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Former Member

Service order to sales order settlement

Hi Team,

While settling service order to sales order via KO88, our Product Costs settled to one secondary cost element say-962100 & Labor Costs settled to secondary cost elemnt-say 968000. We need to pass journal entry for transfer labour cost to GL account manually.

Do we have any option to post enrty to GL account"salaries & wages" at the time of settlement itself.

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2 Answers

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    Former Member
    Jun 18, 2010 at 11:05 AM

    Hi,

    I would like to describe the question in detail:-

    We have a client requirement in one of business scenario of u201CService order to sales order settlementu201D:-

    Business Scenario:

    Customer sends goods for repair to us. We create a repair sales order and on saving the sales order u2013 it creates a service order.

    Goods are issued and labor costs are booked on the service order.

    Item is repaired and we bill the customer.

    At the month end,

    - we settle the material cost and labor cost to repair sales order (hence matching cost with revenue from management books view)

    - we settle repair sales order to COPA.

    Question/Issue:

    When the labor cost is booked on the service order, the cost center gets the credit and costs are debited to the service order. However, from accounting perspective, the costs are still sitting on the SALARIES AND WAGES GL account.

    What we need is to make an accounting entry for this labor cost to COGS u2013 OTHERS for all such labor cost booked.

    How can we achieve this?

    Thanks

    Pooja

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    Former Member
    Jun 22, 2010 at 11:20 AM

    Hi,

    Did any one face the similar issue? Can you please reply?

    Thnaks

    Pooja

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    • Former Member

      hI

      In T.code - OKO6 - allocation structure , in settlement cost element, define as below

      Receiver Cat - GL

      SEttlement cost element - eg 520100

      In the settlement rule in service order, give receiver as GL - eg the COGS -otheres a/c.

      This will transfer the cost to the GL as requried.

      Thanks

      kamala