on 08-20-2007 12:04 PM
Hi SRM Gurus,
Could anyone explain me Need for Diff. Account assignments With examples.
B'coz. When there is a cost center why we required internal order,Project system as A diff. Account assignments?
What Is a basic Diff. bet. these account assignment?
Ideal situation to use this Account assignments?
I hope my Question is clear
Vishal...
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Hi Vishal
The account assignement comes into picture when you order the material as Indirect. In case of direct it gets valuated under raw material, semi finished, finished etc (Valuation class).
In Account assignment you assign a specific G/L account to a cost center. In reality you can have different cost centers like Production, Maintenance, Quality etc and different G/L accounts like Raw material consumption , machine tools, computer software, buildings, machineries etc.
Suppose if a machine has been procured for production purposes it gets accounted in the machineries G/L account and the cost is accrued by production. Same case if a measuring instrument is procured by Quality department it gets accounted in machineries G/L account and the cost is accrued by Quality department.
It helps in analysing the spend of each department as per the allocate d budget and also helps in allocating budgets to respective departments for future purposes.
Hope this clears your query.
In case of any clarification feel free to ask.
Also reward points for suitable answers.
Rgds,
Teja
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Hi Vishal,
Good to iknow that you have understood something.
In case of direct material consumption for production or u can say BOM items were issued against production orders (Internal orders) and get valuated accordingly.
In case of consumption of material by different departments for adhoc purposes like tape, screw drivers, hammers, nuts, bolts etc (can be any thing), the material consumption is valuated against cost centers. The material gets issued against a reservation for a cost center like maintenance, production, quality, HR etc.
Hope this will make you more clear.
Rgds,
Teja
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