This is because these accounts are already mapped during integration settings (i.e OBYC settings). Here, you donвЂ™t need to manually enter G/L accounts during goods issues to production order. Raw Material Inventory 100 Units => Raw Material Consumption 100 units => Production Order Raw Material Quantity 100 units Here is an example вЂ“ Goods issue Debit Production Order Then the system automatically chooses the production order or product cost collector as the cost object.ДЇurther, the system calculates the debit value by multiplying the standard price by the component quantity issued from inventory. This also automatically debit a profit and loss consumption account.ДЄ primary Cost Element with the same number as the inventory consumption account ensures that a parallel posting in controlling (CO) occurs at the same time as you issue components to production order. When you issue goods from inventory, you credit a General Ledger (G/L) balance sheet account. Goods movements to and from production orders result in debit or credit entries. These are majorly related to debit and credit entries in GL, handling of P&L, and also to the management of inventories. We have some important points under the process of Simultaneous Cost. WhatвЂ™s important in Simultaneous Costing?

Sap co product costing