Accounting Rules for PC - Product Costing
PC10: Inventory Cost Variances
When applied
The basis for the account entries is created in these situations:
- The inventory value of an average-costed item, an item with inventory accounting method 2, is changed in 'Average Cost. Enter per Item/Facility' (CAS370) or 'Average Cost. Display/Update History' (CAS371).
- The inventory value of a standard-costed item, an item with inventory accounting method 1 or 3, is changed per the current date in 'Product Costing. Update Manually' (PCS260) or in any of the other programs for costing calculation listed in .
- The inventory value of an actual-costed item, an item with inventory accounting method 4, is changed in 'Product Costing. Update Manually' (PCS260).
The actual account entries are created in 'Internal Account Entry. Create' (CAS950).
References
See .
See .
Accounting rules for PC10: Inventory cost variances
This table shows the accounting rules for 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
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| 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. | |
| PC10-934 | FIFO cost change | Represents the change in FIFO cost for items with inventory accounting method 6. |
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
This tables shows the accounting rules for 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
This table shows the accounting rules for 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). |