on 05-24-2011 8:43 AM
Hello Guru,
can you plz explain me below Refurbishment process more of in accounting side, ie. I want to know how cost flows?
1.Create Refurbishment Order.
2.Issue Damaged material (Movement type 201)
3.External service procurement
4.GR for External Services. - what is impact of this amount on material?
5.GR for Refurbishment material (Movement type 101) - how the amount get calculated? Is it a Moving Avg Price of Material?
(can both cost incurred in step 4 & 5, will get settled against material?)
6.TECO of Refurbishment Order
7.KO88 of Refurbishment Order
If anybody can explain with example then its good for understanding.
Thanks in Advance.
Regards,
Amol.
Hi,
While doing Refurbishment, the value of the component will be increated. Pre-requisite would be spilt valuated material. So for each valuation category, separate value would be maintained.
For example, there can be 3 different valuatation categories.
1. New - Rs. 1000
2. Old - Rs. 200
3. Refurbished - Rs. 500
Generally refurbishment will be done from Rs. 200 worth component to Rs. 500 worth component.
GR for Refurbished component will get the price from the Valuation category of that component.
[Cost for Refurbishment Order|]
Regards,
Maheswaran.
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Hi Maheshwaran,
Thanks for reply but my question is little bit different from the link which you mentioned. for ex.
Material - ABC
Cost are C1(New) - 1000 INR & stock -1
C2(Damage) - 0.01 INR & Stock - 1
C3(Refurbished) - 600 & Stock - 2
Material sent externally for Refurbishment & the service cost is of 400 INR
Internal Labour cost & material cost = 0 INR
1.Created Refurbishment Order -> Planned & Actual Cost = 0 INR
2.Issued C2 material against Order -> Planned & Actual Cost = 0 INR
3.GR for Services of 300 INR -> Actual Ext service Cost = 400 INR
4.GR for Refurbished Material C3 ->Actual Material Cost = ? (i think its -600 INR, moving avg price of C3, which will get credited to order)
5.Order Confirmation = 0 INR
6. TECO
7. KO88 =? ---How much cost will get settled against Material ABC & after settlement, how much will be the moving avg price of C3 material?
Regards,
Amol.
Hi,
Here Actual expense is 400 INR. And you have 2 qty is stock at 600 INR each.
So the final Moving Average Price would be
Total Value is (400+ 2*600) => 1600.
Total Qty is 3.
So Moving Average price will be (1600 / 3) => 533.33 INR
Settlement Part, please check as I am not having IDES system here.
I think, settlement will happen for 400 INR thats why the Material Moving average price is getting changed. Settlement will happen to Material in case of Refurbishment.
Regards,
Maheswaran.
Hi Maheswaran,
I checked in system & the price are,
1.After GR for Services -> Actual Ext service cost = 400 INR
2.After GR of refurbished material -> Actual Cost of Material = -600 INR
During KO88, the balance amount of order wll get settled against Material, which is -200 INR(=400-600), system not allowing to do KO88, giving error of "negative moving avg price of material" ---plz correct me if I am wrong.
Can you plz suggest in this situation.
Regards,
Amol.
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