Inventory adjustment debitign to cost center

Hi Experts,
1. When the users do physical stock adjustment in MI07, a financial entry is being passed. My doubt is where should this entry go and sit in the controlling module? The obvious answer is cost center but i want to know which cost center is used as a best practice or what is the best practice as far as this activity is concerned?
Entry (in case of physical shortage) is
Inventory Adjustment Dr
Inventory Cr
2. Similarly when goods are issued to for subcontracting and when received from sub contracting what are the cost center/ controlling module entries as a best practice? If cost center is used, which cost center?
Best Regards
Vimal

Hi
What Cost center should be used for Inventory diff- Depends on who lost it
If lost while stored in the stores - Stores dept should beatr the cost
If lost by Production dept - Then it must be borne by them
However, depending on the orgnanizaion, you can charge all to one CC
For Sub Con - You can created a separate CC for Sub Con purposes in case you use the GL Accounts in GBB VBR
If you decide to use new set of GL accts in BSV, you need not create them as Cost ele and in that case you dont need a CC... GBB VBR is used for Sub Con if BSV is not maintained
Ajay M

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Inventory Difference Posting to Cost Center

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I have requirements like this.
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I have a requirements that the cost center is determined by the Storage Location where the inventory counting exists, how can I do that.Right now the cost center is set to default in the COA master.
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Determination of cost center based on storage location can be acheived using a Customer enhancement in posting of accounting document.
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Kishore

Physical Inventory Post difference to a diff Cost Center

HI
I am posting a Physical inventory difference using MI07
Based on the plant i want to post to different Cost Center, is there a way that i can manually provide a cost center in MI07
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Thanks

OSS note 13423 says:
No account assignment can be entered when posting inventory
discrepancies.
Cause and prerequisites
This function is not implemented.
Solution
In Customizing an account assignment can be made for every inventory
adjustment account. To do this the inventory adjustment account must
first be defined as a cost element (Transaction KA01 / KA06):
Accounting -> Controlling -> Cost centers -> Master data -> Cost element
-> Create primary / secondary. Then an account assignment can be made
for the cost element (Transaction OKB9):
Tools -> Customizing -> Setup menu -> Accounting -> Controlling -> Cost
centers -> Actual postings -> Automatic account assignment.
If this account assignment is implemented every posting to the
particular inventory adjustment account will automatically receive the
appropriate account assignment.

Select cost center for physical inventory difference posting

Hello,
While posting physical inventory differences (transactions MI07 or MI10) the choice of cost center is not offered. A default cost center is used by the system.
Is there a way to choose the cost center for inventory difference postings? This is useful considering we have several inventories managed by several business units with different cost centers.
Kind regards,
Sergei Volkov

this is from OSS note 13423:
Symptom
Key word: Inv acct assign
No account assignment can be entered when posting inventory
discrepancies.
Additional key words
MI07
Cause and prerequisites
This function is not implemented.
Solution
In Customizing an account assignment can be made for every inventory
adjustment account. To do this the inventory adjustment account must
first be defined as a cost element (Transaction KA01 / KA06):
Accounting -> Controlling -> Cost centers -> Master data -> Cost element
-> Create primary / secondary. Then an account assignment can be made
for the cost element (Transaction OKB9):
Tools -> Customizing -> Setup menu -> Accounting -> Controlling -> Cost
centers -> Actual postings -> Automatic account assignment.
If this account assignment is implemented every posting to the
particular inventory adjustment account will automatically receive the
appropriate account assignment.

Product costing and cost center

Hi,
My client is a trading organisation. In order to do product costing, at which point in sourcing we need to enter the cost center.
M.K

Hi MK,
In a trading organization, usually you do not need product costing as you are not manufacturing the product in-house.
You can value your Inventory at MAP and when you do MIGO, the MAP will get adjusted itself with different p.O.rates that you purchase.
And, even if you go for Product costing, you won't need Cost Center at any point of time for sourcing.
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Kavita

Cost Center and Profit Center in Sales Order and Deliveries.

What are the different methods of determining cost centers and Profit centers in Sales orders ?
Can Cost Center be determined independently in sales order or will be detrmined from Profit center ?

