FICO Accounting Overview Example

FI (General Ledger) Controlling Area

Account Db. Cr. Profit Center Accounting

A 1031130 - Shipped not billed 60 LOB PC Product Line PC#1

1031080 - FG Inventory on hand 60 7121000 C 50 12 F 9430001 5117000 E 18 45 G
7121000 D 15 10 F 9430002 9430001 F 12 3 I
B 1021000 - Trade Accounts Receivables 150 7119800 D 35 8 F 9430003 9430002 F 10
4111101 - Gross Sales products 150 9430003 F 8
B 5111100 - Products cost of goods sold 60 9421001 J 20 20 J 9421001 5116400 I 3
1031130 - Shipped not billed 60 9420001 H 15 15 H 9420001
50 C Liability 5111100 60 150 B
C 7121000 - Indirect Salary 50 50 D Liability
Liability 50
Cost Center Accouting
D 7121000 - Indirect Salary 15
D 7119800 - Direct Salary 35 Selling CC - S001 (F.A.) Mfg. Direct CC - M001 (F.A.)
Liability 50 7121000 C 50 7119800 D 35 12 F
10 F
E 5117000-Material Consumed 18 8 F
1031040 - Raw material inv on hand 18 9420001 H 15
20 J
F 7995000 - Mfg Direct Labor (9430001) 12
7995000 - Mfg Direct Labor (9430001) 12 0
F 7995000 - Mfg Direct OHS (9430002) 10
7995000 - Mfg Direct OHS (9430002) 10 Prod. Order - P001 (F.A.) Profitability Seg #1
F 7995000 - Mfg Indirect L+O (9430003) 8 5117000 E 18 45 G 5117200 9421001 J 20
7995000 - Mfg Indirect L+O (9430003) 8 9430001 F 12
9430002 F 10
G 1031080 - FG Inventory 45 9430003 F 8 3 I 5117200
5117200- Transfer to FG 45 (month end job)

H 799XXXX - ASSESS -IND LAB & OH (9420001) 15 0

 799XXXX - ASSESS -IND LAB & OH (9420001)
I 1031061 - WIP settlement automated
5117201 - Trsfr to Inv WIP S-A
I 5116400 - Prod Order Settlement Variance
5117200- Transfer to FG
Controlling Only Posting - No FI Update (Not Mapped to P&L)
J 9421001 - Prof. Analysis Assessment
9421001 - Prof. Analysis Assessment
Total 441
15
A Goods are delivered to the customer, inventory is relieved
0 B Bill Due List released to accounting, sales invoice is posted and CGS is posted
0 C Salary expense is recorded for sales representatives
3 D Salary Expense is recorded for direct mfg and ind mfg (production management)
3 E Raw materials are issued to a process order
F Labor hours are confirmed to the production order resulting in absorbtion of conversion cos
G Goods receipt is entered in MM and FG inventory is updated at actual quantity * standard c
20 H Mfg indirect costs are assessed to direct mfg cost centers
20 I Month end - WIP is calculated, Production variance is calculated, Settlement job posts resu
J Over/Under absorbed allocated to management P&L
441 Note: Production order is teco'd -> WIP=0, variance = (mat cons+posted hrs)-FG=3
 Net P&L Impact
rolling Area B Sales -150
B CGS 60
C indirect salary (selling) 50
duct Line PC#1 D Direct and indirect sal 15
5117200 D Direct and indirect sal 35
5117200 E Material consumed 18
G Receipt of Finished G -45
I Variance 3
I Variance -3
Net Result -17
4111101

P&L Mapping to Consolidation System (HFM or BP

. Direct CC - M001 (F.A.) Mfg. Sup CC F001 (F.A.)
9430001 7121000 D 15 15 H 9420001 SALES
9430002 4111101 - Gross Sales products + Profit Center -150
9430003 COST OF GOODS SOLD
5111100 - Products cost of goods sold + Profit Center 60
9421001 PRODUCTION VARIANCE
5117200- Transfer to FG + P001 -45
0 5117000-Material Consumed + P001 18
7995000 - Mfg Direct Labor (9430001) + P001 12
fitability Seg #1 7995000 - Mfg Direct OHS (9430002) + P001 10
7995000 - Mfg Indirect L+O (9430003) + P001 8
5117200- Transfer to FG + P001 -3
5116400 - Prod Order Settlement Variance 3

