Accounting entries in PP module

[Former Member]

Dear all,

i am seeing the production order the qty and value is showing +ve value. When i am running the cost center report that time its showing -ve value(same qty and value but -ve). Why its showing like that and what are the accounting entries will happen while doing PP modules.

Eg. production order qty 10 and value 100.(this is in production order)

While seeing cost center report qty -10 and value -100.(this is in cost center report).

by

viswa

[Former Member]

Dear,

When production order is confirmed labours cost are debited to the production order and credited to the cost center.

Example

Cost Center 5000 is a Production cost center and production order is created to produce 2000 Qty of finished product. Now to produce these 2000 Qty, total 50 Labour hours are required. So, activity type Labour is created with Hours as an activity unit. Then this activity Labout is priced in transaction KP26. Suppose Rs 10 is planned for per labour hour. So, total labour cost will be Rs 5,00.

When Production Order is confirmed following entry is passed into controlling.

Labour assessment cost element Dr Rs 500 Prodcution Order.

Labour assessment cost element Cr Rs 500 Prodcution Cost Center.

Accounting entries are not passed at this time. And aboe is the reason for output shown in Cost Center report.

Regards,

Chintan Joshi.