STKPOST - 

Tax legislation in Turkey ensures that can not record a product as COGS before the date of the Sale. According to the Turkish tax legislation, ITAS can not determine the TRY cost of goods purchased in foreign currency without paying customs duty in Turkey. We need to enter the TRY equivalent of the purchased products as inventory in the system based on the exchange rate in the Customs declaration, meaning that the TRY equivalent is not determined before the products are nationalized at customs.

The 'Latest Stock Date' is the date the last STKPOST created accounting postings.

Processes

  1. Trigger points for movements (generation of IT docs)
  2. Nomination of Accounts
  • Update to INVDIRECT for difference account
  1. Values to move – Purchase Invoice + costs flagged as In Stock (phys and inv)
  2. Application to create IT docs to run overnight
  3. Stock Value Table
  • ROE to TRY to use along the chain
  • COGS recognition
  1. Late Cost (after COGS recognition)
  2. TRADECOS

Trigger Points

  1. i) TT Date required on Purchase for any Goods value, Costs (flagged as in stock) against the purchase and Logistics costs (flagged as in stock, which they must be) to be processed. To have a TTD the Purchase must have been invoiced so there will never be a Purchase Goods Value Accrual to consider.
  2. ii) Move to Warehouse not Customs Cleared. INVENTORY/Logistics movement to warehouse to be completed with no customs cleared date entered. This information is at contract level

iii) Change to Customs Cleared. No logistics plan needed. Just entry of CC date on internal Purchase. However, if the Customs Cleared Date can be maintained via Traffic in INVENTORY/Logistics on the previous Logistics plan (no sale involved) this will make the process more efficient

  1. iv) Customs Cleared Goods to truck. Incomplete Logistics move in INVENTORY. Load Date entered.
  2. v) Logistics move of Customs Cleared Cotton to Warehouse is marked as complete.
  3. vi) Inventory (lots, purchase splits) allocated to a Sale. Sale as TT Date. Stock Value moved to COGS account.

Nomination of Accounts

Accounts are required for each Stock Value Stage.

Goods

  1. Internal Purchase Invoice posts into Expense Code Account
  2. Nomination of in Warehouse not Customs Cleared Account
  • Nomination of in Warehouse Customs Cleared Account
  1. Nomination of Customs Cleared, In Truck Account
  2. Nomination of Customs Cleared moved to Warehouse Account
  3. Nomination of Customs Cleared Account

Costs

  1. Nomination of Accrual Account
  2. Nomination of Inventory In Transit Account. Is this for costs or is it the same as the Purchase Invoice Expense Code account?
  • Nomination of in Warehouse not Customs Cleared Account
  1. Nomination of in Warehouse Customs Cleared Account
  2. Nomination of Customs Cleared, In Truck Account
  3. Nomination of Customs Cleared moved to Warehouse Account
  • Nomination of Customs Cleared Account

INVDIRECT

INVDIRECT to post to difference account for difference between accrual value and invoice value. Difference Account can be nominated per Cost or use company level account (ctrl30_invdirect.)
E.g. Accrual Value $600 so this will have been posted between Accrual Account and Inventory in Transit Account
Cost Invoice for $590. This will Credit CP for $590, Debit Accrual Account for $600, Credit Difference Account for $10.

Values to Move

Purchase Invoice Value

Costs which are to be included in Stock Value (PHYSCODES/Cost Types flag) and are recorded against the Purchase contract and Costs which are entered on Logistics Movements (these must be flagged as to be included in Stock to be part of the Logistics Movement).

Purchase must have a TT Date.

Values to be calculated and recorded at Purchase level for subsequent comparison

Values to be posted at Purchase level

Application to run overnight

Each night a process will run to put the stock values into the appropriate account.

  1. Locate all Purchases with TT Date
  2. Recognise the Stock Status of the Purchase (stage)
  • Calculate the current values of the goods and in stock costs associated with the purchase
  1. Compare to the details for the same purchase on the previous day’s records – value and stock stage
  2. Difference in Cost value due to accrual change to be posted as an IT from the Cost Accrual Account to the Nominated Stock Value Account for the Stock Stage (see trigger points)
  3. Difference in Cost value due to actualisation to be posted from the Difference Account into the Nominated Stock Value Account for the Stock Stage
  • Previous day’s Stock Value (goods and costs) to be moved from previous stage to the new stage if the Stock Value Stage has changed.
  • If no stock value found for previous day then post costs value from accrual account to Nominated Stock Value Account for the Stock Stage and post the Goods value (PI value) from the PURCH Expense Code account to the Nominated Stock Value Account for the Stock Stage
  1. Stock Value in new stage to be recorded on new Stock Value table
  2. Look for values on previous day’s stock table for which there is no purchase with TT Date on the current database. This could happen for a deleted/merged splits, deleted costs, removal of TT Date. The posting should reverse these entries out of the Nominated Stock Value Account for the previous stage into the Accrual Account.

Stock Value Table

For the postings over night to be accurate the stock value table needs to hold the full stock value by purchase/cost at any date. The record should include the stock stage and the account into which the value has been posted. These details will aid with the comparison for the next night.

