Journal Entries for Work in Process Inflation Adjustments
The Work in Process Adj. Journal Entry program (R76A398) creates journal entries that reflect the effect of inflation on works in process. The system first revalues stock issues (document type WO) by using the price that is calculated through the PLAP process. The system then generates a journal entry for the differences between the historic amounts from the F4111 table and the PLAP adjusted amounts.
Using the data selection that you specify (document types, branch, items, and so on), the system searches table F4111 by post date and calculates the adjustment for each of the transactions that are found. The adjustment amount is based on the PLAP that is calculated for the year and period being processed, and the item cost level that is specified in the F4101 table.
The system generates journal entries by using the Work in Progress accounts of the original transactions. The system searches the AAI tables that created the transaction by company, transaction document type, and GL class.
The system uses this search hierarchy to obtain the business unit of the account:
The system obtains the business unit from the AAI table, using the AAI that is set up for the document type in the AAI Document Type - Work in Process Adjustment program (P76A395).
The system obtains the business unit from the work order, searching the F4801 table to determine whether the business unit from the AAI is blank.
The system uses AAI table 3911 (Expense or Cost of Goods Sold - Stock Valuation Adjustments) to create journal entries in the offset account and summarizes journal entries by current account.
You can run the Work in Process Adj. Journal Entry program in proof or final mode, and you can run it as many times as necessary.
The Work in Process Adj. Journal Entry program produces a report that lists the processed data. The report includes these fields:
Branch
Business Unit
Item
Document Type
Document Number
Quantity
UM
Original Amount
Adjusted Amount
Future Adjustment
Information on the report is grouped by company, fiscal year, fiscal period, GL date, and batch type and number. At the end of the report, under each transaction detail, the report indicates the journal entry.
When run in final mode, the Work in Process Adj. Journal Entry program generates journal entries in the F0911 table and indicates which transactions were processed in the F76A4111 table.