TG Yoon
Member
Using stocking type \"S\" & 07 cost zero for tracking inventory for non-stock items
Hi all,
I am currtntly supporting an E1 implementation for a Korean customer. The customer wants to track inventory transactions of their equipment maintenance parts but does want to have the cost of purchase for the items debited as expense at the point of purchase.
My suggestion was to setup the standard costs for those items zero and have the AAI for the purchase price variance to point to the expense account. Thus, I wanted to have the system realize the expense at the point of purchase in the financial accounting system and let the customer track the inventory transactions of the no value items using item ledger.
But the accounting team of the customer company is saying that such practice is not normal.
In my opinion, it is OK as far as the financial accounting system has posted the expense at the point of purchase.
If anyone in the list has experiences liek this one, please let me know how you can defense this kind of use of standard cost of zero for non-stock items.
Besides, if anyone has any other good options, please let me know.
Thank you for your help in advance.
TG Yoon
[email protected]
Hi all,
I am currtntly supporting an E1 implementation for a Korean customer. The customer wants to track inventory transactions of their equipment maintenance parts but does want to have the cost of purchase for the items debited as expense at the point of purchase.
My suggestion was to setup the standard costs for those items zero and have the AAI for the purchase price variance to point to the expense account. Thus, I wanted to have the system realize the expense at the point of purchase in the financial accounting system and let the customer track the inventory transactions of the no value items using item ledger.
But the accounting team of the customer company is saying that such practice is not normal.
In my opinion, it is OK as far as the financial accounting system has posted the expense at the point of purchase.
If anyone in the list has experiences liek this one, please let me know how you can defense this kind of use of standard cost of zero for non-stock items.
Besides, if anyone has any other good options, please let me know.
Thank you for your help in advance.
TG Yoon
[email protected]