Sales and Distribution Accounting Entries

September 25, 2008 jiteshdua a) At the time of delivery of goods (PGI)

Cost of goods sold account Dr Inventory account Cr (This entry is passed by the cost of the item delivered) b) During generation of Invoice

Customer / Debtors account Dr Sales/Revenue account Cr Taxes Cr (This entry is passed by the selling price) c) During collection of Payment

Bank account Dr Discount Dr Customer/ Debtors account Cr

INVOICE GENERATION Invoices will be generated at the Smelters and stock points. The accounting entries for the sale of goods despatched will flow from the Sales invoice generated in SAP Sales and Distribution module. The following entries shall be passed Customer Account Revenue Excise Duty Payable Sales Tax Payable (local or central) Dr Cr Cr Cr

Note: As mentioned above in the FI document, which is created in the background, the SD invoice number shall be captured. However as per the current accounting procedure the accounting entry passed is as follows :Customer Account Revenue Dr Cr

Excise Duty Billed Sales Tax Payable (local or central) Excise duty paid a/c Dr

Cr Cr

Excise duty payable a/c EXPORT SALES

Cr

There have been very few export transactions in the past. SAP system will be designed to handle export business. Exports are mainly from the mines and will be handled at the mines, however the documentation part will be taken care at the Head Office. The accounting entry is: Customer Account Revenue (Exports) Dr Cr

The realisation of export sales will be directly credited to the bank. The accounting entries will be as follow: Bank Customer Exchange Fluctuation Dr/ Cr Dr Cr

The accounting entries will be: Rebates/Discounts Customer DEBIT MEMOS Debit Memos shall be issued in case of price difference, sale tax difference and interest on usance period and overdue payments. The accounting entries for two possible scenarios are as follows: Price Undercharged: Customer Account Revenue Sales tax payable Sales tax undercharged Customer Account Sales tax adjustment Dr. Cr. Dr. Cr. Cr. Dr Cr

Interest on delayed payments/usance period and other charges Customer Account Interest Others Dr. Cr.

In case of HZL a complete retirement or a partial retirement of asset is done. The system uses the asset retirement date to determine the amount to be charged off for each depreciation area. The existing accounting policy is to provide depreciation for the full quarter in which the asset is

sold/discarded, recommended that the depreciation be provided from the date of acquisition on prorata basis . Accounting entry for sale of Asset to customers: Customer Account Asset Sale Accumulated Depreciation Asset Sale account Asset account Profit on sale (if applicable) Dr Dr Cr Cr Loss on Sale (if applicable) Dr Dr Cr

Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is posted to the GL Account (Sales Tax Payable) Accounting entry for sale without a customer: Accumulated Depreciation Loss on Sale (if applicable) Asset Sale account Asset account Profit on sale (if applicable) Accounting entry for scrap Accumulated Depreciation Loss on Sale of Assets Asset account SALE OF SCRAP The sale of scrap (non-stock) shall be mapped as a direct manual FI entry. The customer will be created as a FI customer. No Logistics module will be involved in the process. A FI Invoice will be prepared for the sale of scrap with the following entries: Customer Sale of Scrap Excise Duty Payable ADVANCES FROM CUSTOMERS Advances are received from the customers against delivery. These advances will be recorded in a special general ledger account. The accounting entry for the same will be: Bank Account Dr Cr Advance Customer Payments Dr Cr Cr Dr Dr Cr Dr Dr Dr Cr Cr

These advances will be later on adjusted against the invoices raised on the customers. Advances can be adjusted against more than one invoice at the time of clearing of the invoices against advances. Adjustment of Advances Customer Account Advance Customer Payments Dr A financial document would be created for each Bank Guarantee received and this document number will be referred to in the Sales Order which would then monitor the value and the validity of the of the Bank Guarantee instrument wise while doing the billing.The letter of credit /Bank guarantee given will be recorded as a noted item. Accounting Entry for Goods receipt Stock/Inventory account GR/IR account Freight clearing account Dr Cr Cr Cr

Accounting Entry on invoice verification of supplier GR/IR Vendor account Dr Cr

Accounting Entry on invoice verification of freight vendor Freight clearing account Freight Vendor account GOODS RECEIPT Based on the Purchase order and the Quantity actually received Goods Receipts (GR) will be done. Based on the GR done the following accounting entry will be passed in the Financial Accounts RM/PM Stock Account GR/IR Account Freight Clearing Account EXCISE INVOICE VERIFICATION On receipt of the excise invoice cum gate pass the following entry will be passed RG 23 A / RG 23 C Part 2 Account Cenvat Clearing Account Dr Cr
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Posted in 5.2 Billing documents, Account determination, Integration with MM, FI, PP. 6 Comments

Configure Invoice Retention

July 9, 2008 jiteshdua

Transaction Codes used OBB8, OBB9

AR retentions: Contractually, the construction company and the owner define that a certain amount of the contract value is only paid after a certain timeframe (after a guarantee period). The retention amount can be calculated using SD conditions on the contract/sales order. AR retention starts from the processes in L35: Contracting. When the contract is signed with the customer, the retention payment term is maintained on the contract to reflect this payment agreement. When the billing point is reached, the project manager creates a billing document. The billing document can be configured to automatically transferred to finance to generate accounting document. The billing document can also be manually configured to check and release separately for additional authorization control After the billing document is released to accounting, according to the defined retention term, the actual amount and due date of Accounts receivable is calculated and reflected on the account detail information. The accounting clerk can check this information. The customer will pay the money according to retention. The accounting clerk entered the received money into the system to clear the relevant account receivable.

