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

Goods Issue(GI)

T-Code used: MIGO or MB1A.
The Goods Issue transaction will trigger cost accounting process. Cost accounting will record the expense occurred from the goods issue transaction whether it will be charged to cost center, cost of goods sold, or other objects.
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

• 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