries are different than with previous traditional ECC production process. There are specific journal entries for each production event and no settlement process is needed to calculate WIP.

For more details and better understanding, please check this two links :

New in Production Accounting – Event-Based Production Cost Posting | SAP Blogs

Event-Based Production Cost Posting - SAP Help Portal

Regards,

Javier del Peso