Skip to Content
0
Former Member
Jul 29, 2011 at 12:42 PM

Accounting entries generated during production order creation and execution

3204 Views

Dear Experts,

What are the financial entries generated when I create and execute a production Order?

1. I mean after creating a production order to produce a semi finished material (HALB) from a raw material (ROH), are there any accounting implications for this created order?

I execute this order as follows

2. i carry out Goods Issue using transaction MIGO. The raw materials(ROH) are issued referencing the Production Order.

Material stock account of the ROH is credited, which account id debited? Is it the 'Offsetting entry for inventory posting' (acct modification VBR) account? or the production order?

3. I then carry out Goods Recept referencing the Production Order using transaction MIGO.

Material Stock account of the Semifinished Good (HALB) is debited and what is credited? Is it the 'Offsetting entry for inventory Posting' (acct modification AUF) account? or the production order?

4. I carry out confirmation of this Production Order, consuming activites Machine and Labour.

which accounts will be updated by this confirmation? how will the update look like? I mean which accounts will be credited and debited?

5. I carry out Production Order settlement, what will be the effect of this settlement? I mean which accounts will be updated by this order settlement?