account assignment category K

[Former Member]

Hi,

May I know what kind of purchase that meant for account assignment category K(cost center)?

It is purchased by cost center?

what is the difference for this purchase with the normal purchase?

thanks

[former_member529134]

At the time of Goods receipt:

Cost centre a/c: Dr

GR/IR clearing: Cr

At invoice recipt

GR/IR: Dr

Vendor a/c: Cr

At the time of payment

Cost centre a/c: Cr

Vendor a/c: Dr

Hope this helps

Regards

Gregory Mathews

[Former Member]

hi,

1) at the time of GR,

debit cost center gl account. the gl account is an expense account right?

2) at the time of payment, how can credit the cost center gl account?

thanks

[Former Member]

Hi,

The GR and IR comes under MM.

So If u view the Complete account in the MM the balance accounts are

Credit vendor

Debit Cost center.

The Payment comes under financial accounting here the balance sheet caliculation happens so the account posting are

Debit Vendor ac

Credit Cost center ac

I think u r confusing with the Dr and Cr. these trans are dependent in whose view u r looking at. Dr and Cr are not static these r dynamic which changes with the view point.

If u view vendor balance accounts then the account recievables in his view are complete in opposite to tht of the business.

Hope this helps

Madhu

[Former Member]

hi,

my doubt is why not

debit vendor credit bank clearing during payment?

i do not understand why credit cost center

thanks

[former_member529134]

Hello

When we r using the account assignment category 'K', it means that the cost of that purchase is credited to that particular cost centre G/L account we give in the PO.

An account assignment category 'K' is given whenwe are procuring a material without material master record maintained or when it is directly consumed (not stored).

In normal purchase the cost of that goods is credited from the material account at the time of vendor payment, but when we r using an account assignment category 'K' it will be credited from that particular G/L account.

There will be cost centres created by the FI people and in our srtatement it says that for which cost centre the purchase has taken for that particular cost element.

Hope it helps

Regards

[Former Member]

hi,

can i know the fi posting double entry during migo and miro for acc assignment cat K?

thanks