Offsetting Entry for Inventory

[Former Member]

What is offsetting entry for inventory postings?? i.e. Transaction Event Key- GBB.

When does it comes in picture in Material Management?.

Also in PRD Which amounts are posted to?

Significance of Transaction event BSV ie change in stock?Just want to know when they are triggered in practical application.

Regards,

Deepika

[Former Member · Accepted solution]

Hi Deepika

Offseting entries for inventoriy posting comes into the Picture when you do good movement like Good issue, Good receipt

Suppose you make the good receipt for Particulate PO at The Time of MIGO Stock account will get debit and GR/IR Acc. will get Credit

here is the some more Clarification

Stock Accounts

In the R/3 System, you do not set up a separate account for each material. Instead, different materials with similar features are grouped together in a common account (for example, raw materials: acids). The account relevant for a material is defined in the material master record when a material is created. The system only posts to the stock account when a price difference occurs for an invoice.

GR/IR Clearing Accounts

The GR/IR clearing account is an "intermediate" account between the stock account and the vendor account. At goods receipt, the net invoice amount expected is posted to the stock account. The offsetting entry is posted to the GR/IR clearing account. This posting is then cleared by an offsetting entry on the vendor account at invoice receipt.

As far as PRD is concern if there is any difference between your PO price and Material price The difference will go to PRD in case of Standard Price maintained in Material master

Thanks

Thanks

[Former Member]

Please know sometime we need assign different GL account by Meterial Group, Valuation Class, Movement Type or simply by account grouping.

Hope it helpful.

Bruce

[Former Member]

I think you now investigate Configure Automatic Postings of the integration between FI and MM.

Hope the folloing helps:

What are the steps in automatic account assignment config.

Material type is assigned to A/c Cat Ref.; A/c Cat. Ref is

assigned to Val. Class; Val. class assigned to G/L A/c.

Configuration :

OMWM : Activate Val. grouping Code

OMSK : Create A/c cat. ref and Val. Class; then A/c cat ref assigned to material type.

OMWD : Val. area (plant) assigned to Val. grp. code (0001)

OBYC : Assign Val. modifier (0001), New Val. Class and G/L A/c

Now create new material and assign new val. class in accounting 1 data screen. Then create PO, GR.

=>Account Determination Wizard

=>Account Assignment without Wizard.

OMWM Define Valuation Control

OMWD Group together Valuation Areas

OMSK Define Valuation Classes

=>Account Category Reference

=>Valuation Class

=>Material Type / Account Category Reference.

OMWN Define Account grouping for movement types

OMWB Configure Automatic Postings

OBYC Account Assignment

Thanks,

Bruce

REWARD IF HELPFUL

[Former Member]

GBB is the offsetting entry. Typically used in GI to cost center, etc.

PRD is the price difference account. If material valuated at standard price is purchased, the difference between the standard price and the PO price is posted to PRD.

BSV is used in Subcontracting. This is the offsetting entry for BSX (receipt of the finished good).

Lakshman