The following describes the accounting transactions the system creates when you issue material for a manufacturing order.
Note: The calculations are based on the assumption that the preloaded default cost model (*DFT) is used. Refer to About cost models for more information.
Prerequisites
The following values are used in the transaction calculations in this example:
| Variable | Value |
|---|---|
| Issued quantity | 5 |
| Cost (FIFO, average or standard cost) | 100 |
| Item group overhead (%) | 10 |
| Item group base value overhead (%) | 10 |
Created transactions
The following transactions are created in the INV001H program when material is issued from a warehouse for a manufacturing order:
| Transaction type | Description | Amount Debit |
Amount Credit |
Additional info |
|---|---|---|---|---|
| 770 | Manufacturing material issue | 500 | Material cost (Cost model element 10) | |
| 901 | Stock value | 500 | Cost for material that is issued from warehouse | |
| 121 | Material reporting | 50 | Material overhead (Cost model element 20) | |
| 122 | Material reporting | 50 | Material overhead (Cost model element 20) | |
| 141 | Reception reporting | 55 | Base value overhead (Cost model element 90) | |
| 142 | Reception reporting | 55 | Base value overhead (Cost model element 90) |
Calculations
The following equations outline how the values in this example have been calculated:
| Calculated value | Equation | Calculation |
|---|---|---|
| Stock value | Cost * Issued quantity | 100 * 5 = 500.00 |
| Material overhead | Stock value * Item group overhead (%) | 500 * 0.1 = 50 |
| Base value overhead | Summary of cost elements 10, 20, 30, 40, 50, 60, 70 and 80 * Item group base value overhead | 500 + 50 * 0.1 = 55 |