Hi Sunil
Profit Centres are used primarily in S&D (at billing stage it is transferred to FI) for registering revenue.
Billing -
Integration Points Module
Debit A/R - FI/ CO
Credit Revenue - FI/ CO
Updates G/ L - FI/ CO
(Tax, discounts, surcharges, etc.)
Return Delivery & Credit Memo -
Integration Points Module
Increases Inventory - MM
Updates G/ L - FI
Credit Memo - FI
Adjustment to A/R - FI
Reduces Revenue - FI
Profit Centers can be set-up to identify product lines, divisions, geographical regions, offices, production sites or by functions. Profit Centers are used for Internal Control purposes enabling management the ability to review areas of responsibility within their organization.
The difference between a Cost Center and a Profit Center is that the Cost Center represents individual costs incurred during a given period and Profit Centers contain the balances of costs and revenues.
Regards

HR PNP Logical Database Using Cost Center selection: error!?

Hi all,
I'm using PNP logical data base and using the selection-fields available through HR Class Reports (a copy of PAY_DEF) but what happens is if in selection-screen I fill the personnel number say 1000, i get the payroll data I'm trying to get, but if i use the search field cost center of that exact person i get nothing. Does anyone has a clue on what i might be doing wrong? Because all the other search fields work, company code, HR area, everyone, but cost center, and I'm positive that i use the right cost center.
Thanks in advance,
Paula

Even though nobody answered me, i finally found the solution for my problem. so and because someone might need it here it is:
Go to Spro->Personnel Management->Human Resources Information System->Reporting->Adjusting the Standard Selection Screen and then:
1st Create Report Categories and
2nd Assign Report Categories
Since not all rep. categories on the 1st assignment is explicit on how will sel screen appear i advice you to go to the 2nd point, and execute some of the programs that appear there, and that might look alike to what you are looking for, and if you are so lucky as to find one exact use the same report category in your program, if its very alike, well, copy the Report Category into one of your own and change it the way you need it to be.
Hope this be helpfull for someone.
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Hide/Suppress Cost center field in MIGO and MB1A for movement types 551&552

Hi All,
Can anybody tell me how to suppress or hide the cost center field in MIGO or MB1A for movement types 551 and 552?
I did below settings and it worked fine for only MB1A and for MIGO still it is showing cost center field.
IMG > Materials Management > Inventory Management and Physical Inventory >Goods Issue/Transfer posting > Define screen layout > select movement type to change the option.
Also I did gothrough the settings for Enjoy transaction (MIGO) there we have only option to make fields either "Required entry" or "Optional entry" and we don't have an option to hide/suppress.
Please advise or help me .
Thanks in advance!
Regards,
Praveen

Hi
The cost center field is a required field in mvt type 551 as you are scrapping materials, some cost center will need to take the cost of this operation.
Anyway, you first need to make the field as optional for example, before you move.
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regards
Sidi

COST CENTER WISE STOCK

Dear cons
WE WANT TO CHECK COST CENTERWISE STOCK. PL. SOLVE IT.
EXAMPLE- in T-CODE- MMBE WE CAN CHECK project stock i.e- under which WBS THE STOCK BELONGS. we want in same manner under which cost center the stock belong.
nrk

Not sure abut MMBE,but u can do it for MB51.
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Change to cost center in time dependent data. Can I rerun depreciation YTD?

I need to change the cost center in October (Period 10) Period 9 and prior are already closed. I thought that since I put the Interval for the new cost center as 1/1/11 that it might do and adjustment in October reversing the depreciation posted for the old cost center and put the YTD depreciation in the new cost center, but it did not. it only posted the current month depreciation to the new cost center. Is there any way to do this? Thank you very much.

