Example of Accounting of Lot Translate Transactions
This example illustrates the accounting entries for a lot merge transaction.
Scenario
A lot, Lot10, of Item-A with 10 units each and priced at $20 per item is translated into a another lot, Lot20, and in a different subinventory. The valuation unit set up in the cost profile is at the subinventory level.
|
Item |
Subinventory |
Transaction Type |
Quantity |
Amount |
|---|---|---|---|---|
|
Item-A |
Subinventory1 |
Inventory Lot Translate |
- 10 |
($200) |
|
Item-A |
Subinventory2 |
Inventory Lot Translate |
10 |
$200 |
Analysis
Cost accounting creates these distributions for the transaction corresponding to the source lots, Lot10.
|
Accounting Event |
Valuation Unit |
Accounting Line Type |
Cost Element |
Amount in USD (+Dr/-Cr) |
|---|---|---|---|---|
|
Lot Translate |
Subinventory1 |
Offset |
Material |
+ 200.00 |
|
Lot Translate |
Subinventory1 |
Inventory Valuation |
Material |
- 200.00 |
For the resultant transaction of the lot translate, these distributions are created.
|
Accounting Event |
Valuation Unit |
Accounting Line Type |
Cost Element |
Amount in USD (+Dr/-Cr) |
|---|---|---|---|---|
|
Lot Translate |
Subinventory2 |
Inventory Valuation |
Material |
+ 200.00 |
|
Lot Translate |
Subinventory2 |
Offset |
Material |
- 200.00 |