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Process Flow in Logistics

Actual costs of USD 2400 were incurred for a production order. Part of the order quantity was transferred into inventory. Because of this partial delivery, the order was credited with USD 1200 and the inventory debited correspondingly.

In the first period, the work in process for the order is USD 1200. Settlement allocates USD 1200 to Financial Accounting and Profit Center Accounting.

In the next period, additional actual costs of USD 1200 are incurred. Total work in process is USD 2400. When you settle, the difference of USD 1200 resulting from the previous period is allocated to Financial Accounting and Profit Center Accounting.

In the next period, the remaining part of the order quantity is transferred into inventory. Because of this delivery, the order is credited with USD 1200. The order balance is now zero. The status of the order is delivered. When the WIP is calculated, the remaining work in process of USD 2400 is canceled. Settlement cancels the previous work in process and settles the difference between the actual debits and the actual credits of the order to a price difference account.

Process Flow in Accounting

In the first period, the system performs the following postings:

In the second period, the system performs the following postings:

In the third period, the system performs the following postings:

 

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