What Does co88 Mean?
What Does co88 Mean?
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We use CO88 inside the track record being an right away course of action after which you can use KO88 if orders needed correction and settlement separately (no level in managing all the plant to obtain one get)
It might be as per profits order Expense estimate i.e. for every unit Charge of goods receipt is as per the profits purchase Charge estimate, it can be be selling price According to the preliminary cost of the generation order, or it may be According to standard Value estimate of the fabric.
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The variances documented on the above really should characterize the difference between the Plan prices and the particular charges. Nonetheless, the noted figures seem to symbolize the whole actual prices!
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In other words, CO88 is accustomed to settle the wip and variance within your production orders (WIP or variance depends on the position of one's buy) towards the respective receiver G/L Accounts.
CO88 will likely not write-up the difference between approach and precise values, which happen to be a measure of how perfectly the purchase is prepared - a distinction between prepare and actual, displays that BOMs and rountings are Completely wrong, or even the estimate with the strategy is away from day - they are manufacturing Regulate problems not a postable FI entry.
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CO88 is actually a collective approach and can settle all order in a plant (or all vegetation) that have experienced WIP and Variance calculations pocessed.
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CO88 is used for collective processing of creation buy and processing orders. we can also shedule the settlement approach for mass processing of settling the orders.
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The actual fees posted to an purchase might be more or less than the worth with which an get was credited when the products receipt was posted. When you settle, this distinction between the debit and credit score of co88 the buy is transferred to Economic Accounting (FI).