Posting Groups #7 – Change Standard Cost

If you use Standard cost type for your Items and you want to change it, you need to use Standard Cost Worksheet. When you run Implement Standard Cost Changes command, all changes will be moved to Revaluation Journal.

When you post Revaluation Journal, you will get following G/L entries, if you have cost increasing:

std_rev_1

If you have cost decreasing, you will get the same Accounts, but the different values, as following:

std_rev_2

Posting Groups #6 – Manufacturing Posting (Std. Cost Type)

In my previous post, I describe all G/L posting results when we do with production, but using FIFO costing method. It this new example, I will describe results of posting when we have finish goods with Costing Method configured as Standard.

In this case, we use the same flow chart for posting groups, as I have described in my previous post.

In this example, when we post consumption and output, we will get following entries in G/L Ledger. In this case, we will get entries from cost of Item consumption and cost of Work Centers using, and value for output Item based on Standard Cost:

C&OJPstd

When we change status of Production Order to Finished, we will get additional G/L Entries. These are correction of standard cost on output Item and variance from standard to actual cost. You can find these entries in next table:

POsFstd

Posting Groups #5 – Manufacturing Posting

When we post manufacturing processes, we have Production Order as the base document. Then, we can use Production Journal (for posting in one step), or Consumption and Output Journals (for posting in two steps). Never mind, what you variant use, result in G/L Entries is the same.

In any case, we have some rules about using posting groups. Some posting groups are used from items, and other from work centers. In following chart, you can see how system uses posting groups in manufacturing posting.

Production Diagram

Difference in G/L Entries can be based on Costing Method you use for output items. It is not the same when you use Standard or some other costing methods. In this example, I will describe non-standard method (in this case I have used FIFO). I will describe using of standard method in next post.

In this example, when we post consumption and output, we will get following entries in G/L Ledger. These are only cost of Item consumption and cost of Work Centers using:

C&OJPfifo

When we change status of Production Order to Finished, we will get additional G/L Entries. These are cost of output Item, calculated from consumption Items and Work Centers usage. You can find these entries in next table:

POsFfifo

Posting Groups #4 – Adjust Cost – Item Entries Posting

When we run Adjust Cost – Item Entries batch job, system forwards any cost changes from inbound entries, to the related outbound entries. In our small example, we will see what we will get after post Item Charges to already sold items. Currently, we will use very simple example; we have only purchased and sold item.

In this example, automatic cost adjustment is not configured. We can use example with additional costs using Item Charge or using higher cost on Invoice in comparison with Receipt.

When we run this batch job, we will get G/L Entries as result. You can find completely description of them in next table:

ACIE-1

System will post only the difference between the higher and lower costs. System will use Inventory Posting Setup from Inventory Posting Group and Location on source document. On the same way, system will use General Posting Setup from the same source document, but from General Business and Production Posting Groups from document header and line.

In some other examples, it can be more complex posting, but I will process this examples in another articles.

Posting Groups #3 – Item Charges Purchase Posting

When we post purchase of items, we have item charges very often. We can post item charges on the same order with items or on different one. In my example, I will use independent document for already receipted items.

In this case, we have the similar rules about using posting groups as we post item purchase. Some posting groups are used from document header, and other from document line, as I already described in older post. But, in this case some of posting groups are inherited from the already posted receipt. You can see all combination on following chart:

Dijagram Item Charge

When we post this document, we will get G/L Entries as result. You can find completely description of them in next table:

PPI-ic

Posting Groups #2 – Item Sale Posting

Similar as purchasing, when we want to post item sale, we can do it in one step (posting shipment and invoice in the same time) or in two steps (posting shipment in the first step, and then posting invoice). You can also use some additional ways with Warehouse Management, but the G/L entries will be the same.
In my example, I have used second way with line and invoice discounts, for better example.
But, in any case as in purchase model, we have some rules about posting groups. Some posting groups are used from document header, and other from document line. In following chart, you can see how system uses posting groups on documents.
Dijagram Sale
When we finish posting of shipment, we will get only two entries in G/L Ledger. These are only entries about inventory:
PSS-i
When we post invoice related with posted shipment, we will get more entries in G/L Entries. You can find completely description of them in next table:
PSI-i

Posting Groups #1 – Item Purchase Posting

When we want to post item purchase, we can do it in one step (posting receipt and invoice in the same time) or in two steps (posting receipt in the first step, and then posting invoice). In my example, I have used second example. In my example, I also use line and invoice discounts, for better example.

But, in any case, we have some rules about posting groups. Some posting groups are used from document header, and other from document line. In following chart, you can see how system uses posting groups on documents.

Dijagram

When we finish posting of receipt, we will get only two entries in G/L Ledger. These are only entries about inventory:

PPR-i

When we post invoice related with posted receipt, we will get more entries in G/L Entries. You can find completely description of them in next table:

PPI-i1