Accounting Rules for PP - Purchase Processing

PP05: Planned Purchase Orders

When applied

No account entries are created for this accounting rule. The accounting string defined for the accounting rule is proposed by default when you manually specify an accounting string in 'Planned Purchase Order. Open' (PPS171) by using function key F11. This manually specified accounting string is used to create account entries PP10-903 and PP20-903.

Accounting rules for PP05: Planned purchase orders

Rule D/C Name Description
PP05-903   Fictive inventory, non-inventory Represents the inventory accounting price of the item. Only used for non-inventory items.
PP05-910   Inventory Represents the inventory accounting price of the item. Only used for inventory items.

PP10: Goods Receipt

When applied

The basis for the account entries is created in one of these situations:

The actual account entries are created when 'Internal Account Entry. Create' (CAS950) is run.

References

See Account Entries Created in Purchase Costing.

See Introduction to Purchase/Distribution Costing.

See Costing Purchased Items.

Accounting rules for PP10: Goods receipt

Rule D/C Name Description
PP10-225 C Goods received/not invoiced: Item

Represents the net total value of the purchase order line.

Note: To be able to use 'Purchase Order. Print Rcvd/Not Invoiced' (APS580), all accounting rules with accounting type 225 must be identical in all seven accounting dimensions.
PP10-226 C Goods received/not invoiced: Line charge

Represents one external line charge in the purchase costing model connected to the purchase order in 'Purchase Order. Connect Charges' (PPS215). A prerequisite is that charge type 2 (External) and distribution method 1 or 3 are selected for the costing element representing the charge in 'Costing Element. Open' (PPS280).

Note: To be able to use 'Purchase Order. Print Rcvd/Not Invoiced' (APS580), all accounting rules with accounting type 226 must be identical in all seven accounting dimensions.
PP10-227   Price variance: Item

Represents the inventory value of the item. The difference between the net total value of the purchase order line and the inventory value. Only created when:

  • The 075 check box is selected in (CAS900)
  • The item is standard-costed (that is, with inventory accounting method 1).
PP10-228   Price variance: Charge

Represents the inventory value of the charge, that is, the difference between the purchase order line charge and the charge according to the inventory cost. Only created when:

  • The 075 check box is selected in (CAS900)
  • The item is standard-costed (that is, with inventory accounting method 1).
PP10-251 C Internal line charge Represents one internal line charge in the purchase costing model connected to the purchase order in 'Purchase Order. Connect Charges' (PPS215). A prerequisite is that charge type 1 (Internal) and distribution method 1 or 3 are selected for the costing element representing the charge in 'Costing Element. Open' (PPS280).
PP10-280   Rounding-off  
PP10-301 C Realized exchange rate gain Used if the exchange rate selected for the purchase order values causes a variance in the standard cost calculation, provided that the 080 check box is selected in (CAS900). Only used for standard-costed items.
PP10-302 D Realized exchange rate loss As PP10-301, but represents the exchange rate loss instead.
PP10-620 C Internal revenue Represents the internal price a facility has to pay when receiving goods ordered to another facility. Only used with MUC trigger is 1.
PP10-903 D Non-inventory item: Expense Net total value of the purchase order line. Only used for non-inventory items.
PP10-907   Offset account Represents the offset account. Only used with MUC trigger 1.
PP10-910 D Inventory

Represents the total of the inventory value and any charges based on the inventory accounting method of the item.

Only used for inventory items.

PP10-911   Purchase price variance

Represents the difference between the net value of the purchase order and the inventory value. Only created when the 080 check box is not selected in (CAS900).

Only used for standard-costed items.

PP10-951 D Delivered/not invoiced Represents the net total value of the purchase order line. Used for purchase orders that are connected to a customer order or service order with line type 2 (Direct delivery).
PP10-920   Work in progress: Work performed Represents the amount of subcontract operations based on 'Supplier. Connect Item' (PPS040) or 'Product. Connect Materials/Operations' (PDS002).
PP10-971 D Cost of goods sold Represents the value of the goods in the facility which ordered the goods.

PP15: Put Away

When applied

The basis for the account entries is created when goods are put away in 'Purchase Order. Put Away Goods' (PPS320) in the case where the put-away quantity differs from the received quantity. The actual account entries are created in 'Internal Account Entry. Create' (CAS950).

Reference

See Loan / Exchange Purchase Order - Receipt.

