OBYC BSX GL account P&L

[Former Member]

Hi,

I have a strange scenario, where for spare parts for accounting purpose should be shown in consumed (P&L GL) during G/R itself. but for MM and PM the inventory should be available in stock and later issue to maintenance order and settlement.

Valuation class 3040. Want these as valuated stock.

So is it possible to assign P&L GL in BSX so that for accounting its consumed, and any subsequent entries like goods issue and order settlement will also be in P&L there by no extra impact.

I am want to know if this is possible and if there is any impact like during year end etc.

Thanks

[BijayKumarBarik]

Hi,

Just assign Balance Sheet Account from automatic account determination process in transaction code: OBYC with BSX transaction key with valuation class of spare parts for automatic accounting posting on goods receipt.

Keep assigning a P&L account with valuation class of spare parts for automatic accounting posting from automatic account determination process in transaction code: OBYC with GBB transaction key & general modifier VBR.

In your case create purchase order for spare parts with account assignment category K and upon goods receipt, system will post to P&L account.

Regards,

Biju K

[Former Member]

hi Biju,

Thanks for the reply.

My requirement is not only to book the purchases to P&L but i will need those materials in MM module with value and allow me to issue those to PM orders.

thanks

[ajaycwa1981]

Hi Vasu

You are contradicting your own statement

My suggestion -

1. Define the material as Non Valuated - With Qty Tracking

2. Do the GR, expense gets charged to P&L (Cost center or Internal order or Maint order, whereveer you want)

3. Issue the materials for Maintenance - Do 201 - System will onlycharge the Qty to Maint order, not value

Thats the only possibility I see in this..

You want to charge off to P&L during GR, but want to retain value in MM - Thats not possible...

If your intent is to charge to P&L during GR - Activate Purchase Accounting.. It will pass addnl set of entries like Purchases Dr and Purchase Off Setting Cr (both are P&L Accounts)

Br. Ajay M

[Former Member]

hi Ajay,

thanks for your reply. I did not understand where i am contradicting.

As per my initial requirement, i will need materials in MM module with values so that when issued to maintenance orders, cost is captured in PM for their analysis of maintenance cost of each order.

by assigning a P&L account in BSX, my idea is to arrive at below entries.

Activity	GL Description	Account type	Cost object	DR/CR
Goods receipt	Spares parts	P&L	WBS	Dr
	GR/IR clearing account	B/S		CR
MIRO/Invoice	GR/IR clearing account	B/s		Dr
	Vendor Account	B/s		Cr
Goods Issue to PM	Maintenance and repair	P&L	PM Order	Dr
	Spare parts	P&L	WBS	Cr
PM order settlement			PM Order	Cr
			WBS	Dr

Please let me know if there will be any negetive consequences due to this.

Thanks

Vasudev

[ajaycwa1981]

Bro,

I mean your requirerment is contradicting..

What will happen with the approch you have suggested - In the 3rd accounting entry, both will go to PM Order as per standard SAP..

If you want the GR to be assigned against a Project (WBS), then receive it as a Project stock (Account Assignemnt Catg Q).. It will hit Stock Dr and GR IR Cr, but still the stock will be assigned aaginst a Project

br, Ajay M

[Former Member]

hi Ajay,

thanks for input, below is my reply.

What will happen with the approch you have suggested - In the 3rd accounting entry, both will go to PM Order as per standard SAP..    : since its stock materials, i will do a goods issue to PM order. so PM order will be received and project stock (wbs) will be sender.

If you want the GR to be assigned against a Project (WBS), then receive it as a Project stock (Account Assignemnt Catg Q).. It will hit Stock Dr and GR IR Cr, but still the stock will be assigned aaginst a Project : Yes, the idea is to do the GR as Project stock account assignment Q.

Do you foresee any mismatches?

Thanks

Vasu

[ajaycwa1981]

Hi Vasu

When you do a GR against Project ----> It does not mean it is charged off to P&L..

