why Controlling document after PGI

[former_member700683]

Dear All

I got a problem, after PGI ,it supposed to create material document and FI document,but I saw controlling document accroing the material document, it's so weird.

Plz tell me the reason if you know,thk!

Best regards,

Jessie.

[sanilbhandari · Accepted solution]

Hi minjiejie

What is the accounting entry which has been posted at the time of PGI? If you have created COGS Account also as a Cost Element, controlling document should be created.

Generally if you are on ECC and using Costing based COPA, the entry at the time of PGI is as below:

COGS - FG Dr

To FG Stock

However, the cost of goods in costing based COPA flows through VPRS Condition assignment to Value field, which updates the cost in COPA. However, if you create COGS -FG as cost element it would ensure that controlling document is created.

On other hand, if you are on S/4HANA and using Account based COPA, it is correct to create the COGS Account also as a cost element to capture the cost into COPA at the time of PGI.

Thanks & Regards

Sanil Bhandari

[former_member700683 · Accepted solution]

Hi,Sanil Bhandari.

I'm glad to hear from you,but forgive me for my shallow knowledge.

I just click the button 'Post Goods Issue', about "accounting entry",you mean...?

and "created COGS Account",where can I find it?

I look forward to your answer.

Thanks & Regards.

[sanilbhandari · Accepted solution]

Hi minjiejie

You can find the accounting and controlling documents related to PGI by following the process shown below

In this case, PGI has been done for a traded good and hence the accounting entry.

The accounting entry which in our system was triggered is as below:

Consumption Trading A/c Dr

To Stock Trading Account

(I would have loved to update more screen shots, but some how i cannot upload more than two pictures, seem to be a bug in the community today)

Now with this accounting entry we also generate a controlling document since we use COPA to generate our internal reports on Profitiability based on various dimensions like product, customer, line of business and son on

Coming to your original question on why controlling document is generated at the time of PGI, it is so because a P&L Account is involved. Whether the P&L account which is used at the time of PGI should be created as a cost element or not depends on the application architecture in your system. If you use Account based COPA, than yes it should be created as a cost element and consequently a controlling document is created always, since the cost has to flow into GL as well as controlling to keep them in sync

However, if you use Costing based COPA, than the P&L Account used at PGI may not be created as a cost element, since the value from of material cost will flow into COPA at the time of Billing and not PGI.In this case, the material cost will be captured in GL at the time of PGI.

Generally every material movement where product is being consumed or a cost is incurred will generate a controlling document. So all kind of material consumption (provided it is a valuated stock) will lead to a controlling document.

However, if you are receiving stock from an external vendor, there may not be a cost, since you are ultimately building stock from accounting perspective and hence in this scenario, most of the times, you will not see a controlling document (there are exceptions eg, your material is valuated at standard price and your PO price is different, in this case you will have price difference, which being a cost will again generate a controlling document)

If you are an end user or not a finance consultant, I would suggest that you work with your IT Finance Support team, who should also be able to help you understand the same.

Hope this helps

Thanks & Regards

Sanil Bhandari

[former_member700683 · Accepted solution]

Hi,Sanil Bhandari.

Thanks for your help and constructive guidance,without which I couldn't got it in a quick way.

Appreciate it.

Thanks & Regards.

min jiejie.