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Nov 22, 2017 at 05:33 AM

ML - Revaluation of Consumption - How other companies use in terms of GL Account


Dear all experts,

I am in the middle of configuring the Revaluation of Consumption for the client, and this is the first time I am doing it. However the business has asked for advice on the GL account to be assigned to this COC postings.

Can you share with me what are the GL accounts that are commonly used during Revaluation of Consumption? Can you share with me an example with its double entries?

For example, during a purchase of a raw material, Purchase Price Variances of $100 is posted (Dr. PPV $100). During Reval. of Consumption in CKMLCP, $20 is distributed from <Cumulative Inventory> to <Cost Center> under the "Consumption" Category. (Dr. XXXX $20, Cr. PPV $20). So the question is what is this GL XXXX called? Is my understanding on the transaction/double entries correct?

Thank you in advance.