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According to the existing production posting setup in the cost management or inventory management, several WIP posting entries including offset accounts are enabled:


- Estimated cost of materials consumed, WIP


- Estimated cost of materials consumed


- Estimated manufactured cost


- Estimated manufactured cost, WIP


- Cost of materials consumed, WIP


- Cost of materials consumed


- Manufactured cost


- Manufactured cost, WIP


However, in the standard case these entries will refer to inventory accounts.


What is missing and urgently required for covering financial statement requirements is to include the P&L posting applied at least for semi-finished and finished goods. This is quite a standard requirement not possible to define in the system.


The proposed solution is to provide a 4 column setup table with the possibility to define up to 2 debit account entries and up to 2 credit account entries in order to limit the amount of line entries.

Category: Cost management
STATUS DETAILS
Under Review
Ideas Administrator

Thank you for your feedback. Currently this is not in our roadmap; however, we are tracking it and if we get more feedback and votes, we may consider it in the future.

 

Sincerely,

Anders Even Girke

PM, Microsoft

Comments

H

Thank you Ludwig. I basically understand what kind of workaround you are suggesting. Let us keep this requirement for Microsoft to provide a really suitable solution for this. I am going to send additional information and what my ideas are directly to the PM.

Category: Cost management

H

Hi, based on the additional information provided I still cannot see a gap in the standard application. I should probably post some posts on my blog sometimes next year to illustrate how this can be setup. Best regards, Ludwig

Category: Cost management

H

In the "Report as finished" we have


1. Finished goods: Debit


    WIP: Credit


According to most legislations, inventory changes need to be tracked in the P&L:


1. Finished goods: Debit


    Stock variation finished goods: Credit


2. Stock variation unfinished goods: Debit


    WIP: Credit


This is also a legal requirement in at least France, Switzerland, Germany and other countries.


Only workarounds possible are


1. Manual GL entries --> what do we have a posting Integration for???


2. End all Production Orders: Not realistic in practise to organise

Category: Cost management

H

In order to enable a better understanding:


The gap applies to "Picking list" and "Report as finished":


For the picking list, we have


1. WIP: Debit


    Material: Credit


According to most legislations, inventory changes need to be tracked in the P&L:


1. WIP: Debit


    Stock variation unfinished goods: Credit


2. Material expenses OR Stock variation unfinished goods: Debit


    Raw material OR unfinished goods: Credit


As long as the production order is open, the postings are incomplete. The reason is that consumed material is treated differently depending on whether it is raw material (--> "Material expense") or WIP/unfinished goods (--> "Change in inventory").


After ending the production, the postings are correct again as the respective offset account is used from P&L.


However, in practise it is not possible to close all production orders for financial closing.

Category: Cost management

H

From the description provided above I cannot identify a gap in the standard application. The postings on the semi-finished and finished goods accounts can be achieved through a configuration of the standard posting profile. Probably provide more information and a detailed example of the things that you can't realize. Many thanks, Ludwig

Category: Cost management