Posting key Name 0 Act assignment model 1 Invoice 2 Reverse credit memo 3 ank c!arges " #t!

er receivables $ #%tgoing &ayment ' Payment di((erence ) #t!er clearing * Payment clearing + ,&ecial -/. debit 11 Credit memo 12 Reverse invoice 13 Reverse c!arges 1" #t!er &ayables 1$ Incoming &ayment 1' Payment di((erence 1) #t!er clearing 1* Payment clearing 1+ ,&ecial -/. credit 21 Credit memo 22 Reverse invoice 2" #t!er receivables 2$ #%tgoing &ayment 2' Payment di((erence 2) Clearing 2* Payment clearing 2+ ,&ecial -/. debit 31 Invoice 32 Reverse credit memo 3" #t!er &ayables 3$ Incoming &ayment 3' Payment di((erence 3) #t!er clearing 3* Payment clearing 3+ ,&ecial -/. credit "0 Debit entry $0 Credit entry )0 Debit asset )$ Credit asset *0 ,tock initial entry *1 Costs *3 Price di((erence Posting key Name *" Cons%m&tion

Debit/Credit ----------Debit Debit Debit Debit Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Credit Credit Credit Credit Credit Credit Credit Credit Debit Credit Debit Credit Debit Debit Debit Debit/Credit Debit

*$ *' *+ +0 +1 +3 +" +$ +' ++

C!ange in stock -R/IR debit ,tock in/rd movement ,tock initial entry Costs Price di((erence Cons%m&tion C!ange in stock -R/IR credit ,tock o%t/d movement Debit C%stomer Credit C%stomer Debit 0endor Credit 0endor

Debit Debit Debit Credit Credit Credit Credit Credit Credit Credit -eneral .edger

1!e &reset doc%ment ty&es cover b%siness transactions in 2inancial Acco%nting (or3 o -eneral ledger acco%nting o Acco%nts receivable o Acco%nts &ayable o Asset acco%nting o Consolidation in 4aterials 4anagement and ,ales and Distrib%tion (or3 o -oods recei&t and iss%e o Incoming and o%tgoing invoices o P!ysical inventory 5stocktaking6 o Invoicing

,ome De(a%lt Doc%ment 1y&e In ,AP Descri&tion Doc%ment 1y&e Reverse Doc%ment1y&e Acco%nt ty&es

Asset Posting Acco%nting Doc%ment De&reciation Pstngs C%stomer Doc%ment C%stomer Credit 4emo C%stomer Invoice C%stomer Payment 0endor Doc%ment 0endor Credit 4emo 0endor Invoice 0endor Payment Invoice - -ross Invoice - Net illing Doc:1rans(er -/. Acco%nt Doc%ment -/. Acco%nt Posting Cas! Doc%ment Ad;%stment Doc%ment Data 1rans(er -oods Iss%e -oods Recei&t Inventory Doc%ment -oods Iss%e/Delivery Net -oods Recei&t Payment Posting ank Reconciliation Payment by C!eck Payment Clearing

