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    EAM Accounting Entries

    Uploaded by

    Tejeshwar Kumar
    The document describes the accounting entries that are automatically generated by the EAM system for various work-in-process transactions. For issues and returns of components, the system debits/credits repair and maintenance accounts and inventory accounts. For outside processing charges, it debits repair accounts and credits accrual accounts. For internal resource usage, it debits repair accounts and credits resource absorption accounts. When closing jobs, it writes off balances in valuation accounts to variance accounts, leaving zero balances. Screenshots of relevant setup screens are attached.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    EAM Accounting Entries

    Uploaded by

    Tejeshwar Kumar
    624 views5 pages
    The document describes the accounting entries that are automatically generated by the EAM system for various work-in-process transactions. For issues and returns of components, the system debits/credits repair and maintenance accounts and inventory accounts. For outside processing charges, it debits repair accounts and credits accrual accounts. For internal resource usage, it debits repair accounts and credits resource absorption accounts. When closing jobs, it writes off balances in valuation accounts to variance accounts, leaving zero balances. Screenshots of relevant setup screens are attached.

    Original Description:

    EAM ACCOUNTING ENTRIES

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    The document describes the accounting entries that are automatically generated by the EAM system for various work-in-process transactions. For issues and returns of components, the system debits/credits repair and maintenance accounts and inventory accounts. For outside processing charges, it debits repair accounts and credits accrual accounts. For internal resource usage, it debits repair accounts and credits resource absorption accounts. When closing jobs, it writes off balances in valuation accounts to variance accounts, leaving zero balances. Screenshots of relevant setup screens are attached.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    624 views5 pages

    EAM Accounting Entries

    Uploaded by

    Tejeshwar Kumar
    The document describes the accounting entries that are automatically generated by the EAM system for various work-in-process transactions. For issues and returns of components, the system debits/credits repair and maintenance accounts and inventory accounts. For outside processing charges, it debits repair accounts and credits accrual accounts. For internal resource usage, it debits repair accounts and credits resource absorption accounts. When closing jobs, it writes off balances in valuation accounts to variance accounts, leaving zero balances. Screenshots of relevant setup screens are attached.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    Accounting entries as passed by EAM

    Note:

    The accounting code combinations are picked up automatically by the system, as


    setup in the “WIP Accounting Class definition” & “Resource
    definition”. (Screen shots are attached at the end)

    The values in the brackets () in the following accounting entries indicate the
    setup screen for the accounting entry.

    Accounting for Issue and Return Transactions:

    Components issued to or returned from jobs are valued at the inventory average
    cost in effect at the time of the transaction.

    Components issued to a job or returned from a job in several different


    transactions may have different unit costs for each transaction. If a component's
    unit cost is composed of more than one cost element, this elemental detail
    continues to be visible after it is charged to a job.

    For issue transactions:

    Account Debit Credit


    Repairs & Maintenance - Plant & Machinery XX -
    (WIP Accounting Class (Material) Valuation a/c)
    Stores – MRO (Inventory Organization) - XX

    For return transactions:

    Account Debit Credit


    Stores – MRO (Inventory Organization) XX -
    Repairs & Maintenance - Plant & Machinery - XX
    (WIP Accounting Class (Material) Valuation a/c)
    Accounting for Outside Processing Charges at actual Purchase Order
    price:

    The accounting transactions for outside processing charges at purchase order


    price are:

    For Purchase of the Services (Outside Processing Charges)

    Account Debit Credit


    Repairs & Maintenance - Outside Processing XX -
    (WIP accounting class (Outside processing) valuation a/c)
    AP Accrual a/c - XX
    (Inventory Organization)

    For Costing Resource Charges

    For all the “Resource” transactions, where an employee is used for a job, system
    passes an accounting entry on creating a transaction. This accounting entry is
    picked up from ‘Resource” definition (Screen shot attached), at the “Resource”
    cost set up.

    This is a notional entry passed by the system at pre set cost, for arriving at the
    Cost of the job.

    The accounting entries for resource transactions are:

    Account Debit Credit


    Repairs & Maintenance – Resource XX -
    (WIP accounting class resource valuation a/c)
    Repairs & Maintenance – Resource - XX
    (Resource absorption a/c)

    Note: Department & Cost Centre for the debit item above will be as setup in the
    WIP accounting class resource valuation a/c. However, the credit will have
    constant department & cost centre, which may not match with debit values.
    Costing Job Close Transactions:

    Work in Process recognizes variances when you close a job. The close process
    writes off the balances remaining in the WIP elemental valuation accounts to the
    elemental variance accounts you defined by accounting class, leaving a zero
    balance remaining in the closed job.

    If there is a positive balance in the job at the end of the close, the accounting
    entries for a job close are:

    Account Debit Credit


    All WIP accounting class Variance accounts XX -
    All WIP accounting class Valuation accounts - XX
    WIP Accounting Class Definition:

    Resource Definition (Internal):


    Resource Definition (Outside Processing):

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