Kamal Ghosh
Member
Inventory Transfer:
Our client has activated the detailed product costing at various branch plants, and hence whenever there is a transfer of inventory from one branch plant to other branch plant. And if there is a cost difference in the item at two different branch plants, the stock account of the receiving branch plant gets debited with the variance amount.
Example:
This is an example of transfer of an item that costs less at one branch/plant than at another,
For example, an item number ‘1’ is transferred from Branch/Plant M30 to Branch/Plant D30.
The cost of item number ‘1’ in M30 is $30 and the stocking type is ‘M’.
The cost of Item number ‘1’ in D30 is $45 and stocking type is ‘M’
In the receiving branch plant detailed product costing in on.
If we transfer one unit of item 1 in M30, to D30
Automatic accounting instructions (AAIs) direct the cost variance to a G/L account.
This transfer creates a credit of $30 to Branch/Plant M30,
A debit of $45 to Branch/Plant d30, and
A standard cost variance of $ 15, into the variance account, through AAI 4141.
The result of the test shows that the first three steps happen exactly the same, but a debit entry of the amount same as variance amount goes into the stock account of the receiving branch plant.
The above example is simulated in Demo version, yielding similar result. The same problem exists in their live environment, as well as their test environment.
If we transfer the same with deactivated detailed product costing the variance entry goes perfectly, & no extra entry goes in either of the accounts of receiving or transfer branch plant.
Is there any extra set up required, an urgent help expected.
Thanks in advance
Kamal Ghosh
[frown]
Our client has activated the detailed product costing at various branch plants, and hence whenever there is a transfer of inventory from one branch plant to other branch plant. And if there is a cost difference in the item at two different branch plants, the stock account of the receiving branch plant gets debited with the variance amount.
Example:
This is an example of transfer of an item that costs less at one branch/plant than at another,
For example, an item number ‘1’ is transferred from Branch/Plant M30 to Branch/Plant D30.
The cost of item number ‘1’ in M30 is $30 and the stocking type is ‘M’.
The cost of Item number ‘1’ in D30 is $45 and stocking type is ‘M’
In the receiving branch plant detailed product costing in on.
If we transfer one unit of item 1 in M30, to D30
Automatic accounting instructions (AAIs) direct the cost variance to a G/L account.
This transfer creates a credit of $30 to Branch/Plant M30,
A debit of $45 to Branch/Plant d30, and
A standard cost variance of $ 15, into the variance account, through AAI 4141.
The result of the test shows that the first three steps happen exactly the same, but a debit entry of the amount same as variance amount goes into the stock account of the receiving branch plant.
The above example is simulated in Demo version, yielding similar result. The same problem exists in their live environment, as well as their test environment.
If we transfer the same with deactivated detailed product costing the variance entry goes perfectly, & no extra entry goes in either of the accounts of receiving or transfer branch plant.
Is there any extra set up required, an urgent help expected.
Thanks in advance
Kamal Ghosh
[frown]