AA A A2 DA DDR D8 7A 77R 78 R9 RN R0 ,A , ,7 ,< <9 =A =9 =I =. =N 8P 8R 8, 80 80 8P ,A 7A 7A DA DA

A A2 DA D, AD4, DA A74, 7A 7A A7, R9 RN A A A ,<

AD74, AD74, A, D,

D, A74, A74, A74, A74, AD, AD74, , , , AD74, A4, A4, A4, A4, A4, AD74, D7, D7 AD74,

8R

Accounting Entries for MM, FI related

SALES AND DISTRIBUTION INVOI E !ENERATION" In#oices $ill %e generated at t&e S'elters and stoc( )oints* T&e accounting entries for t&e sale of goods dis)atc&ed $ill flo$ fro' t&e Sales in#oice generated in SA+ Sales and Distri%ution 'odule* T&e follo$ing entries s&all %e )assed* a, DOMESTI SALE Customer Account Dr Revenue Cr Excise Duty Payable Cr Sales Tax Payable (local or central) Cr Note: As mentioned above in the ! document" #hich is created in the bac$%round" the SD invoice number shall be ca&tured' (o#ever as &er the current accountin% &rocedure the accountin% entry &assed is as )ollo#s: * +,: Customer Account Dr Revenue Cr Excise Duty -illed Cr Sales Tax Payable (local or central) Cr .,!!N: Excise duty &aid a/c Dr Excise duty &ayable a/c Cr %, E-+ORT SALES There have been very )e# ex&ort transactions in the &ast' SAP system #ill be desi%ned to handle ex&ort business' Ex&orts are mainly )rom the mines and #ill be handled at the mines" ho#ever the documentation &art #ill be ta$en care at the (ead 0))ice' The accountin% entry is:

Customer Account Dr Revenue (Ex&orts) Cr

The reali1ation o) ex&ort sales #ill be directly credited to the ban$' The accountin% entries #ill be as )ollo#: -an$ Dr Customer Cr Exchan%e luctuation Dr/ Cr Rebates/Discounts Dr Customer Cr DEBIT MEMOS Debit 2emos shall be issued in case o) &rice di))erence" sale tax di))erence and interest on usance &eriod and overdue &ayments' The accountin% entries )or t#o &ossible scenarios are as )ollo#s: Price 3nderchar%ed:

Customer Account Dr' Revenue Cr' Sales tax &ayable Cr' Sales tax underchar%ed Customer Account Dr' Sales tax ad4ustment Cr' !nterest on delayed &ayments/usance &eriod and other char%es Customer Account Dr' !nterest 0thers Cr' !n case o) (56 a com&lete retirement or a &artial retirement o) asset is done' The system uses the asset retirement date to determine the amount to be char%ed o)) )or each de&reciation area' The existin% accountin% &olicy is to &rovide de&reciation )or the )ull 7uarter in #hich the asset is sold/discarded" recommended that the de&reciation be &rovided )rom the date o) ac7uisition on &rorata basis ' SALE OF S RA+ The sale o) scra& (non8stoc$) shall be ma&&ed as a direct manual ! entry' The customer #ill be created as a ! customer' No 6o%istics module #ill be involved in the &rocess' A ! !nvoice #ill be &re&ared )or the sale o) scra& #ith the )ollo#in% entries: Customer Dr Sale o) Scra& Cr Excise Duty Payable Cr

ADVAN ES FROM USTOMERS Advances are received )rom the customers a%ainst delivery' These advances #ill be recorded in a s&ecial %eneral led%er account' The accountin% entry )or the same #ill be:

-an$ Account Dr Advance Customer Payments Cr These advances #ill be later on ad4usted a%ainst the invoices raised on the customers' Advances can be ad4usted a%ainst more than one invoice at the time o) clearin% o) the invoices a%ainst advances' Ad4ustment o) Advances: Customer Account Cr Advance Customer Payments Dr A )inancial document #ould be created )or each -an$ 9uarantee received and this document number #ill be re)erred to in the Sales 0rder #hich #ould then monitor the value and the validity o) the o) the -an$ 9uarantee instrument #ise #hile doin% the billin%' The letter o) credit /-an$ %uarantee %iven #ill be recorded as a noted item' MATERIAL MANA!EMENT !OODS RE EI+T -ased on the Purchase order and the :uantity actually received 9oods Recei&ts (9R) #ill be done' -ased on the 9R done the )ollo#in% accountin% entry #ill be &assed in the inancial Accounts Accountin% Entry )or 9oods recei&t: Stoc$/!nventory account Dr 9R/!R account Cr rei%ht clearin% account Cr Accountin% Entry on invoice veri)ication o) su&&lier:

