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 )
Reproducing the Issue
- Go to the General Ledger work center.
- Under Reports select G/L Accounts - Line Items.
- Fill in the necessary attributes for Company, Set of Books, Accounting Period/Year.
- As G/L Account specify the respective DCoGS-account XYZ.
- 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.
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)
|Journal Entry Type||Posting Date||Balance DCoGS|
|Goods Receipt from Supplier DEF over 35.000 EUR (Debit).||10.02.2015||35.000 EUR|
Reversal of Goods Receipt from Supplier GHI over -20.000 EUR (Credit).
Reversal GHI cancels Goods Receipt from Supplier JKL exhibiting a posting date 15.02.2014.
|Goods Receipt/Invoice Clearing over -5.000 EUR (Credit) relating to Goods Receipt from Supplier DEF.||28.02.2015||10.000 EUR|
|Revenue Recognition clearing -30.000 EUR (Credit) against DCoGS account XYZ.||28.02.2015||-20.000 EUR|
KBA , SRD-FIN-GL , General Ledger , How To