026_F&A_MN_PO_PR_12042020 (PO Auto GL Selection - Materials to be expensed out)

026_F&A_MN_PO_PR_12042020 (PO Auto GL Selection - Materials to be expensed out)

Useful: For SCM/F&A/HR/HSE/QC

 

Dear All,

 

In continuation to our mail Dated 6th April 2020 and 12th April 2020 with Subject line 025_F&A_MN_PO_PR_06042020 (PO Auto GL Selection - Services) we have now identified and configured the same logic for materials which needs to be charged off to cost as and when they are procured or received.

 

The change will result in following:

  • Automatic selection of GL code without any manual intervention from SCM team through back end configuration in SAP BYD
  • Reduce the step of GL selection for SCM
  • SCM need not co-ordinate with F&A regarding accuracy of GL code.
  • Consistency in accounting of various consumables or to be expensed type or material purchases for eg Repair and Maintenance, Stationary etc.

 

As per the recommendation of SCM and based on our previous experience we have created Codes for below listed materials in SAP.

 

Going forward any PO which SCM will create having services they need to ensure following:

  • Account Assignment Type should never be selected as “General Ledger Account”
  • Item Type is selected as “Material”
  • Process Type is selected as “Non Stock”

 

Important points to remember for future reference:

  • Please send your request for creating such material codes (Non Stock) in SAP BYD to F&A so that we can ensure the consistency in accounting.
  • While all the approved PO’s will be accommodated in this all the new PO’s or PO’s under approval related to this need to be changed so that revised modality can be adopted at the earliest.
  • No change in any other process.
  • SCM can give a list of any further such materials (to be expensed out) they want to get created in SAP BYD.
  • All these materials will be considered under product Category 700-10 – Non Stock Products

 

We have done necessary testing on our part and it seems to be working fine.

Still if any issues arise these will be handled as and when they arise.

In case of any issues please get in touch with us.

Please circulate to all the concerned.

 

Type

Coding

Material description

EXPENSE

MAT_EX_CONS_0001

CONSUMABLES

EXPENSE

MAT_EX_PACK_0002

PACKING MATERIALS

EXPENSE

MAT_EX_RPNM_0004

R&M - IT Equipments

EXPENSE

MAT_EX_RPNM_0005

R&M - Buildings

EXPENSE

MAT_EX_RPNM_0006

R&M - Vehicles

EXPENSE

MAT_EX_RPNM_0007

R&M - Plant & Machinery

EXPENSE

MAT_EX_RPNM_0008

R&M - Equipment (Factory Related - other than P&M)

EXPENSE

MAT_EX_RPNM_0009

R&M - Office Equipment (Other than IT Related)

EXPENSE

MAT_EX_RPNM_0010

R&M - Others

EXPENSE

MAT_EX_STAT_0003

STATIONERY

 

 

Thanks & Regards,

Piyush

 


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