GL Transactions for Periodic Costs
The following topics summarize system events when creating GL transactions for periodic costs.
The system creates GL transactions, based on the periodic costs calculated for the current open calendar period.
When periodic cost is recalculated for an open GL period, the system deletes all periodic costing GL transactions created during the previous periodic cost calculation for the open period before it creates GL transactions based on the recalculated periodic cost. The system can create GL transactions for both base and statutory currency that are specified for the periodic cost calculation.The generated transactions create consolidated GL transactions that are grouped periodic costs transactions by domain. When SAF is in use, the transactions include SAF structure.
The Inventory accounts, sub-accounts, and cost centers used in the periodic cost GL transactions default from the product line, detailed product line accounting, and department definitions such as purchasing, sales, work order account, inventory, product line, or Domain/Account Control. If applicable, the following are included:
• System SAF
• Accounts specific to periodic cost definition
• Mirror accounting
When periodic cost GL transactions are based on the calculated periodic cost for the current period, receiving transactions (RCT-PO) are used for periodic cost calculation. The system creates the supplier invoice and actual PO cost in GL and generates PPV into GL.
The system generates an issuing GL transaction for WO components issued and returned inventory transactions. Before generating the issuing GL transactions, the system calculates five categories of costs of all issued components (raw material and semi-finished goods). The system also generates a receiving GL transaction for WO product (semi-finished and finished goods) receipt and return inventory transactions. The system calculates all previous ISS-WO, labor transactions from raw material or semi-finished goods for the same work order/cumulative to have the proper WIP balances and calculate the RCT-WO transactions.
When calculating a negative work order receipt in a situation where there is not enough quantity in inventory, the system deducts the remaining quantity from the discrepancy account.
Example:
|
|
Quantity
|
Unit Cost
|
Amount
|
|
Inventory Balance
|
10
|
|
40
|
|
RCT-WO
|
-12
|
5
|
-60
|
Since the unconsumed quantity in this example is 10, the cost of 10 will credit from the inventory account and the cost of the overissue quantity of 2 will credit from the discrepancy account. The expected GL Transactions of RCT-WO:
Dr WIP 50
Cr Inventory 50
Dr WIP 10
Cr Discrepancy 10
The system generates an issuing GL transaction for SO shipments and return inventory transactions. If Sum Lower Level Cost into Material Cost is set to Yes in Periodic Costing Control File (30.5.24), the system sums lower-level costs into COGS material cost.
The system generates an inventory GL transaction for inventory transactions, including:
• Transfer between sites and locations
• Receipt and issuing unplanned
• Cycle count
• Physical inventory
The system generates an inventory or shop floor GL transaction for the following transactions:
• WO accounting close
• Cumulative order close
• Scrap transaction
The system creates a periodic cost adjustment GL transaction for the unit cost adjustment, total cost adjustment, or WIP cost adjustment that are separate from the CST-ADJ transactions created for standard cost. The unit cost adjustment transaction impacts inventory account and the revaluation account.