799XXXX - ASSESS -IND LAB & OH (9420001) + F001 15

799XXXX - ASSESS -IND LAB & OH (9420001) + F001 -15
 MFG OVER/UNDER ABSORPTION
7121000 - Indirect Salary - M001 15
nd CGS is posted 7119800 - Direct Salary - M001 35
7995000 - Mfg Direct Labor (9430001) + M001 -12
ction management) 7995000 - Mfg Direct OHS (9430002) + M001 -10
7995000 - Mfg Indirect L+O (9430003) + M001 -8
absorbtion of conversion cost
at actual quantity * standard cost 7121000 - Indirect Salary +S001 50

ted, Settlement job posts results Total P&L -17

ns+posted hrs)-FG=3
nsolidation System (HFM or BPC)

SALES

COST OF GOODS SOLD

NETS TO 0 on production order

PRODUCTION VARIANCE

Manufacturing Support Nets to Zero for functional area

Favorable of 20 for functional area summarization
FICO Module Overview (example includes only P&L postings)

FI (General Ledger) Controlling Area

Account Db. Cr. Profit Center Accounting

A 1031130 Shipped Not Build 60 Plant PC Bus. PC#1

1031080 Fin Goods on Hand 60 7119800 C 50 25 F 7995000 5117000 E 15
7119800 D 20 10 H 900001 7995000 F 25
B Customer a/c 80 7119800 D 10 50 J 900002 5117200 I 5
4111101 Sales Products 80 900001 H 10 5 K 900003 900003 K 5
0
C 7119800 Direct Labor 50
liability 50 Cost Center Accouting

D 7119800 Direct Labor 20 Selling CC Mfg. CC

7119800 Direct Labor 10 7119800 C 50 50 J 900002 7119800 D 20
liability 30 900001 H 10

E 5117000 Material Consumed 15 0 0

1031940 Raw Matl on Hand 15
Prod. Order Seg. CC#1
F 7995000 Products Absorption 25 5117000 E 15 45 G 5117200 900003 K 5
7995000 Products Absorption 25 7995000 F 25
5117200 I 5
G 1031080 Fin Goods on Hand 45 0
5117200 Trf to Inv Fin Goods 45 A Goods are delivered to the customer, inventory is relieved and CGS is poste
B Bill Due List released to accounting, sales invoice is posted
H C Salary expense is recorded for sales representatives
D Salary Expense is recorded for direct mfg and mfg support
E Raw materials are issued to a process order
I 5117200 Trf to Inv Fin Goods 5 F Machine hours are confirmed to the production order resulting in absorbtion
5116400 Prod Order Settle Var 5 G Goods receipt is entered in MM and FG inventory is updated at actual quant
H Mfg support expense is assessed to direct mfg cost centers
J I Month end - WIP is calculated, Production variance is calculated, Settlement
J Selling Department allocated to management P&L
K Over/Under absorbed allocated to management P&L
K

310 310

-60
80
-50
-20
-10
-15
45
-30
 Controlling Area Line Items Mapped To
Management P&L in PCA
* primary postings
Bus. PC#1 Bus. PC#2 * receiver side of allocations
45 G 5117200 1031130 A 60 80 B 4111101 * functional area concept
5 I 5116400 900002 J 50 PC #1 PC #2
4111101 - Sales 80

1031130 - SNB -60

900003-O/U -5

Mfg. CC Mfg. Sup CC 900002-Selling -50

25 F 7995000 7119800 D 10 10 H 900001
5 K 900003 5116400 - Prod Va 5
0
Net Loss 0 -30

Seg. CC#1 Seg. CC#2

900002 J 50

s relieved and CGS is posted

order resulting in absorbtion of conversion cost

y is updated at actual quantity * standard cost

nce is calculated, Settlement job posts results

1
1
1
0
1
0
1
0
1
1
Goods are delivered to the customer, inventory is relieved and CGS is posted
Bill Due List released to accounting, sales invoice is posted
Salary expense is recorded for sales representatives
Salary Expense is recorded for direct mfg and mfg support
Raw materials are issued to a process order
Machine hours are confirmed to the production order resulting in absorbtion of conversion cost
Goods receipt is entered in MM and FG inventory is updated at actual quantity * standard cost
Mfg support expense is assessed to direct mfg cost centers
Month end - WIP is calculated, Production variance is calculated, Settlement job posts results
Selling Department allocated to management P&L
Over/Under absorbed allocated to management P&L
Goods are delivered to the customer, inventory is relieved and CGS is posted
Bill Due List released to accounting, sales invoice is posted
Salary expense is recorded for sales representatives
Salary Expense is recorded for direct mfg and ind mfg (production management)
Raw materials are issued to a process order
Labor hours are confirmed to the production order resulting in absorbtion of conversion cost
Goods receipt is entered in MM and FG inventory is updated at actual quantity * standard cost
Mfg indirect costs are assessed to direct mfg cost centers
Month end - WIP is calculated, Production variance is calculated, Settlement job posts results
Selling Department allocated to management P&L
Over/Under absorbed allocated to management P&L