1 AR Retention 1.1 Check Customer Billing Document

Use

In this activity, you check the billing document and release it.

In some cases, the billing document is automatically released. If the billing document has already been released, the Release to accounting steps below (steps 11 and 12) can be skipped. Prerequisites

The billing document was created in the L35 scenario, Contracting in section 2.6 Creating Billing Document.
Procedure 1. Access the transaction choosing one of the following navigation options:

SAP R/3 menu

Logistics Sales and Distribution Billing Billing Document Change Project Manager VA03

Business Role Transaction code

2. On the Display Order: Initial screen, in the Order field, choose F4 Help. 3. On the Search dialog box, on the Loading Agenda: Sales Doc. Grouped by PO. Number: Customer tab, enter the following data:

Field name Purchase Order Number Sold to Party

Description

User action and values Test Milestone* EC0600

Comment

4. Choose

Start Search. The system finds the Sales order number, 1 . Double-click it to enter the

value in the Order field. 5. Choose Display Document Flow. On the Document Flow screen, select the Invoice Display document to display the document detail.

009xxxxxxx line item and choose

6. On the Invoice 9xxxxxxx (F2) Display: Overview of Billing Items screen, check the total amount of billing document, and make a note of the amount ___________. 7. From the menu, choose Goto Header Header. 8. On the Invoice 9xxxxxxx (F2) Display: Header screen, on the Header tab, in the Price data section, ensure that the value of the payment terms is RTN1. 9. Choose Back.

10. On the Invoice 9xxxxxxx (F2) Display: Overview of Billing Items screen, from the menu, choose Billing Document Change. 11. On the Change Billing Document screen, choose Rel. to Accounting.

12. The system displays the message Document 9XXXXXXX has been saved. 13. Choose Result Exit twice.

An Accounting document is generated from the sales order billing document. This function can be automatically achieved when you create the billing document. Depending on the configuration, normally, the project manager usually checks the billing document first and then releases it to Accounting.

1.2 Display Customers Account Information

Use

This activity displays the customers account information.

Procedure 1. Access the transaction choosing one of the following navigation options:

SAP ECC 5.0 Accounting Financial Menu Accounting Customers Account Display/Change Line Items Business Role Accounting Clerk Transaction code FBL5N

2. On the Customer Line Item Display screen, enter the following basic data:

Field name Customer Company Line Item Selection:

User action and values EC0600 BP01 Select Open items

Comment

Status Type
3. Choose Execute.

Open at Key Date: Current Date Select Normal Items

4. On the Customer Line Item Display screen, choose

Change Layout.

5. From the Hidden Fields panel, choose the Net due Date and Payment term fields, then choose Show Selected Fields to transfer these fields from right panel to left panel. 6. Choose Copy.

7. One the Customer Line Item Display screen, find your created invoice document by looking up the document number.

There are two lines with this document number. Check the amount, payment due date and payment term. One line should have a 90% amount, a due date that is the current date, and a new payment term of 0001. Another line has a 10% retention amount, a due date of current date plus 1 year, and a payment term of BLCK. 8. Choose Result Cancel twice.

An invoice with Retention Payment Terms has been automatically split into two line items with different new payment terms.

Payment Term ZRT1 (due in 365 days)

Splitting the Payment into 90% and 10% (retention)

Posted in 5.2 Billing documents, Tips. Tags: Billing Retention. 4 Comments

Billing quantity
August 30, 2007 jiteshdua

You can make the settings for the billing quantity in the copy control. You have the options of keeping the billing quantity equal to order quantity or delivery quantity or delivered quantity minus the quantity already invoiced. The billing quantity indicator specifies which quantity the system copies from the source document (a sales order, for example) into the target billing document (an invoice, for example). Make sure that control of the amount to be billed is directly related to the item category billing relevance. (e.g. K delivery related invoice for partial quantity, G Order related billing of the delivery quantity etc.) Posted in 5.2 Billing documents. 1 Comment

One Line Item per invoice

August 21, 2007 jiteshdua

There is a standard routine provided by SAP for this. We just need to assign routine 6 at (copy control delivery to billing) data transfer VBRK/VBRP and maintain TVKO_MAXBI (Max no. of line items in invoice) = 1.
Purpose This is an example of a data transfer routine. FORM routines for data transfer allow you to fine tune the transferred fields during the copying process. This requirement is used to limit the number of line items allowed in any single billing document.