9R/!R Dr *endor account Cr INVO IE RE EI+T Accountin% Entry on invoice veri)ication o) )rei%ht vendor rei%ht clearin% account Dr rei%ht *endor account Cr

SA+ Transaction ode" R2/P2 Stoc$ Account Dr 9R/!R Account Cr rei%ht Clearin% Account Cr REDIT MEMO" E- ISE INVOI E VERIFI ATION 0n recei&t o) the excise invoice cum %ate &ass the )ollo#in% entry #ill be &assed R9 ;< A / R9 ;< C Part ; Account Dr Cenvat Clearin% Account Cr INVENTOR. A OUNTIN! ENTRIES

All the !nventory transactions #ill loo$ )or the valuation class and the corres&ondin% 9'6' Accounts and &ost the values in the 9'6 accounts' or Exam&le: durin% 9oods Recei&t Stoc$ Account 8 Dr 9/R !/R Account 8 Cr rei%ht Clearin% account 8 Cr 0ther ex&enses &ayable 8 Cr Durin% !nvoice *eri)ication 9/R !/R Account 8 Dr *endor 8 Cr =hen the 9oods are issued to the Production 0rder the )ollo#in% transactions ta$es &lace: Consum&tion o) Ra# 2aterials 8 Dr Stoc$ A/c 8 Cr =hen the 9oods are received )rom the Production 0rder the )ollo#in% transactions ta$es &lace: !nventory A/c 8 Dr Cost o) 9oods Produced 8 Cr Price di))erence 8 Dr/Cr (de&endin% on the di))erence bet#een standard cost and actual cost) =hen the 9oods are dis&atched to customer throu%h delivery the )ollo#in% transactions ta$es &lace: Cost o) 9oods Sold 8 Dr !nventory A/c 8 Cr

=hen the 9oods are issued to a Cost Center or char%ed o)) a%ainst ex&enses the )ollo#in% transactions ta$es &lace: Re&airs and 2aintenance 8 Dr !nventory A/c 8 Cr =hen the 9oods are stoc$ trans)erred )rom one &lant to another" the )ollo#in% transactions ta$es &lace: Stoc$ A/c 8 Dr (Receivin% location) Stoc$ A/c 8 Cr (Sendin% location) Price di))erence 8 Dr/Cr (due to any di))erence bet#een the standard costs bet#een the t#o locations) =hen the stoc$s are revalued" the )ollo#in% transactions ta$es &lace: Stoc$ A/c 8 Dr/Cr !nventory Revaluation A/c 8 Cr / Dr =hen the =or$ in Pro%ress is calculated the )ollo#in% transaction ta$es &lace: =or$ in Pro%ress A/c 8 Dr Chan%e =!P A/c 8 Cr Physical veri)ication /shorta%es and excesses : Shorta%es/excesses on authori1ations shall be ad4usted usin% the &hysical inventory count transaction' Transaction ode" FI O" .ournal Entry Accrual/De)erral Recurrin% Entry Account Payable Account Receivable ixed Assets -an$ Account CE-A*T

SALE OF ASSETS Accountin% entry )or sale o) Asset to customers: Customer Account Dr Asset Sale Cr Accumulated De&reciation Dr 6oss on Sale (i) a&&licable) Dr Asset Sale account Dr Asset account Cr Pro)it on sale (i) a&&licable) Cr Note" !n case o) any Sales Tax /Excise duty a&&licable )or this transaction" SAP #ill calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is &osted to the 96 Account (Sales Tax Payable) Accountin% entry )or sale #ithout a customer: Accumulated De&reciation Dr 6oss on Sale (i) a&&licable) Dr Asset Sale account Dr Asset account Cr Pro)it on sale (i) a&&licable) Cr Accountin% entry )or scra& Accumulated De&reciation Dr 6oss on Sale o) Assets Dr Asset account Cr ENVAT E- ISE ENTRIES" ,' 0n recei&t o) material (2!90) !nventory 9R/!R Clearin% Account DR CR ,+++'++ ,+++'++

