Posting Groups #8 – Revaluation Posting

In my last post, I have touched Revaluation process, but only for Standard cost changing. We can use Revaluation for other cases, as well.

If we change cost only for items on stock, it will be the same situation as on previous example. But, if we want to change cost for already sold or consumed stock, it will be with some differences. First, when we change the cost, we will get the same entries, as I already show in previous post. But, when we run Adjust Cost – Item Entries batch job, we will get the new G/L entries.

I made three scenarios:

In the first scenario, I have raw material with FIFO cost type. I consume this raw material on production order to produce finish goods, configured as also FIFO cost type. In this case, result of posting in G/L entry will be as following:

RevPOfifo

In the second scenario, everything was the same, but only finish goods was configured as Standard cost type. In this case, result of posting in G/L entry will be a bit different, as following example:

RevPOstd

And, in the third scenario, I change the cost on already sold items. In this scenario, G/L entries will be as following:

RevSO

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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