Accounting (FICO) Journal of MM Goods Issue, Transfer Posting, and Physical Inventory Difference Transactions

Goods Issue (GI)

T-Code used: MIGO or MB1A

The required field that must be filled in all Goods Issue process:

• Material number which will be issued
• Quantity issued
• Plant from where the material issued
• Storage location from where the material issued

A goods issue leads to a reduction in inventories stock.

• GI to cost center (movement type: 201)

The additional required field: Cost center number.

The typical accounting journal is:

Inventory account			Material consumption expense account
	1000		1000

• GI to Sales Order (movement type: 231)

The additional required field: Sales Order number.

The typical accounting journal is:

Inventory account			Cost of Goods Sold account
	1000		1000

After the sales processed, usually the finance department will bill (invoice) the customer (using SD Module T-Code: VF01), the typical accounting journal for this billing process is:

Customer account (Account Receivable)			Revenue from sales
1000				1000

• GI to Order (movement type: 261)

The additional required field: Order number.

The typical accounting journal is:

Inventory account			Material consumption expense account
	1000		1000

• GI for sales (movement type: 251)

The additional required field: Cost Center.

The typical accounting journal is:

Inventory account			Material consumption expense account
	1000		1000

• GI to asset (movement type: 241)

The additional required field: Asset number.

The typical accounting journal is:

Inventory account			Fixed asset account
	1000		1000

• GI for scrapping (movement type: 551)

The typical accounting journal is:

Inventory account			Material scrapping expense account
	1000		1000

Transfer material to material (movement type: 309)

T-Code used: MB1B

The receiving and supplying materials might be had same valuation class, that is, same inventory G/L account, or different valuation class, that is, different inventory G/L account.

The typical accounting journal is:

Inventory account (receiving mat)			Inventory account (supplying mat)
1000				1000

Physical Inventory difference posting

T-Code used: MI07

• GR for gain on physical inventory count (movement type: 701)

The typical accounting journal is:

Inventory account			Other revenue account
1000				1000

• GI for loss on physical inventory count (movement type: 702)

The typical accounting journal is:

Inventory account			Other expense account
	1000		1000