Maintenance & Project Capitalization Accounting -

Summary:

We have enabled Project-Driven Supply Chain and are observing the following accounting behavior in the overall process flow when using project-specific inventory in a Maintenance Work Order. We would like to understand whether this is the expected system functionality and whether there are any workaround options available to avoid a mismatch in the Inventory Valuation account.

The accounting flow is as follows:

1. PO Receipt for Project-Specific Inventory
   Dr: Inventory Valuation
   Cr: Accrual
   → The cost is collected into Project Costs.
2. Consumption of Project-Specific Inventory into Maintenance Work Order
   Dr: Maintenance Expense (CIP Account)
   Cr: Inventory Valuation
   → This transaction is not interfaced to Projects, as it is consuming project-specific inventory.