Example
In some countries there are government regulations that state that there is a limit as to the maximum number of lines that can be in any single invoice document. In order to insure that this regulation is adhered to, this requirement can be assigned to the billing item category and the appropriate limits maintained in configuration. Procedure Define a max number of line items in the IMG and then force an automatic split based on this using a copy control routine, email me if you have any problems, details are below. IMG Sales & Distribution>Billing>Billing Documents>Country Specific Features>Maintain Maximum Number of Billing Items Enter the country code creating billng document and the Max allowed number of billing items (note problem is on the FI side so Id advise 450 items or less). In the copy control routine from your Delivery Doc or Sales Doc to your billing type at item category level enter the following code to force a split based on the max number of items youve defined. Adjust to suit any other internal requirements. This is SAP standard and works fine.

** * Data transfer for delivery related billing * ** ** * FORM DATEN_KOPIEREN_633 * ** * > VBAK Order header KUAGV View Sold-to * * VBAP Order item KURGV View Payer * * VBKD Business data order KUREV View Bill-to * * LIKP Delivery header KUWEV View Ship-to * * LIPS Delivery item * ** DATA: BEGIN OF ZUK2, MODUL(3) VALUE 006, VTWEG LIKE VBAK-VTWEG, SPART LIKE VBAK-SPART, VGBEL LIKE VBRP-VGBEL, BILLNO LIKE TVKO-MAXBI, END OF ZUK2. DATA: BEGIN OF J_1B_SIZE_SPLIT2 OCCURS 0, KUNRG LIKE VBRK-KUNRG, KUNAG LIKE VBRK-KUNAG, ZTERM LIKE VBRK-ZTERM. INCLUDE STRUCTURE ZUK2. DATA: ITEMNO LIKE TVKO-MAXBI. DATA: END OF J_1B_SIZE_SPLIT2. DATA: J_1B_SIZE_COPY2 LIKE J_1B_SIZE_SPLIT2. ** * FORM DATEN_KOPIEREN_633 * ** * This is a clone of routine 003. * * It will ensure that * ** * one billing document can only have one reference document * * the sum of item volumes will not exceed the amount * * specified in the number of billing doc. items for the * * sales organization (TVKO-MAXBI) * **

FORM DATEN_KOPIEREN_633. CLEAR: VBRK-EXPKZ, VBRK-EXNUM. VBRK-BZIRK = SPACE. VBRK-KDGRP = SPACE. VBRK-KONDA = SPACE. VBRK-REGIO = SPACE. VBRK-PLTYP = SPACE. * If maximum number of billing items active IF NOT TVKO-MAXBI IS INITIAL. * Get billing doc. item number split data READ TABLE J_1B_SIZE_SPLIT2 WITH KEY KUNRG = VBRK-KUNRG KUNAG = VBRK-KUNAG ZTERM = VBRK-ZTERM VGBEL = VBRP-VGBEL. IF SY-SUBRC <> 0. CLEAR J_1B_SIZE_SPLIT2. MOVE-CORRESPONDING VBRK TO J_1B_SIZE_SPLIT2. MOVE-CORRESPONDING VBRP TO J_1B_SIZE_SPLIT2. ENDIF. * Check number of billing items against max. defined by tvko-maxbi IF J_1B_SIZE_SPLIT2-ITEMNO < TVKO-MAXBI. J_1B_SIZE_SPLIT2-ITEMNO = J_1B_SIZE_SPLIT2-ITEMNO + 1. ELSE. J_1B_SIZE_SPLIT2-BILLNO = J_1B_SIZE_SPLIT2-BILLNO + 1. J_1B_SIZE_SPLIT2-ITEMNO = 1. ENDIF. * Store actual billing document counter and item counter READ TABLE J_1B_SIZE_SPLIT2 INTO J_1B_SIZE_COPY2 WITH KEY KUNRG = VBRK-KUNRG KUNAG = VBRK-KUNAG ZTERM = VBRK-ZTERM VGBEL = VBRP-VGBEL. IF SY-SUBRC = 0. MODIFY J_1B_SIZE_SPLIT2 TRANSPORTING ITEMNO BILLNO

WHERE KUNRG = VBRK-KUNRG AND KUNAG = VBRK-KUNAG AND ZTERM = VBRK-ZTERM AND VGBEL = VBRP-VGBEL. ELSE. APPEND J_1B_SIZE_SPLIT2. ENDIF. * Add billing doc. number to split criteria ZUK2-BILLNO = J_1B_SIZE_SPLIT2-BILLNO. ENDIF. * End of billing document split by number of allowed items ZUK2-VTWEG = VBAK-VTWEG. ZUK2-SPART = VBRP-SPART. IF KURGV-PERFK = SPACE. ZUK2-VGBEL = VBRP-VGBEL. ENDIF. VBRK-ZUKRI = ZUK2. VBRK-KUNAG = VBRK-KUNRG. ENDFORM.