---
title: "Methods to update cost accounting using general ledger"
canonical: "https://wiki.soft1.eu/space/SS5EN/12060466/Methods%20to%20update%20cost%20accounting%20using%20general%20ledger"
format: markdown
---
The creation of cost accounting entries follows a specific logic based on G.A.S. Specifically, there are required accounts, which are:

- Interim offsetting accounts     (90)
- Cost Centers (locations)            (92)
- Production cost - production in progress (93)
- Stocks (94)
- Income - Gross detailed operating results (96)
- Detailed operating results (98)

 

The method of analysis of the general ledger accounts in cost accounting is the following:

 

**General Ledger                     Intermediate            Cost Accounting**

**Account    **

**Group 2**

Initial Op. balance (20)             90.01                           94. Stocks

Purchases (20.01)                     90.02                           94. Stocks

 

**Group 6**

Operating expenses (6)             90.06                          92. Cost centers

 

**Group 7**

Operating income (7)                 90.07                         96. Revenue gross operating results

 

**Group 8**

Extra losses (81.02)                     90.08                         98. Detailed operating results

Extra profit (81.03)                     90.08                         98. Detailed operating results

 

 

► Info:

•If account 93 has a balance, this means that production is in progress.

•Account 94 depicts the balance value of all stock in inventory.

•Account 98 illustrates net profit/ loss.

 

 

## Cost accounting monitoring in the system

There are methods to monitor the Cost accounting from the system:

- Using links from commercial management
- Using Activity Based Costing (ABC)
- Through the General Ledger
  - Right clicking on the entry lines and selecting ''Entry analysis''
  - Using analysis models
- Through manual entries directly from the Cost accounting module. (Entries)