Settle the amounts to Main Asset from AuC (Prcg type: Full) - KO88, 1. When you upload the file, you get notified, if you would reverse with the upload already existing plan data. Post Goods Issue; Billing; Other than FI & CO module, it is also integrated with Material Management ( MM). The expense posting of the goods issue and the revenue recognition postings are account assigned to the project (see object type = PR in column 7). For every posting on a wbs element we check if there is a leading sales order to the wbs billing element assigned (if the posting is done on a workpackage, which is no billing element, we read the superordinate wbs billing element). In the second section you see the balance sheet values. In SAP we do the following classification of the GL accounts on the functional basis as below and also there is an account type configuration A-Asset D-Customer K-Vendor M-Material S-GL which are further linked to document types. With a goods issue posting, you reduce the stock in the warehouse. In addition, the Monitoring apps support: The solution enables a fast period close, since most of the revenue recognition postings are already recorded and only adjustment and clearing postings need to be made. Reclassify an existing asset to a new class or to correct an error, Transfer an asset to a new one with the same class. I am quite new to SD and i have some questions that I hoped you will certainly answer. First is inter-company AR posted in sending entity. So could I for my long lead items buy them already with this AAC Q, post them on stock and then consume them in for example an MTO production order or deliver them to my customer? Delivery Document 3. To trigger the revenue and cost posting the project must have the status completed and fully invoiced. To continue this discussion, please ask a new question. All these postings lead now to the following margin reporting on the project. Then we will show you an end-to end process in the system including the scenario where we sell a manufactured product and post costs of goods sold split on the project. This topic has been locked by an administrator and is no longer open for commenting. We enhance the list of sales order item categories and the supported scenarios release by release. Figure 17 selection screen for overhead calculation. and the goods issue entry will change to below. We will enhance functionality on roadmap for example we currently specify the ETO scenario, customer downpayment and the valuated project stock. If you have not determined the batches to be picked in the warehouse request, and you want to pick one or more batches to cover the required quantity completely, you must verify these batches to the outbound delivery. The material document that is automatically created in the receiving system cannot be canceled. No actual reversal is posted in the receiving system, because the material document number of the original document does not exist in this system. The first two journal entries with two items each reflect the CO overhead calculation posting for material overhead and administration overhead: the debit of the project and the credit of the cost center in the second line item. You determine the movement type according to the schedule line category in Sales and Distribution. We subsequent post a goods issue of this one piece. On the very right column you see the balance of 28.08 on the WIP account. Note: We need to defer the billed revenues as we have already realized revenue with the cost postings. The configuration for these settings are done under OBYC tcode where a transaction key is assigned which finds depending on the movement type and valuation class or on the basis of condition type and access sequence which GL account should be automatically picked for journal entries. But you can define profitability segment manual by the settlement rule in the billing element. Asset acquisition posting could also be done without PO from the MM module. The POC is multiplied with the planned revenue: 4%*1200= 48 realized revenue. You can assign in the task the billing element or a subordinate wbs element. We close with deeper insights in the event -based revenue recognition. INVOIC), message code and process code. Post Goods Issue (PGI) - When goods are moved as part of the process to bring the product to the customer, a PGI is needed. I have 3 questions which are not clear to me: In a lot of cases your production can take weeks until months. With the Universal Journal it is now possible to use in one Journal entry line item several cost objects in parallel. Asset and liability both have increased in this case. Good Document on handling SAP Inter-company transactions, it gives good idea. A production or process order in this process uses a work center assigned to a cost center of another company code of the same group. On separate G/L accounts, by providing a comment, which is stored in journal entry item text, account assigned to the WBS billing element. Regarding the cross company stock transfer with billing. The first line of this journal entry reverses the goods issue amount. The transfer posting date will be used as the capitalization date. We select the button Post Billing document and get the Journal entries below for leading ledger 0L. Then we show, how we benefit in this scenario from the financial innovations in S/4, before we come to the architecture and scenario setup. When I hear this term, I associate it to the following keywords / phrases: . (**Under Intercompany Billing, there are two accounting documents. In doing so, you create a new warehouse request item for each batch. , which is the starting point for the goods issue. When we PGI a delivery doc., the accounting doc shows 2 entries, Inventory finished goods a/c - Credit entry of value 'x' Change in finished goods despatch - Debit entry of value 'x' For VF01, Customer a/c - Debit entry of total invoice value & Few other entries Here, there is no balancing credit entry for Change in finished goods despatch a/c In our example revenue recognition postings were triggered with. After the materials are withdrawn, the reference document is updated and the reversed material quantity is updated automatically. When you display the goods issue process using a warehouse request, you can execute the warehouse-internal processes that precede the actual goods issue, such as picking or packing, within the warehouse before you trigger the actual goods issue posting. These company codes could be establishments in different geographies, countries or could be related parties or affiliates operating at different levels of integration of supply chain (to give some examples). Is it possible to have the client account debited and a provision account credited during goods issue and when invoicing have the provision account debited and sales a/c credited. In example shown, purchase order is in company code 1000 and the assigned cost center 2010 belongs to company code 2000 (other cost objects such as orders can also be used). One difference to note is, ERS could be an alternative to Idocs in STO (subject to its limitations) whereas cross-company sales order should use I-doc since there is no goods receipt in the selling company code. In case of Work In Progress Settlement. When we receive the goods in the plant inventory will increase and Liability will increase. The 2 journal entries below are the revenue recognition postings- one Journal Entry per overhead rate. This solution is described in the following blog. This records any stock differences between the required and the picked quantity. As mentioned above, this scenario is integrated with event-based revenue recognition. We will keep you updated. I have explained the process in this video. Maintain pricing conditions if required as per definition of pricing procedure. Accounting entries during Production Order Execution - SAP I am wondering when you get some time. Finished Material, 4. If there exists one successor document for the sales order item like a delivery the wbs account assignment in the sales order item cannot be changed or deleted anymore. The posting date of the retirement posting will also be updated into the field "deactivation date" in the asset master as the retirement date. What is OTC. Please note: there is the option with the file upload and also SAC Integration available. An example for the controlling value flow for customer projects including the cost centers and their under/ over absorption you get in figure 4. in the current approach, in release CE 2011 we define the first assigned pricing and billing relevant sales order item as the leading one, and therefore, there can be only one assigned to the billing element. Thank you very much Manoj. Welcome to another SpiceQuest! There is no settlement in place.