Accounting Rules for PC - Product Costing

PC10: Inventory Cost Variances

When applied

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

The actual account entries are created in 'Internal Account Entry. Create' (CAS950).

References

See Calculation of Item Cost per Inventory Accounting Method.

See Managing M3 Product Costing.

Accounting rules for PC10: Inventory cost variances

Rule D/C Name Description
PC10-280   Rounding-off  
PC10-910   Inventory Represents the change in inventory value. Only used for inventory items.
PC10-928   Change in average cost

Represents the change in average cost for average-costed items, based on transactions created in the CRACTR table when approving a proposal for historic actual cost in 'Historic Actual Cost. Calculate' (CAS400). See

Calculating Historic Actual Costs

PC10-931   Standard cost change Represents the change in standard cost for items with inventory accounting method 1 (Standard cost) or 3 (Dynamic product cost).
PC10-932   Average cost change Represents the change in average cost for items with inventory accounting method 2.
PC10-933   Actual cost change Represents the change in actual cost for items with inventory accounting method 4.

PC20: Transfer Product Costing to Budget

When applied

Internal account entries are created when 'Costing Total. Transfer to BUD' (PCS490) is run. The sole purpose of the account entries is to update an internal budget for cost of goods sold with values that have been calculated using a product costing model. This procedure is part of closed circle budgeting (also called closed budget loop).

Accounting rules for PC20: Transfer product costing to budget

Rule D/C Name Description
PC20-915 C Cumulative material cost overhead Represents the material cost, that is, the cost of costing components A04–A05 in the product costing model. This accounting rule should be defined the same way as accounting rule PM10-915.
PC20-921 C Cumulative work in progress: Operation Represents the operation cost, that is, the cost of costing components B01–C02. This accounting rule should be defined the same way as accounting rule PM20-921.
PC20-922 C Cumulative overhead: Product Represents costs not related to material, labor, tools or subcontract, that is, the cost of costing components E01–E10. This accounting rule should be defined the same way as accounting rule PM30-922.

PC30: Budget Maintenance

When applied

Internal account entries are created in 'Maintenance Budget. Transfer to BUD' (PCS495). They are used the same way as the ones created in accounting event PC20 with the difference that they update a maintenance budget instead.

Accounting rules for PC30: Budget maintenance

Rule D/C Name Description
PC30-120   Sales revenues Represents the sales revenue. Only used if alternative 2 or 3 is selected in the 'Cost/revenue update' field in (PCS495/F).
PC30-912   Work in progress: Material Represents the material cost, that is, the cost of costing components A04–A05. Only used if alternative 1 or 3 is selected in the 'Cost/revenue update' field in 'Maintenance Budget. Transfer to BUD' (PCS495/F).
PC30-920   Work in progress: Work performed Represents the operation cost, that is, the cost of costing components B01–C02. Only used if alternative 1 or 3 is selected in the 'Cost/revenue update' field in (PCS495/F).
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