Using Sales Order Cost Estimate in Goods Movement for Finished Goods

Objective

After completing this lesson, you will be able to confirm a partial delivery of a sales order for a production order

Document Flow Production

The image is a diagram illustrating the material requirements planning process in an ERP system. It shows the different components involved, including sales orders, production orders, inventory management, cost tracking, and financial postings related to customers, inventory valuation, and revenue recognition.

For the valuated sales order stock, the goods issue for the individual requirements raw material debits the production order with a consumption posting. The stock is reduced correspondingly. Financial Accounting (FI) generates the usual posting record for goods issues, but with special accounts for the sales order or project stock, where applicable.

Goods Receipt Semi-Finished Material

The image depicts a production order cost estimate workflow, showing the planned and actual costs for an order along with the inventory quantity/valuation details. It also illustrates the impact on inventory, expense, credit, and sales revenue using arrows connecting different elements. The overall layout presents a systematic approach to tracking and analyzing production orders and their financial implications.

During goods issue for the semifinished product, the production order is credited and new sales order or project stock is formed.

Goods Issue – Components of Finished Goods

The image illustrates the flow of a production order process, showing the planned and actual costs for labor and materials. It depicts how inventory quantities and valuations are updated, impacting expenses, credits, customers, and sales revenue when an order is fulfilled.

The goods issue for the semi-finished individual requirements product debits the production order with the value in the sales order stock. The sales order or project stock is reduced accordingly.

The goods issue for a collective requirements component of the finished product also debits the product order. If the price control indicator of the material is set to S, the production order is debited with the standard price, which is the result of the material cost estimate. If the price control indicator is set to V, the production order is debited with the current moving average price.

Goods Receipt Finished Good

The image illustrates the flow and valuation of inventory, costs, and revenue for a production order using a production order cost estimate strategy. It shows the planned and actual costs for semi-finished goods, raw materials, and activities, as well as the quantity and valuation of inventory items.

During goods issue of the finished product in the sales order or the project stock, the production order is credited and new sales order or project valuated stock will be created. The value is determined by the valuation strategy, which has the following priorities:

User-exit, if existing
Marked Cost Estimate of the sales order item
Plan Costs of production order
Material Cost Estimate (S - Price)

Document Flow Delivery to Customer

The image depicts a flowchart illustrating the cost object 7000/10 involving a forklift delivery. It shows the planned and actual revenue, costs, as well as the impact on inventory, customers, credit, and sales revenue. The inventory quantities and values for forklift, semi, raw materials, and raw components are also displayed.

The sales order item is debited when the product is delivered to the customer. The cost of sales is transferred to FI with the goods issue posting. The sales order or project stock is reduced accordingly.

Confirm Assembly, Partially Confirm and Deliver Finished Product

ExerciseStart Exercise

Summary

Goods issue for raw materials debits the production order and reduces the stock.
Goods receipt for semi-finished goods credits the production order and creates a new sales order stock segment.
Goods issue for semi-finished goods components debits the production order based on price control indicators and the sales order stock is reduced.
Finished goods receipt credits the production order with a price determined by the valuation strategy and a new sales order stock segment is created.
Delivery to the customer reduces the sales order stock, debits the sales order item and transfers cost of sales to Financial Accounting with the goods issue posting.

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