Value flows

Logistics derived postings

This cluster of value flow postings contains financial postings generated automatically from inventory and transportation activities. These postings ensure that financial and management accounting reflect operational transactions related to inventory and transportation without requiring manual entries. These postings ensure that financial implications of these activities are reflected in real time and enable finance

8 value flows

Procurement derived postings

This cluster contains financial entries generated from procurement activities, linking material management, financial, and management accounting. These postings typically occur as goods and services are ordered, received, and invoiced. Key activities include goods receipt and service receipt which impact the Goods Receipt/Invoice Receipt (GR/IR) account, inventory, and expense accounts. These postings help align proc

11 value flows

Production derived postings

This cluster refers to financial postings that arise from manufacturing activities, impacting accounts like work-in-progress (WIP), cost of goods manufactured (COGM), and production cost variances. These postings capture the financial impact of production processes, including production activities, movement of raw materials to finished goods and the recording of associated costs. They provide essential foundation for

7 value flows

Sales derived postings

This cluster represent financial postings that stem directly from sales processes, typically involving revenue recognition, cost of goods sold (COGS), inventory valuation, accruals, and taxes. These postings are generated when sales orders are fulfilled and invoiced, connecting various stages of the order-to-cash (O2C) process with financial accounting. Sales-derived postings are essential as they impact revenue repo

10 value flows

After Sales service derived postings

After-sales service postings refer to financial postings that capture costs and revenues related to post-sales activities, such as warranty repairs, maintenance, customer returns, and usage of spare parts. These postings are essential because they impact cost centers, profitability analysis, and sometimes, inventory valuations. During process design, these postings are significant as they help ensure accurate trackin

9 value flows

Project, plant maintenance, and quality derived postings

This cluster consists of postings related to project, plant maintenance, and quality activities. For projects, financial postings are associated with costs and revenues, such as costs incurred for materials, labor, and other resources. These postings are vital for project cost controlling and overall project profitability, offering real-time insights into expenses and financial commitments. In plant maintenance, fina

5 value flows