Accounting rules for PP15: Put away

Rule D/C Name Description
PP15-280   Rounding-off  
PP15-901   Quantity difference Represents the profit and loss account for the difference in quantity.
PP15-903   Fictive inventory, non-inventory Used for non-inventory items.
PP15-910   Inventory Represents the inventory accounting price of the item. Only used for inventory items.

PP20: Matching Supplier Invoices

When applied

Account entries are created when a supplier's invoice is matched to one or more purchase order lines in 'Supplier Invoice. Match GR Line' (APS360).

Reference

See Matching Supplier Invoices to Purchase Orders.

Accounting rules for PP20: Matching supplier invoices

Rule D/C Name Description
PP20-215 D Clearing account Represents the default accounting string to use when selecting predefined accounting option 17 in 'Supplier Invoice. Match GR Line' (APS360).
PP20-225 D Received, not invoiced: Item

Represents the offset account to accounting rule PP10-225. Accounting information type 10.

This accounting rule is only used if one of the following alternatives is selected in the 065-'Create account entries at goods receipt' field in 'Settings - Cost Accounting' (CAS900/E):

  • 4 = Create account entries for accounting event PP20 or PP35 to offset the PP10 account entries.
  • 5 = Same as alternative 4 but also updates the general ledger.
  • With alternatives 2 and 3, the original accounting string from the goods receipt is used instead.
Note: To be able to use 'Purchase Order. Print Rcvd/Not Invoiced' (APS580), all accounting rules with accounting type 225 must be identical in all seven accounting dimensions.
PP20-226 D Received, not invoiced: Line charge

Represents the offset account to accounting rule PP10-226. Accounting information type 20.

Note: To be able to use 'Purchase Order. Print Rcvd/Not Invoiced' (APS580), all accounting rules with accounting type 226 must be identical in all seven accounting dimensions.
PP20-227   Price difference: Item Represents the difference between the received cost and the invoice price. Accounting information type 12. This accounting rule is not used for average-costed items, that is, items with inventory accounting method 2.
PP20-228   Price difference: Line charge Represents the difference between the received cost and the invoice price. Accounting information type 21. This accounting rule is not used for average-costed items.
PP20-229   Additional cost: Item Represents the amount specified as an additional cost in 'Supplier Invoice. Match GR Line' (APS360). Accounting information type 13.
PP20-230 D Charges on invoice header Represents external charges on the invoice header level. Accounting information type 30. A prerequisite is that charge type 2 (External) and distribution method 2 are selected for the costing element representing the charge in 'Costing Element. Open' (PPS280).
PP20-235 D Invoiced, not received: Item Represents the invoice net amount for invoice lines with line type 2 (Invoiced, not goods received). Accounting information type 50.
PP20-236 D Invoiced not received: Line charge Represents the invoice net amount for invoice line charges with line type 2 (Invoiced, not goods received). Accounting information type 51.
PP20-237   Debit note not invoiced: Item Represents the amount for a debit note per invoice line. Debit notes are created based on a standard document with standard document type 1 (Debit note). Accounting information type 70.
PP20-238   Debit note not invoiced: Line charge Represents the charge amount for a debit note. Accounting information type 71. See comment to PP20-237.
PP20-240   Auto-accounted variance Represents the total variance between the invoice amount and the amount of the goods received for the purchase order. Accounting information type 60. Only used when next manual step 8 (Invoice matching completely automated) is selected for an invoice in 'Supplier Invoice. Record' (APS100/E).
PP20-243   Debit note request - Item Represents the amount for a debit note request per invoice line. Debit note requests are created based on a standard document with standard document type 2 (Debit note request) when 'Debit Note Request Accounting' is activated. Accounting information type 74.
PP20-244   Debit note request - Charge Represents the charge amount for a debit note request. See comment to PP20-243. Accounting information type 75.
PP20-248   Eco-contribution offset Represents the offset account to accounting rule PP20-249. The invoice line charge net amount. Accounting information type 45. Only used when line charge has charge category 01-'Eco-charge' in (PPS280)
PP20-249   Eco-contribution Represents the invoice line charge net amount. Accounting information type 46. Only used when line charge has charge category 01-'Eco-charge' in (PPS280)
PP20-270   Price difference Represents the part of the difference between received cost and invoice price that is not covered by stock still on-hand. Accounting information types 14 and 17. See accounting rule PP20-910. Only used for average-costed items.
PP20-280   Rounding-off Represents the rounding-off when an amount in foreign currency is converted into local currency.
PP20-301 C Realized exchange rate gain Represents any capital gain due to different exchange rates between goods receipt and invoice matching. Accounting information type 15.
PP20-302 D Realized exchange rate loss As above, but refers to capital loss instead. Accounting information type 15.
PP20-903 D Expense

