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Effect on P & L at the time of MIGO & MIRO

Former Member
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Hi,

What is the effect on P & L when we do the MIGO & MIRO.

One of my FI User, basically a CA, says that when he does the MIGO & MIRO, and it affects his P & L.

I have doubt in his statement, reason being when we see the FI Documents at the time of MIGO & MIRO , the G/Ls getting affected are of "Balance Sheet" nature , then how come it is hitting the P & L?

Is our G/L assignment wrong or there is something wrong in CA's Statement ?

I am not much aware of the accounting terms, hence I kept mum.

Please giude.

Regards,

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi PK,

You are right..

When we make MIGO & MIRO---> All inventory accounts & vendor accounts get reflect in Balance sheet account only.

But If your Price indicator "S:" in material master .. then if Price difference account is P& L account..

or any unplanned delivery cost if you post directly then it will affect the P& L account.

otherwise P&L account will not hit.

SAM

Answers (1)

Answers (1)

former_member187989
Active Contributor
0 Kudos

Your statement is absolutely correct one,See this link

[B/S and P/L Accounts|]

[Difference between a B/S ac and P&L ac|]

Edited by: Jeyakanthan A on Jun 19, 2010 9:58 AM