I would like to monitor my work in progress using different accounting accounts (Raw materials, Consumables, Labour, Supplies, etc.).
When I set up the M40 with a C124 control type, for example, the accounting entry for consumption on a shop order is made correctly on the different accounts. However, when the shop order is closed, the system displays an M40 charge control error stating that it can't find a control type and the only way to resolve this error at the moment is to set up an account in the posting header in the ‘Val def no TC value’ field. This means that you will then have to make a manual accounting entry to balance the various WIP accounts.
Has anyone been able to find a control type for M40 that allows the work in progress to be tracked in detail on the same accounts when the shop order is issued and when the shop order is received?
Please find the expected diagram in the attachment.
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Hello @joel_solika
When you close the SO, the component parts does not have affect on the posting anymore. Because you are receiving the final product so posting will be based on the accounting group of the final product.
I think the only way to achieve what you want is to split the final product’s cost based on cost source.
Define your cost sources and match your sources with account groups under cost source indicators.
Setup the posting control and see if it generates the expected result for you.
Hope this helps
Furkan
Hi,
Along the same line as the above, consider the posting cost group as a control type. It may be easier than cost source.
@Furkan Zengin thanks. i’m trying and i will tell you if it works well!!
@Thomas Peterson thanks!! please can you show me how to set up cost group ?
Don’t do this in PROD. Test first. Ideally, set up a new site (for testing). Typically, this is something I would set up early in an implementation.
See the posting cost groups. You add your values such as material, labor, sub con, etc. Then to activate, go into modify posting cost groups where you then assign your posting cost groups to the various cost buckets. IFS will then essentially revalue the parts (not values) and assign posting cost groups to the parts cost buckets. This creates a number of inventory transactions in / out (net value change is 0 but the cost buckets for the parts get updated with the posting cost group. Now you can drive posting control based on the part cost group. See the parts cost detail, and note the cost buckets. Before the modify posting cost group function, the buckets would not have the posting cost group, After, you will see the changes.
You would test, analyze and then decide if that’s really what you want. In all likelihood you will get many more posting transactions as you had previously. For some this could be bad. For others, it’s exactly what they need.
Note, when you do the modify, IFS creates a number of postings, you will need to set up posting control for those postings to be successful. Just post to an account, these are in / out, so the net value is 0.
Best regards,
Thomas
@Furkan Zengin i made the setting of cost source and M40 with C90 but they don’t work at the issue of SHOP ORDER so also at closing.
this wrong account have been setting to prevent wrong issue
Hi
You need to buy the product with cost source. Produce a product with components that have cost source.
After each transaction, check if cost source is created in the cost detail of inventory transaction history. The cost source will be carried forward from components to final products.
@Furkan Zengin thank you for your time. i will try it and I'll get back to you.
@Furkan Zengin HELLO, i try it and it works well. thank you very much.
Hello @joel_solika
I am glad your issue is resolved. You can mark my first message as Best Answer so other community members benefit from the solution.
