When an A/R invoice is raised in Eralis Job, a standard SAP Business One A/R invoice is created, as well as a regular invoice journal entry. Eralis Job will make an adjustment to that journal entry which relates to the COGS. After the regular SAP Business One invoice journal has been created, Eralis Job will automatically create another entry. This entry has two parts:
- The first part of the journal will reverse the COGS posting of the SAP A/R invoice journal.
- The second part of the journal will post the COGS according to the Eralis Job rules and cost determination.
These adjustments are necessary because of differences in the way Eralis Job manages the costs and GL determination.
A difference exists between the way that SAP Business One and Eralis Job determine the cost value of an A/R Invoice. This difference arises for two reasons:
- Eralis Job uses actual costing. When SAP Business One generates an A/R invoice, the system will use the current cost of the Item Code on the line, based on the system costing method, to determine the cost of goods sold value. However, Eralis Job holds the cost price against each line of the Job to reflect the actual costs that were associated to that Job. This leads to a difference in the cost determination of material items, especially in situations where the Item Code is a miscellaneous item code, or a code that is used frequently.
- Eralis Job applies a cost to non-inventory item codes. When generating an SAP Business One invoice that contains an Item Code marked as a non-inventory item, no cost price is associated to the line. With Eralis Job non-inventory item codes are used on all timesheet and resource entries, and can can also be used in A/P processing to reflect the purchase of services required to perform a Job. For this reason, non-inventory item codes potentially
make up a large portion of the costs attributable to Job.
When using Eralis Job, new GL determination methods are introduced to provide additional flexibility in determining the sales and cost of sales accounts that are used when generating an A/R invoice. Up until late 2007 versions of SAP Business One, the flexibility did not exist to alter the cost of sales account determination on a marketing document. A user could change the sales GL account that was used, but not the cost of sales account. This limitation extended to the SDK where the ability to change the sales GL codes on an invoice line was available, but the ability to change the cost of sales GL codes was not.
In more recent version of SAP Business One (late 2007 version and 8.8 version), this flexibility has now been provided reducing the GL determination need for generating the adjusting journal entries.
For these reasons, Eralis Job will create the additional journal entry to rectify any problems resulting from differences in the COGS GL determination or the cost price determination.
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