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Former Member

Production costs and selling costs

Dear all,

In my client place, they have 10 depots, 4 plants. We are going to configure all the depots as well as 4 plants as business areas. My client does production in plants and sells the products through depots. so the production cost will occur in plants and the selling costs will occur in depts. my clients wants the balance sheet and profit and loss account of plant and depots should have both production costs and selling costs. But my doubt is since the production is taking place in plants, depot wont have production costs likewise selling is taking place in depots, the depots will not have production costs.

Please suggest me how to link both the plants and depots to have both proudction costs and selling costs.

Thanks & Regards,

AR

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3 Answers

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    Former Member
    Oct 01, 2008 at 03:11 PM

    Hi ar.fico,

    Your requirement can be fulfilled by profit center accounting. You define the 10 depots and 4 plants as profit centers. For internal selling between plants and depots, transfer price can be applied. Then both plant and depot will have profit.

    Regards

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    Former Member
    Oct 02, 2008 at 12:26 PM

    Hello

    This can be through Profic center accounting approach. Create 10 profit centre for all plant and depots, consider depot as plant as well. maintain material at plant and depot wherever applicable, maintain trf price for depot from manufacturing plant. costing can be transfer from production plant with config setting. so you will have your production cost which is nothing but the transfer price from production plant...on every movement by STO or PO you can manage cost, sales all. Assets and liabilityalso you can manitained

    hope this will guide u further

    dinabandhu

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    Former Member
    Oct 02, 2008 at 03:13 PM

    Hello AR,

    Along with PCA, company code also need to be considered, hence how many company codes are there? Is it only one or more! Provide as much details as possible so as to guide you properly.

    Ambadas

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