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Former Member
Jun 02, 2008 at 07:35 AM

Which Cost Objects to hit in Controlling

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Dear All,

Please guide which cost centres/ cost Objects should be chosen in case of the following entries in FI

a) Revaluation of Inventroy based on Standard Costs ( Entry passed by system at beginning of the month)

Inventory Ac Dr

Finished Goods Valuation Adjustement Ac Cr

Semi Finished Goods Valuation Adjustment Ac Cr

Presently entry passed due to above price change we are accounting under Procurement cost centre and treating the same as period costs. Is this treatment proper?

b) Scrap generated during production is not possible to allocate the same to any specific production Order , hence the scrap loss entry as mentioned below is accounted under production cost centre

Scrap Loss Ac Dr

Inventory Semi Finished Ac Cr

inventory Raw Material Ac Cr

Whether scrap loss should be accounted under production cost centre or there any better way of accounting scrap loss in controlling ?

Please provide answers so that necessary configuration chages can be made.

Regards

Milind Nair