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.
Comments
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
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
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
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
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
Administrator on 12/2/2017 12:10:36 AM
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