Accounting entries as passed by EAM

Note:

The accounting code combinations are picked up automatically by the system, as

setup in the “WIP Accounting Class definition” & “Resource
definition”. (Screen shots are attached at the end)

The values in the brackets () in the following accounting entries indicate the
setup screen for the accounting entry.

Accounting for Issue and Return Transactions:

Components issued to or returned from jobs are valued at the inventory average
cost in effect at the time of the transaction.

Components issued to a job or returned from a job in several different

transactions may have different unit costs for each transaction. If a component's
unit cost is composed of more than one cost element, this elemental detail
continues to be visible after it is charged to a job.

For issue transactions:

Account Debit Credit

Repairs & Maintenance - Plant & Machinery XX -
(WIP Accounting Class (Material) Valuation a/c)
Stores – MRO (Inventory Organization) - XX

For return transactions:

Account Debit Credit

Stores – MRO (Inventory Organization) XX -
Repairs & Maintenance - Plant & Machinery - XX
(WIP Accounting Class (Material) Valuation a/c)
Accounting for Outside Processing Charges at actual Purchase Order
price:

The accounting transactions for outside processing charges at purchase order

price are:

For Purchase of the Services (Outside Processing Charges)

Account Debit Credit

Repairs & Maintenance - Outside Processing XX -
(WIP accounting class (Outside processing) valuation a/c)
AP Accrual a/c - XX
(Inventory Organization)

For Costing Resource Charges

For all the “Resource” transactions, where an employee is used for a job, system
passes an accounting entry on creating a transaction. This accounting entry is
picked up from ‘Resource” definition (Screen shot attached), at the “Resource”
cost set up.

This is a notional entry passed by the system at pre set cost, for arriving at the
Cost of the job.

The accounting entries for resource transactions are:

Account Debit Credit

Repairs & Maintenance – Resource XX -
(WIP accounting class resource valuation a/c)
Repairs & Maintenance – Resource - XX
(Resource absorption a/c)

Note: Department & Cost Centre for the debit item above will be as setup in the
WIP accounting class resource valuation a/c. However, the credit will have
constant department & cost centre, which may not match with debit values.
Costing Job Close Transactions:

Work in Process recognizes variances when you close a job. The close process
writes off the balances remaining in the WIP elemental valuation accounts to the
elemental variance accounts you defined by accounting class, leaving a zero
balance remaining in the closed job.

If there is a positive balance in the job at the end of the close, the accounting
entries for a job close are:

Account Debit Credit

All WIP accounting class Variance accounts XX -
All WIP accounting class Valuation accounts - XX
WIP Accounting Class Definition:

Resource Definition (Internal):

Resource Definition (Outside Processing):