accounting entries for product costing period end closing

[Former Member]

HI sapiens

Can anybody help me regarding the entries passed when

1. WIP caliculation

2. Settlement

3.Variane caliculation

I request you to give me for each entry wether it is a P&L gl account /Balance sheet gl account

If it is p&L account cost element is required or not

I would be thankful to you

Cheers

Vani

[Former Member]

Hi Vani

Following are the entries passed

WIP Calculation - This depends on order status. WIP is calculated only for orders with REL, PREL status

Entry

Dr WIP - Balance Sheet Item

Cr Change in stock WIP - Cost Element

During settlement

If the order status is DLV or TECO

WIP entry as outlined above gets reversed and varainces are calculated. Variances are calculated during variance calculation step

It is only during settlement that FI entries are passed for

1) WIP

2) Reversal of WIP

3) Posting for Variances

You need to create 2 variance accounts as follows assuming u hv SFG and FG Matl

1) Variances in Production - Cost Element

2) Variances FG Prodution - Not a cost element

3) Variances SFG production - Not a cost element

The postings are done thru OBYC settings for variances and for WIP the accounts the defined in WIP Configuration - Define posting rules for settling WIP

Hope the above clarifies - pls assign points as a way to say thanks

[Former Member]

Hi Vani,

Any costing related element should be created as cost elements. In your case , you need to create this elements as secondary cost elements.

Hope this solves your problem. Assign points as way of thanks.

Thanks

Dasa