Represents the invoice net amount. Only used for items with inventory accounting method 5 (Simplified purchasing) such as office supply, and for actual-costed rental equipment registered as fixed assets. In the latter case, it represents the cost of the item and the charges. No account entries are created at goods receipt. Instead, the expense account entry is created based on this accounting rule during invoice matching. The accounting string for this accounting rule is proposed when a purchase order is created but can be changed manually for the specific order. The account entry can be manually created when you press F11 in 'Purchase Order. Open Lines' (PPS201).

If a rental division uses the functionality for automatic registration of equipment as fixed assets, as described in Automatic Registration of Equipment as a Fixed Asset at Goods Receipt, then the account selected for this accounting rule must be a fixed asset account in order to update the acquisition cost of the asset.

PP20-905   Fixed asset not invoiced - total Used in rental divisions when equipment is automatically registered as fixed assets at goods receipt. The account cannot be a fixed asset account.
PP20-910   Inventory Represents the part of the difference between received cost and invoice price that is covered by stock still on-hand. Accounting information types 11, 16 and 19. See accounting rule PP20-270. Only used for average-costed items, that is, items with inventory accounting method 2.
PP20-952 D Received invoice price Represents the total price on the invoice. Accounting information type 40. Only used in periodic accounting, that is, if alternative 2 is selected in the '010 Inventory system' field in 'Settings - Cost Accounting' (CAS900/E).
PP20-953 C Control account received invoice price Represents the offset account to the invoice price. Only used in periodic accounting (see above).
PP20-956   Catch weight difference Represents any difference that occurs due to a difference between catch weight and units. Accounting information type 16.

PP25: Invoice Completion

When applied

The basis for the account entries is created when invoicing is completed for a purchase order even if the invoiced quantity does not equal the received quantity. This is done by selecting option 'Invoice completed' or pressing F14 in 'Purchase Order. Reconcile Received/Not Invoiced' (APS370). The actual account entries are created in 'Internal Account Entry. Create' (CAS950).

Reference

See Matching Supplier Invoices to Purchase Orders.

Accounting rules for PP25: Invoice completion

Rule D/C Name Description
PP25-225   Received, not invoiced: Item Represents the offset account to accounting rule PP10-225. The same prerequisites stated for PP20-225 apply.
PP25-226   Received, not invoiced: Line charge Represents the offset account to accounting rule PP10-226. The same prerequisites stated for PP20-225 apply.
PP25-227   Price difference: Item Represents the difference in value of the item due to difference in quantity.
PP25-228   Price difference: Line charge Represents the difference in value of the line charges due to difference in quantities.
PP25-280   Rounding-off  

PP30: Put Away Work In Progress to Stock

When applied

The basis for the account entries is created when goods are received based on a purchase order in 'Purchase Order. Receive Goods' (PPS300). A prerequisite is that subcontracting without manufacturing is defined for the item, that is, item category 3 (Subcontracting) is selected for the item in 'Item. Open' (MMS001/G). The actual account entries are created in 'Internal Account Entry. Create' (CAS950).

Reference

See Managing Subcontracting in Procurement.

Accounting rules for PP30: Put away work in progress to stock

Rule D/C Name Description
PP30-280   Rounding-off  
PP30-910 D Inventory Represents the inventory accounting price of the finished product.
PP30-912 C Work in progress: Material Represents the reported cost for material, that is, the cost corresponding to costing components A01–A05 in the product costing model used for the item.
PP30-920 C Work in progress: Work performed Represents the reported cost for operations, that is, the cost corresponding to costing components B01–D02 in the product costing model used for the item.
PP30-922 C Cumulative overhead: Product Represents product overhead costs, that is, the cost corresponding to costing components E01–E10 in the product costing model used for the item.
PP30-951   Delivered/not invoiced  

PP35: Purchase Order Claims

When applied

The basis for the account entries is created when a requisition order issue that is connected to a purchase order claim is reported in 'Picking List. Report' (MWS420). The actual account entries are created in 'Internal Account Entry. Create' (CAS950).

Reference

See Manage Purchase Order Claims.

