GI and GR against production order

[Former Member]

Dear All,

I would like to clarify below. Hope can get advice if they are correct or not.

1) On issue goods to production order, is it goods issue whereby I need to credit the raw stock and debit to production order? Meaning the debit side is changes in stock account and tagged with cost object production order?

This changes in stock account(cogm) is cost element.

2) After it is done, I need to do goods receipt GR whereby I need to credit production order and debit fg inventory?

Meaning the credit side is changes in stock account and tagged wtih cost object production order?

This changes in stock account(cogm) is cost element.

3) any price difference, also changes in stock account which tagged with cost object internal order.

This changes in stock account(cogm) is cost element.

4) changes in stock for WIP is not cost element. it is not cogm.

Thanks

[former_member309133]

Hello

Only the 3rd point has some problem. Here the effect goes to changes in stock account (COGM) which is a cost element with the cost object being production order. The offsetting account will be the produciton variance account which is not a cost element.

Thanks,

Sangram

[Former Member]

Dear Sir,

May I know if all are correct?

Also for your correction, may I know "offsetting account will be the produciton variance" - this account is a balance sheet account? because I think "changes in stock account (COGM)" is a p&l.

Need your confirmation.

Thanks alot