Re: Electricity is Activity(secondary) in CO-PC but how to deal with actual bill for electricity (Primary)

Hi Mustafa,

Thanks for your clarification...

"When Debit is on COGS (P/L), Credit is on Electric Consumption (P/L) wrt Cost Center, while doing activity confirmation and revaluation"

Can you elaborate more on this where i have missed the accounting entry in below flow of production...

1. After Prod. Order Revaluation

RM/PM/TM/SFM = 80

LABOUR =                  10

DIESEL =                    05

ELECTRICITY =         05

----------------------------------

COGM =               100

2. Goods Receipt after Production

Finished Material Inventory            Dr 100

COGM                                        Cr 100    1----- (Contains 05 of Electricity)

3. Post Goods Issue

COGS                                         Dr 100    1----- (Contains 05 of Electricity)

Finished Material Inventory           Cr 100

4. Billing

Customer                                    Dr. 120

Revenue                                     Cr  120

5. Assume Electricity Bill is Rs. 05

Electricity Expenses                   Dr 05      2 ------- (Recreation of Expenses which has already                                                                                     considered in COGM/COGS)

Vendor                                      Cr 05

Thanks a Lot in Advance.....

Regards

Sagar Chinchkar