Accounting rules for PP35: Purchase order claims

Rule D/C Name Description
PP35-225 D Goods received/not invoiced: Item

Represents the price on the purchase order.

Note: To be able to use 'Purchase Order. Print Rcvd/Not Invoiced' (APS580), all accounting rules with accounting type 225 and 226 must be identical in all seven accounting dimensions.
PP35-226 D Goods received/not invoiced: Line charge

Represents one external line charge in the purchase costing model connected to the purchase order in 'Purchase Order. Connect Charges' (PPS215). A prerequisite is that charge type 2 (External) and distribution method 1 or 3 are selected for the costing element representing the charge in 'Costing Element. Open' (PPS280).

Note: To be able to use 'Purchase Order. Print Rcvd/Not Invoiced' (APS580), all accounting rules with accounting type 225 and 226 must be identical in all seven accounting dimensions.
PP35-227   Price variance: Item

Represents the inventory value of the item. The difference between the net total value of the purchase order line and the inventory value. Only created when:.

  • The 075 check box is selected in (CAS900)
  • The item is standard-costed.
PP35-228   Price variance: Charge

Represents the inventory value of the charge, that is, the difference between the purchase order line charge and the charge according to the inventory cost. Only created when:

  • The 075 check box is selected in (CAS900)
  • The item is standard-costed.
PP35-243   Debit note request - Item Represents the amount for a credit request transaction per item line. Credit request transactions are created for a PO claim if 'credit to issue' is selected in (PPS390) and parameter 090 is selected in (CAS900).
PP35-244   Debit note request - Charge Represents the amount for a credit request transaction per external charge. Credit request transactions are created for a PO claim if ‘credit to issue’ is selected in (PPS390) and parameter 090 is selected in (CAS900).
PP35-251 D Internal line charges Represents one internal line charge in the purchase costing model connected to the purchase order in 'Purchase Order. Connect Charges' (PPS215). A prerequisite is that charge type 1 (Internal) and distribution method 1 or 3 are selected for the costing element representing the charge in 'Costing Element. Open' (PPS280).
PP35-280   Rounding-off  
PP35-620 D Internal revenue Represents the internal price a facility has to pay when receiving goods ordered to another facility. Only used with MUC trigger is 1.
PP35-907   Offset account Represents the offset account. Only used with MUC trigger 1.
PP35-910 C Inventory Represents the inventory accounting price of the item. Only used for inventory items.
PP35-911   Purchase price difference Represents the difference between the net value of the purchase order and the inventory value.
PPS-952 D Received invoice price Represents the total price on the credit invoice. Only used in periodic accounting, that is, if alternative 2 is selected in the 010-'Inventory system' field in 'Settings - Cost Accounting' (CAS900/E).
PP35-953 C Control account received invoice price Represents the offset account to the invoice price. Only used in periodic accounting (see above).
PP35-971 C Cost of goods sold Represents the value of the goods in the facility which ordered the goods.

PP40: Stock Issues to Work In Progress

When applied

The basis for the account entries is created when a requisition order issue that is connected to a purchase order for subcontracting without a manufacturing order is reported in 'Picking List. Report' (MWS420). The actual account entries are created in 'Internal Account Entry. Create' (CAS950).

Reference

See Managing Subcontracting in Procurement.

Accounting rules for PP40: Stock issues to work in progress

Rule D/C Name Description
PP40-280   Rounding-off  
PP40-600   Claim against receiving facility Represents the internal transfer price.
PP40-610   Debt against delivering facility Represents the internal transfer price.
PP40-620   Internal revenue Represents the internal price a facility in one division has to pay for an item issued from a facility in another division. Only used with MUC triggers 1 and 2.
PP40-907   Offset account for stock transaction Represents the offset account to the inventory account. Only used with MUC trigger 1.
PP40-910   Inventory Represents the inventory accounting price of the issued item.
PP40-911   Purchase price difference Represents any difference between the internal transfer price and the standard cost in the manufacturing facility in the case where material is used from another facility. Only used with MUC triggers 1 and 2.
PP40-912   Work in progress: Material Represents the debit account entry for the material part of work in progress.
PP40-915   Cumulative material cost overhead Represents the recovery of material cost overhead (MCO).
PP40-971   Cost of goods sold Represents the value of the distributed goods in the delivering facility when using raw material belonging to another facility. Only used with MUC triggers 1 and 2.
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