A manual maintenance procedure should be available on the stock value table in case there is a need to affect the running of the next night’s stock process to ensure that the comparison works as required. A reversal process for the latest day’s IT docs and stock value records should be available. This will reverse the ITs and delete the stock value records fore the day to enable the rerunning of the process. If the process is not rerun the subsequent running of the process will use the previous day’s values for comparison.

ROE to Try

It is assumed that the functional currency for Turkey will be USD and the secondary currency will be TRY. Once the goods are customs cleared the Rate of Exchange to TRY will look for the prevailing rate for the Customs Date on the OTHFXR Customs table. All subsequent IT goods postings will use this rate when the stock value is moved along the chain. This only applies to the goods value. The standard company single currency rate application is used for costs.

COGS recognition

Once the cotton has been allocated to a sale with a sale tt date the overnight stock movement process should move the value of the goods and costs into the nominated COGS account.

If the Sale TTD is removed the overnight process needs to take the stock costs out of the COGS account and put them into the Stock Value Stage account appropriate to the status of the Purchases.

Late Costs

Late stock costs (post sale ttd) on the purchase will post as now. The overnight process will recognise if the costs have been amended/created and post from Accrual Account or Difference Account into the COGS Account.

At what point can contracts be removed from the stock report process? If there is a need to handle late costs when the sale invoice has been raised or reversal of the sale invoice the contracts will need to be reviewed for ever.

TRADECOS

The help for TRADECOS is shown below:-

This process for the update of Cost-Of-Sales will show existing values and suggest a current value (same process as FinCalc) in the same currency as the Sales Invoice. This is ONLY available for back-to-back trading i.e. Sales assigned to Inventory (I.e. PROTANK, PROSCHED, PROMAN, STKMAN) are excluded.

The purpose is to allow a company to correct and/or modify the COS that was calculated/secured during the Sales Invoicing process and so provide better performance statistics in the CUST_PL reporting.  At the time of Sales Invoicing, the estimates could have been dramatically incorrect and the subsequent actualisation processes have modified those estimates significantly. This applies to both Commissions and Costs for both the Sale and its' allocated Purchase.

There is an selection to restrict/filter where the tolerance between old/new values is greater +/- the user entered Percentage.

Currently it works for back to back operations only. For the purpose of TURCOT006 it needs to be adapted to work for sales allocated to cotton inventory.

Flows
Internal Sale

  1. Internal Sale in origin to create Internal Purchase Invoice to Credit Supplier and Debit In Transit Account (B/S). In Transit Account located through Expense Code. TRY equivalent to use standard Single Currency flags for Exchange Rate (doc date, docdate-1)
  2. Goods move from Inventory In Transit (no Warehouse) to Warehouse not Customs Cleared. The status of the goods has changed. An IT doc is required to move the goods from In Transit Account to a nominated Non Customs Cleared Account. Goods movement maybe partial. The lot and purchase will need to be split to ensure the correct value is moved up the chain. TRY equivalent will change as the IT doc will have a different document date.
  • Customs Clearance takes place (no physical movement is necessary). IT document generated between nominated Non Customs Cleared Account and Customs Cleared Account. Is there a need to use ‘date sent to broker’ and ‘customs cleared date’? If the date sent to broker is blank but the customs cleared date is populated what then?
  1. Goods are loaded on to truck. IT required for change in status from Customs Cleared to Internal Freight. Movement is not completed.
  2. Goods arrive at Warehouse. Movement marked as completed. IT doc required
  3. Sale TTD is added. IT doc required to move cost of goods and costs flagged as ‘in stk’ into COGS P&L account.
  • Update required for CUSTPL reporting.
  • Other stages may be required in which case the trigger point needs to be defined and account nominations need to be added

Domestic

The same process applies for Domestic purchases. The Purchase Invoice will post into stage v where goods are in Warehouse. Maybe there is Internal Freight to consider. Values will be expressed in TRY so there is no Customs Cleared Exchange Rate to consider

Points

  1. When the Customs Cleared Exchange Rate is used (entry of Customs Cleared Date) the TRY equivalent will be calculated using this rate and the previous IT docs will not be affected. The CC date rate applies to goods value and costs included in stock.
  2. In Stock Cost Invoices will be posted according to the Expense Code for the cost. If the costs have been included on a previous IT doc at a different value the stock value being moved out of one account and into another due to the change in status will be affected by the difference in cost value (estimate v actual)
  • Stock Cost Invoices will use the CC Date Exchange Rate for TRY equivalent if the goods are Customs Cleared when the cost invoice is raised.
  1. Late Cost Invoices (post Sale TTD) will need to be posted directly to COGS
  2. Clarity needed on how these postings affect EOMPO ‘Inventory Balance Adjustment’ and ‘Inventory in Transit’
  3. Costs on sales are not included in the IT docs but will be included in sale COGS.
  • In CSINVOICE Cost of Sales is currently derived from all costs and good value associated with the Purchases. There is no inclusion of inventory costs or sale costs