How to treat the accounting entries for the Process industry?

Question

Hi SAP Gurus,
I am working with the Process industry client. Here one raw material goes with chain of process. In one plant half of the process will carried out and the rest of the half process would be carried in another plant. the entire accounting entry would be as follow.
Plat A
While Purchasing the RAW material the account entries are
Raw material Inventory A a/c     Dr
     To GR/IR a/c                Cr
While issuing material to process order
Consumption  a/c      Dr
     To Raw material A inventory   A/c      Cr
While the FG receipt into the stock
FG B inventory      a/c     Dr
     To COGM   a/c      Cr
Stock Transfer from Plant A to Plant B
Goods issue from Plant A
Goods in Transit   a/c        Dr
To FG B inventory      a/c     Cr
Plant B
Goods Receipt at Plant B
FG B inventory a/c      Dr
     To Goods in Transit a/c      Cr
While issuing Goods to process order
Consumption a/c      Dr
     To FG B inventory a/c     Cr     
While Final FG receipt
FG C  inventory a/c Dr
     To COGM a/c          Cr
In this case mine consumption account gets hitted two times. One at Plant A and another at Plant B. So in my P&L account the consumption will be in two times. In this case how should i treat the accounting entry??
Advance thanks for the help.
Regards,
Deva

Answer 1

Hi Ravi,
I have discussed with my user. The business requirement is they want the plant wise Balancesheet and Financial statement. If i do the stock transfer from one plant to another it is very difficult for me to get the balance sheet. What we are planning is while transfering one plant to another the FG invertory credit agaist Intra transfer account (One P&L account) then in the receiving end the intra transfer a/c debit to FG inventory so that i can get the trial balance.
I will get back to you once i get the solution for this. Let me know if you have some idea on this.
Thank you.
Deva.