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Reply from KenThomson on Nov 8 at 5:34 PM So if I understand this correctly, the medical device should remain as a stock item in your accounts till the end of the contracted period at which point it is transferred to the customer at no charge. And during the contracted period this stock item is to have its cost/stock value diminish to zero over that term.
If the above is true, what account assignment should be given to the periodic reduction of the stock value?
Is that charged to a cost centre or internal order, or to cost of sales?
If charged to a cost centre or internal order then what could be done is to issue the medical device (stock item) to a special class of assets where it can then be depreciated in value over the contracted term such that at the end of the term it has zero value, then it can then be written off.
To do this you could either use the 'no charge' sales order type that will transfer the cost value of the stock item to an Internal Order and then someone needs to settle that Internal Order to the special class of assets, or easier still simply write the stock item off using movement type 241 to the asset of that special class of assets. (the asset master would need to have been created beforehand)
I suggest a special class of assets that from an accounting perspective holds its cost/book value as 'stock' as well as treats the depreciation postings not as a depreciation but instead to an account titled appropriately for this purpose.
If the diminishing value is to be charged to cost of sales over that contracted term, then maybe a 'free goods' sales transaction would be better.
With this you could charge a portion per year of the stock item to the customer at zero revenue which will internally account for that portion of the stock cost value to cost of sales against the customer. (or a smaller portion per period, and further this would only work if the unit of measure for that stock item can be in parts ? like for the 5 year term sell 0.2 in year 1 leaving 0.8 still in stock)
I see this as a bit cumbersome and messy, do you do lots of these or is this a bit of a once off that happens from time to time?
Re looking back at previous entries, maybe you could use the MB51 tran code to review past transactions of that material code.
I wish you well as you investigate what is best for your purposes.
Cheers, Ken
| | | ---------------Original Message---------------
From: Montwister
Sent: Tuesday, November 08, 2016 4:36 AM
Subject: Can We Configure SAP to Transfer the Cost to PPE Account and Perform Automatic Depreciation?
Thank you Ken for your reply.
When I read the contract, the medical device will be transferred to the customer at the end of contract period. In addition, the medical device is estimated to have zero value at that time. I am thinking of the use of 'no charge sales order type' because when I check asked the former finance personnel of the company, the sale in SAP is zero for this type of transaction.
Going back, how can I verify if the previous charges I looked into were assigned to an Internal Order? Based on my limited experience, an IO is often used to cater promotional expenses of the company.
Is there specific t-code to check if previous entries were done using Internal Order? |
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