Account assignment category

[Former Member]

Dear All,

We use various account assignment category in our purchasing documents when we want to get the material/service cosumed to any object (cost center/asset/internal order etc.)

For example,for a certain material X,i can procure it without using any account assignment and also i can procure it with using a certain cost center as account assignment category.

My query is when does and on what criterion does the decision takes place is whether the material willbe consumed by any object or put it storage location?

Also while using any account assignment (lets say K),system asks for cost centre and g/l account.Is there any link or integration between the given cost centre & g/l account?

regards,

indranil

[Former Member · Accepted solution]

Hi Indranil,

initialy i also got same query about account assignment..and i have received very good ans. from this forum about account assignment giving same for ur reference

The account assignement comes into picture when you order the material as Indirect. In case of direct it gets valuated under raw material, semi finished, finished etc (Valuation class).

In Account assignment you assign a specific G/L account to a cost center. In reality you can have different cost centers like Production, Maintenance, Quality etc and different G/L accounts like Raw material consumption , machine tools, computer software, buildings, machineries etc.

Suppose if a machine has been procured for production purposes it gets accounted in the machineries G/L account and the cost is accrued by production. Same case if a measuring instrument is procured by Quality department it gets accounted in machineries G/L account and the cost is accrued by Quality department.

It helps in analysing the spend of each department as per the allocate d budget and also helps in allocating budgets to respective departments for future purposes.

In case of consumption of material by different departments for adhoc purposes like tape, screw drivers, hammers, nuts, bolts etc (can be any thing), the material consumption is valuated against cost centers. The material gets issued against a reservation for a cost center like maintenance, production, quality, HR etc.

Hope this will solve ur query

Vishal....

[Former Member · Accepted solution]

thanx for the reply vishal.

one more query i have is while i am using account assignment asset,after creating the gr no accounting document gets created.why so?????

regards,

indranil

[Former Member · Accepted solution]

hi

Please check in PO item details Delivery tab. In that GR Non-valuated checkbox might be checked. Generally for account assignment category asset it is ticked.

If you tick GR non-valuated check box then at the time of GR accounting document will not be created. Accounting document will be created only at the time of IR.

Regards

Vishal

[Former Member · Accepted solution]

Hi Indeanil

If Gr non valuated is not ticked in PO then only system will create account document for that asset.

Usualy GR non valuated is ticked for asset material

Vishal...

[Former Member · Accepted solution]

why GR non valuated is ticked for asset????

regards,

indranil

[Former Member · Accepted solution]

hi

It is commonly used for purchasing of fixed assets, because in most countries you do not post

the acquisition until you have the legal back-up in the form of the supplier's invoice.

Also, it is not desirable to post an estimated value (based on the GR) plus a correction

(based on the IR).

Whether should you used non-valuated Goods Receipts or not would certainly depends on your

company's financial policies.

[Former Member · Accepted solution]

more to add with WISH

usualy in case of assets we do not know exact cost incured for asset at time of GR...we come to know only at time of IV ( when we receive vendor invoice for same ).in such cases we Tick GR as non valuated so that accounting document will be created only at time of IV

Vishal...

[Former Member · Accepted solution]

thanx

[Former Member]

hi,

Direct consumption means that stock will not be kept ( it will amount to 101 + 201 movt type).

these types of procurement is done when a material is purchase for specific cost centre.

while in which we don't know where we will be consuming ie. may be use in more than one cost centre.then we take it into stock.

regards,

vijay

[Former Member]

hi Indranil

Yes there is relation in G/L account and Cost center

The GL account for Cost Centre will picked up from OBYC trxn.

Here we will maintain the Valuation class & GL account Combination

Go to OME9

Double Click the "K" & you will see the "Acct modification" VBR

In GBB >>>> VBR

You should have the Valuation class & GL combination here, this assignment is one to one..

Suppose my valuation class is 1000 & I made setting for GL 200000

The system will not allow othe GL combination for Val class 1000 for VBR.

Regards

Vishal

[Former Member]

Thanx for the reply.

what does the word "consumed directly" really means?

i mean to say that when i am using a cost centre,then the material willbe directly consumed to that cost centre rather than keeping it in stock.

who or in what scenario does the cosumption happen?how will i know which department have cosumed and for what further process is taking place.

regards,

indranil

[Former Member]

Hi

Scenarios like Third Paty order, Supplies which are not stored, are directly consumed. The supplies differ from Business to business.

In some industries Stationary is treated as a consumbale. whicih is procured for a costcenter called administration department.

Thanks & Regards

Kishore

[Former Member]

Hi

If you observe the account assignment category in customzing there is a field in the detailed information called the "Special Stock Indicator".

This indicator determines whether the material procured with account assignment category is to be kept in Stock or Consumed directly

These are the Special stock indicators avilable in the System

E Orders on hand

K Consignment (vendor)

M Ret.trans.pkg vendor

O Parts prov. vendor

P Pipeline material

Q Project stock

V Ret. pkg w. customer

W Consignment (cust.)

Y Shipping unit (whse)

Thanks & Regards

Kishore

[Former Member]

Hi,

when a material is procured for direct consumption ie. for particular cost centre then we can use account assignment k category.

but when we procure material for which we don't know to which cost center it is to be booked. then we take it into the stock.

Regards,

Vijay

[Former Member]

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