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What is the effect of Material Ledger post closing on P&L?

Jul 13, 2017 at 02:37 PM

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I need to know how the P&L will be affected after Material Ledger is Run? I see the single and multilevel differences will be rolled to the next period after actualizing the periods result. In other terms if I want to expect the effect on P&L before the month is closed what is the clues for that?

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2 Answers

MALAY VAKIL Jul 18, 2017 at 09:54 AM
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Hi Ahmed,

Actually Material Ledger having option to revaluate inventory with actual cost. If you select that option then inventory will be revaluated and variance will transfer to inventory.

So accounting entry will be

Price Diff A/c Dr/Cr

To Inventory A/c Dr/Cr

Regards,

Malay

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Seref Can Kucukkarakurt Jul 20, 2017 at 06:09 PM
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Hi,

Material Ledger is used for revaluation of both COGS & Stock accounts.

If you settle these variances to COGS and also for other consumption types(sales, cost center GI, inventory adjustments etc.), you can report all these actualized data in cost components and P&L as well.

That means by closing material ledger at the end of month, you have same actual unit prices for cost of good sold & actual stock.

And if you are using a CO-PA based P&L report, you have an option to transfer actual values to CO-PA by using KE27 in order to adjust value fields which mapped with cost components under COGS in P&L lines.

Kind Regards,

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