Cost aspects of paybacks

The borrowed inventory is paid back at the value at which it was borrowed.

The borrowed and loaned inventory has no impact on the project costs. For the lending project, the loaned inventory is returned at the original value. For the borrowing project, the difference between the payback value and the replenishment value is posted to the Project Costs & Commitments/WIP Costs and not to the project costs. Borrow/loan and payback transfers are non-billable transactions.

Example

The inventory valuation method is MAUC by project.

Project A had borrowed four items from project B at a value of 10 each. The borrowed items have meanwhile been issued to fulfill a job shop requirement, so there is no inventory left. Then, project A is replenished with four items. The items have become more expensive: the value per item is now 30. After replenishment, the inventory value of project A is 4 * 30 = 120. The payback transfer is then carried out. The borrowed items are returned to project B at the value 40, which equals the value at which the items were borrowed. The inventory of project A becomes 0. The difference between the replenishment value and the payback value (120-40=80) are booked at the Project Costs & Commitments/WIP Costs of project A.

For the lending project, the result of the payback is that the total inventory value and the value per item are the same again as before the inventory was loaned.