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 #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