Accounting (FICO) Journal of MM Goods Issue, Transfer Posting, and Physical Inventory Difference Transactions




Goods Issue(GI)
T-Code used: MIGO or MB1A.

The Goods Issue transaction will trigger cost accounting process. Cost accounting will record the expense occurred from the goods issue transaction whether it will be charged to cost center, cost of goods sold, or other objects.

The required field that must be filled in all Goods Issue process:

  • Material number which will be issued
  • Quantity issued
  • Plant from where the material issued
  • Storage location from where the material issued

A goods issue leads to a reduction in inventories stock.

  • GI to cost center (movement type: 201)
    The additional required field: Cost center number.
    The typical accounting journal is:
Inventory account

Material consumption
expense account

1000(CR)

1000(DR)






 

  • GI to Sales Order (movement type: 231)
    The additional required field: Sales Order number.
    The typical accounting journal is:

    Inventory account

    Cost of Goods Sold
    account

    1000(CR)

    1000(DR)






    After the sales processed, usually the finance department will bill (invoice) the customer (using SD Module T-Code: VF01), the typical accounting journal for this billing process is:

    Customer account (Account Receivable)

    Revenue from sales
    1000(DR)



    1000(CR)





  • GI to Order (movement type: 261)
    The additional required field: Order number.
    The typical accounting journal is:

    Inventory account

    Material consumption
    expense account

    1000(CR)

    1000(DR)






  • GI for sales (movement type: 251)
    The additional required field: Cost Center.
    The typical accounting journal is:

    Inventory account

    Material consumption
    expense account

    1000(CR)

    1000(DR)






  • GI to asset (movement type: 241)
    The additional required field: Asset number.
    The typical accounting journal is:

    Inventory account

    Fixed asset account

    1000(CR)

    1000(DR)






  • GI for scrapping (movement type: 551)
    The typical accounting journal is:

    Inventory account

    Material scrapping
    expense account

    1000(CR)

    1000(DR)






 

Transfer material to material (movement type: 309)
T-Code used: MB1B
The receiving and supplying materials might be had same valuation class, that is, same inventory G/L account, or different valuation class, that is, different inventory G/L account.
The typical accounting journal is:

Inventory account
(receiving mat)

Inventory account
(supplying mat)
1000(DR)



1000(CR)





Physical Inventory difference posting

  • GR for gain on physical inventory count (movement type: 701)
    The typical accounting journal is:
Inventory account

Other revenue account
1000(DR)



1000(CR)





 

  • GI for loss on physical inventory count (movement type: 702)
    The typical accounting journal is:

    Inventory account

    Other expense account

    1000(CR)

    1000(DR)






 

See Accounting Journals of SAP Material Management (MM) Transactions.


2 thoughts on “Accounting (FICO) Journal of MM Goods Issue, Transfer Posting, and Physical Inventory Difference Transactions

  1. GI to cost center (movement type: 201)
    The additional required field: Cost center number.
    The typical accounting journal is:(GIVEN HERE)
    Inventory account(DR)

    Material consumption
    expense account (CR)
    ————————————————–
    BUT it should be

    material consumption expence account/repair and maintenace acct– (DR)

    INVENTORY ACCT—(CR)

    just verify if i am right and comment.

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