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Former Member
Apr 07, 2009 at 01:17 PM

Russian requirement to separate P/L accoutns by destination

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We are implementing AP in a Russian company, and we found out this requirement.

They have to separate P/L accounts by destination for direct production, indirect production, general production and business general expenses.

Main specific accounts used in a production unit are:

o Direct production costs: Account 20 u201CMain production unit u201Cshould be used to accumulate expenses that can be directly associated with the manufacture of one type of product (SKU). For ex., wages of workers involved in the production of one type of product, cost of materials used to produce one type of product, amortization deductions and expenditures on the repair of fixed assets and other assets used in production of one type of product, etc.

Example of correlated cost centres = Production Lines

o Indirect production costs: Account 23 u201CAuxiliary production unitu201D should be used to summarize information on expenditures of production units which are auxiliary to an organizationu2019s main production unit and cannot be directly associated with the manufacture of one type of product. For ex., the supply of various types of power (electricity, steam, gas, air, etc.), transport services, the repair of fixed assets, the erection of (temporary) non-listed structures, pickling, drying and preserving of agricultural produce, amortization deductions and expenditures on the repair of fixed assets and other assets used in production, etc.

Example of correlated cost centres = u201CCentraliu201D / Power plantsu2026

o General production costs: Account 25 u201CGeneral production expensesu201D should be used to summarise information on expenses associated with the support of the main and auxiliary production units of an organisation. For ex., cost of maintenance of machinery and equipment, amortization deductions and expenditures on the repair of fixed assets and other assets used in production, expenses associated with the insurance of those assets, expenses associated with heating, lighting and the maintenance of premises, rental payment for premises, machinery, equipment, etc. which are used in production, payment for the labour of employees engaged in supporting production, etc.

Example of correlated cost centres = Maintenance, Quality, Purchasingu2026

NB: In practice many companies do not use acc. 23 u201CAuxiliary production unitu201D, retaining only acc. 25 u201CGeneral production expensesu201D for all indirect production expenses (auxiliary production and general production expenses).

o Business general expanses: Account 26 u201CGeneral business expensesu201D should be used to summarize information on expenses for management needs not directly associated with the production process. For ex., administrative and management expenses, the maintenance of general business staff not connected with the production process, amortization deductions and expenses for the repair of fixed assets of a management and general business nature, rental payments for premises of a general business, expenses associated with the payments for information, auditing, consulting and other similar services, etc.

Is there a standard solution in SAP?