Hi. Thanks for your reply. I went into the ABAA screen, but I am afraid to process this transaction because I do not understand what is going to happen. I cannot find any documentation that explains this. I have already changed the cost center on the asset and run depreciation. It posted the current month depreciation to the new cost center, but it did not make a correction to the prior periods. I am not creating a new asset, i just want to reclass the prior months depreciation (in the current year) to the new cost center. In case it will help I provide some details:
Asset acquired 5/1/11 Depreciation posted to Cost Center A From May - Sept $1,796.06 per month x 5 = $8,980.30
Before posting Oct depreciation, I went to Master Data - Time Dependent - and changed the cost center as of 1/1/11. So I now have two intervals: From 1/1/1900-Cost Center A, and From 1/1/11 - Cost Center B. I then ran the regular depreciation for Oct. It posted Oct Depreciation of $1,796.06 to the new Cost Center-Cost Center B. My total YTD depreciation is now $10,776.36, but it is split between two cost centers. I need to move the depreciation from Cost Center A to Cost Center B for the prior months. If it was a Journal Entry, I would do it as follows in the month of October, so my YTD numbers would be correct.
Debit Depreciation Cost Center B $8,980.30
Credit Depreciation Cost Center A $8,980.30
Then when I run my October numbers it would show zero depreciation in Cost Center A Year To Date (and negative 8,980.30 in month of October)
If i follow the steps you propose, what would be the result? Thanks so much!

Cost Center value

Hi all
Can any one explain me one thing in same connection of cost center
At what time cost is captured at cost center in the below flow, please correct me if I am wrong
At the time of GR
Material A/C Dr
To GR/IR
At the time of IR
GR/IR Ac Dr
To vendor
Issue material to production order
Material Consumed
To Material
Received from Production order
Finish Good Inventory A/c Dr
To cost of finish good cr
At the time of PGI
COGS
Finish Good Inventory
At time of billing
Customer A/C Dr
To Revenue
Now at what level cost center is effected im not able to understand.
Please clear my doubt. because in every place i find orders (in purchase and sales order).
If i see cost center report i will not find any value related to above.
Thanks in advance
Shyam

Thanks for reply,
as you told that Cost Centers are normally used for Overhead cost management, while direct material costs in production environment do not flow via Cost Centers.
So can you please tell me what is difference beteween Cost center and order, as both are use for capturing costs
Regards
Shayam
Edited by: Shayam_210 on Oct 20, 2009 12:36 PM

Return material from cost center

Dear All,
Return material from cost center:- xx, Material:- yyy qty z Pc in inventory. create sales order for delivery.
They are materiel in prototype in R&D for customer loan
What is the Process that has to be follows in SAP for this can some explain.
sapuser

hi
is it possible do more description
regards
R.T

Regarding Change in Cost Center after Advance payment

Hi,
PO is created, against that PO Advance payment is given and payment is given to Vendor of advance.
Now query is that the while generating PO wrong cost center is entered, and user want to change that.
How we can solve this problem ?
Regards,
Akshata

Hi,
You cannot change the cost center in down payment entry, but can be changed in PO.
Then again you have to use KB61 to do transfer posting from one cost center to another, since this will only post an internal CO ducment to adjust the balances from one cost center to another, assuming that CO update for Controlling is active in your system.
Use down payment accounting document no in KB61.
Regardz,
Srinu

OLMRLIST screen how to fix the cost center tab and its impact?

Hi
Explain the function of the T-Code OLMRLIST.
How does it interact with the MIRO T-Code?
What is the significance of a field check box being checked in OLMRLIST. I particularly want to know about the Cost center field.
Raja

OLMRLIST is used to adjust teh screen variant for the MIRO screen. At the line item level you see layouts and each layout has a set of fields in the form of columns. These are adjusted via the screen layout variants in OLMRLIST like 7_6310 which is all information and like wise you have 6_6310, etc...

Process order settlement to cost center

Hi,
We have a requirement to settle only the quantity to material and the costs to
cost center from the process orders. This is to ensure the materials are
handled as non-valuated and the COGM is computed from the goods consumption
postings.
The process orders will have both co products and by products as well.
There is also one more requirement to allow Purchase orders against the non-
valuated materials.
I am planning to propose the following :-
1) To make the materials valuated but set the standard price to zero to give
the effect of non-valuated materials and at the same time can also raise
purchase orders because otherwise non-valuated materials cannot be used to
raise Purchase orders.
2) When goods receipt happens from the process order the actual costs of the
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price of the FG is zero and only the quantity will be received into inventory.
3) When process order settlement happens the full actual costs will be settled
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account.
Do you guys see any flaws in the above design?
Edited by: FICO Consultant on Feb 21, 2012 4:28 AM

Answered

Inventory adjustment debitign to cost center

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