The accounting entry you are expecting in (3) wont be possible.. You want to Dr PM Order and Cr WBSE - That wont happen

Scheme of entries suggested are

1. GR -

Stock Dr (Stock assigned to Project)

GR IR Cr

2. GI to PM Order -

Consumption Dr (PM Order)

Stock Cr (WBS Element)

In this approach, GR hits Balance sheet account for Stock, and then value gets charged to P&L (PM Order) upon GI

Hope this helps

Br, Ajay M

[Former Member]

hi Ajay,  really appreciate your time for the inputs.

below is my response.

When you do a GR against Project ----> It does not mean it is charged off to P&L.. - if for BSX I am assigning in a P&L account as informed above?

The accounting entry you are expecting in (3) wont be possible.. You want to Dr PM Order and Cr WBSE - That wont happen -  i tried in Sandbox and it did happen

Scheme of entries suggested are

1. GR -

Stock Dr (Stock assigned to Project) (want this to be a P&L Account from BSX)

GR IR Cr

2. GI to PM Order -

Consumption Dr (PM Order)

Stock Cr (WBS Element)(P&L Account from BSX)

In this approach, GR hits Balance sheet account for Stock, and then value gets charged to P&L (PM Order) upon GI. the client requirement is not to show the spares in Balance sheet as asset. its basically a operator and cannot show anything as assets. it has to be charged to P&L upon receipt.

hope I am bit clear now on requirement.

Thanks

Vasu

[ajaycwa1981]

Hi Vasu Dev

you may go ahead with the solution you wish, if you have tested it and giving you the results desired

All I can say is this is not correct... You are holding the stock and you want to charge it off.. Assigning a P&L account in BSX, does not seem OK to me

I would still stand by what I have suggested above

Br, Ajay M

[Former Member]

Hi Ajay,

I understand your concern. General Accounting wise its not correct. But this is a special case where client do not have the ownership of spares after procurement which they can show as assets.

My major concern was with regard to any system issues.

thanks

Vasudev

[Former Member]

Hello,

I would recommend you to use substitution for your GR so system will pick up stock account from configuration but will be substituted (you can have based on Movement type or valuation class etc.. , probably can have some unique for this process,) with the expense account.

Regards,

[Former Member]

Hi Vasudev,

If the spare parts are consumed during the year itself then you are not going to keep track of inventory.

So better create this as non valuated material and assign P&L GL account for the non valuated valuation class.

Hope it is clear.

Regards,

G.Sethuraman

[Former Member]

Hi Sethuraman,

thanks for the reply. the issue with non valuated material is that the cost will not flow to PM orders and they cannot arrive at maintenance costs.

For keeping track of inventory, i assume MM module will have the quantity wise tracking although in finance its shown as fully consumed.

regards.

Vasu

[Former Member]

Hi Vasudev

I believe since Finance has decided to directly consume the costs, the material prices are insignificant.

I am not sure about any standard solution or whether your requirement is per standard SAP Best practice, however would put forth a workaround, where the POs for scrap materials are raised with reference to Internal order, thereby whenever you do GR, it is consumed (FI requirements met) and MM / PM guys could track the quantitative details from this Internal Order. You can have One IO for each material.

Materials would be issued to PM Orders from this Internal Order and therefore costs will get credited to IO and Debited to your respective PM Orders.

At Month end, you can decide whether to settle remaining costs to either Balance sheet (Inventory Valuation GL) Account or P/L Account (Cost Center)

Hope ite helps

Regards

Mustafa

[Former Member]

Hi Vasu,

It is possible to enter P&L GL in BSX.

But BSX transaction is posting to balance sheet account so make 100% sure to test all the scenarios like GR,Goods issue and order settlement etc in test client.

Check the effect in balance sheet also.

But it is better not to violate standard practices.

Hope it is clear.

Regards,

G.Sethuraman