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Former Member

Material ledger accounting entries

Dear All,

i need material ledger related all accounting entries. I am confused with some entries.please do the needful urgent.

regards

K S Rangarajan

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 20, 2007 at 12:28 PM

    Hi

    It is like the Price difference accounting entries. if the value of the material changed because of ML run it'll create the entries with the difference the cost - here you can settle this to material and retain back / you can reverse the entry which you settle (just like foreign currency valuation reverse)

    VVR

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 20, 2007 at 01:55 PM

    Hi

    Material ledger/Actual costing updates the MM master at actual costs at period end.

    Let us give an accounting entry by way of an example

    Beginning inventory= 10 KG at $10= $100

    Goods receipt=15 kg at $11 = $165

    Total value 25 KG at $265 (unit price =10.60)

    However Inventory is valued at $250 because of Price control indicator S, thus there is a price difference (Dr) of $15

    On revaluation at period end, Dr Inventory $15

    Cr Price difference $15

    This is a simple case. Add to that exchange fluctuations, Invoice value resulting in price difference, etc. Assume a Goods issue of 12KG in the same period, it will be initially valued at $10, however on material price determination, this price difference of $0.60 per unit is assigned to consumption as well.

    Hope you understand better

    S Jayaram

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