Accounts in PGI and Billing

Question

Hi Gurus,
As we know, there are accounting documents generated when PGI and Billing doc created.
I just like to clarify the difference between these 2 types of accounts.
Am I right to say:
1. When PGI, its Inventory accounting and the postings involved is not the same as that when Billing doc is created and postings released to FI. Both posts to FI however. But the GL accounts are different.
2. For both situations, the CO-PA docs are posted to the same account of COGS.
3. Material Doc is posted only when PGI and not when Billing doc is released to FI.
Question:
1. Can I know if the GL accounts involved in the 2 processes are different, what are the gl accounts invovled for Inventory accounting?
regards
M Russo

Answer 1

Hi,
Post goods issue is the process where the material movement happens. Whenever a material movement happens, a material document is created. To update the inventory (stock value), a FI document also created when we do PGI.
Creation of the billing document is like a debit note that is sent to the customer to pay for the material supplied. So, the customer account and the sales accounts are updated.
PGI and Billing are different processes; the corresponding GL accounts are also different.
You can trace the GL accounts involved in PGI. If you know the material document number and year of the transaction, enter the values in transaction MB03. Click the u2018Accounting Documentsu2019 button. Click on u2018Accounting documentsu2019; you will get the GL accounts for this particular transaction. These GL Account numbers are set by transaction OBYC.
Example:
While doing PGI, Trading Account (310000) is credited for $100 ie)  -$100
Inventory change account (894025) is debited for $100 ie)  +$100
While doing Billing, Sales revenue account (800000) is credited for $175 ie) -$175
Customer account (1360) is debited for $175 ie)  +$175
The difference in value ($75) between PGI and Billing shows the profit margin. The material valuated for $100 is sold to the customer at $175.
Hope this information will be useful to understand PGI and Billing.
Regards,
K Bharathi