2156036 - Negative Balance for Cost of Goods Sold after Applying Periodic Valuation Runs

The Deferrerd Cost of Goods Sold (DCoGS) account XYZ shows a negative balance (Credit) for a given accounting period XXX.YYYY. The applied accrual methods is Reverse deferrals and accruals.

Given that associated valuation runs as GR/IR Clearing and Revenue Recognition are periodically executed - the distinct assumption is that the DCoGS account is balanced at the end of each financial period.

( Where XYZ represents G/L account )

1. Go to the General Ledger work center.
2. Under Reports select G/L Accounts - Line Items.
3. Fill in the necessary attributes for Company, Set of Books, Accounting Period/Year.
4. As G/L Account specify the respective DCoGS-account XYZ.
5. Via Settings / Key Figures you can draw the attribute Balance Company Currency into the results-table.

G/L account XYZ shows a negative balance (Credit).

The fact alone that the DCoGS-account shows a negative balance (Credit) for a given accounting period does not necessarily imply a system error - even when all valuation runs have been conducted periodically and the applied accrual methods is  Reverse deferrals and accruals.

A balance in Credit can originate for example from Goods and Service Receipt cancelations associated with previous periods or fiscal years.

In order to identify such documents causing a negative balance it applies to filter for affected projects.

Example:

Project PPP shows a balance of - 20.000 EUR for period 002.2015 for DCoGS account XYZ. This is also reflected in the report Project - Line Items for the respective period.

When filtering for Journal Entry Type it becomes apparent how this balance is computed.

 ( Where PPP represents Project ID ) ( Where DEF,GHI, JKL represents Supplier ID)

KBA , SRD-FIN-GL , General Ledger , How To