;' At the time o) Postin% excise invoice (.,!E>?P) i) i) it is ra# material DR R9;< Part !! Postin% CR Cenvat Clearin% Account ,@+'++ ,@+'++

ii) i) it is ca&ital %oods DR CEN*AT on hold Account DR R9;< Part !! Postin% CR Cenvat Clearin% Account A+'++ A+'++ ,@+'++

iii)#hen ma$in% trans)er &ostin% (.;!A) DR R9;< Part !! Postin% CR CEN*AT on hold Account A+'++ A+'++

<' At the time o) !nvoice *eri)ication (2!R0) DR 9R/!R Clearin% Account DR Cenvat Clearin% Account CR *endor B' Excise Duty &ayable on dis&atches DR Excise Duty Account CR Excise Duty 6iability Account C' Advance &ayment o) Excise Duty ( 8+;) DR P6A 0n (old Account CR -an$ @' Creation o) TR@ Challan (.,!() a)ter De&osit DR P6A Account CR P6A 0n (old Account A+'++ A+'++ A+'++ A+'++ ;B+'++ ;B+'++ ,+++'++ ,@+'++ ,,@+'++

D' Ad4ustment o) Duty liability 3tili1ation (.;!3) DR Excise Duty 6iability Account CR R9;< Part !! Postin% CR P6A ;B+'++ ,@+'++ A+'++

Transaction ode" BAN/IN! TRANSA TION FINAN IAL A Settlement 0) Tour Advances Domestic/ orei%n ,) Settlement o) advance #ill be done by the Accounts De&artment based on the Travel Ex&ense Statement submitted by the em&loyee" #hich is a&&roved by the Concerned De&artment (ead' ;) Ex&enses Account Cash/-an$ Account Em&loyee Advance Account Cash/-an$ Sub led%er Account DR DR (i)" re)und) CR CR (i)" &ayable) OUNTIN! ENTRIES "

<) -an$in% 0&erations 8 2aintenance 0) -an$ 2aster B) A (ouse -an$ is a combination o) a -an$ and a -ranch' Account id is the account number' A house ban$ can have multi&le account !Ds'' There could be a main account as also &ayable account" #hich #ill be de)ined as se&arate account ids' 9eneral 6ed%er accounts have to be created )or each combination o) a house ban$ and account !D' The ban$ master details are to be &rovided by (56' C) 9eneral 6ed%er accounts have to be created )or each account !D in the house ban$' -an$ Account 2aster data #ill be maintained by the inance De&artment centrally' @) Each house ban$ and account !D combination shall have one main %eneral led%er account and several sub accounts mainly based on broad transaction ty&es' These sub accounts are necessary to )acilitate automatic ban$ reconciliation &rocess in R/< system' Ban( Accounting D) The accountin% entries #ill be %enerated automatically accordin% to the &ostin% rules attached to the Transaction ty&e' The )ollo#in% accountin% entry is &assed by the system in res&ect o) che7ue de&osit on account o) collection )rom domestic customers' -an$ che7ue de&osit account Customer account Debit Credit

A) !n this case" a ban$ sub account is selected based on the transaction code entered by the user' The customer account is cleared i'e' invoice is cleared a%ainst the recei&t' !n res&ect o) any other de&osits" the relevant accounts to be credited #ill de&end on the nature o) transaction' E) Payment a%ainst bills )or collection' -ased on the ban$ advices )allin% due on a &articular day one &ayment advice is made debitin% the vendors and creditin% ban$' &e0ue De)osit 1 usto'er Recei)ts ,+) All che7ues received )rom customers shall be accounted at the &oint o) recei&t' The entry &osted shall be

-an$ Sub account Dr Customer Account Cr &e0ue De)osit 1 Ot&er T&an usto'er Recei)ts ,,) All other recei&ts #ill be accounted throu%h the !ncomin% Payment Transaction o) the Accounts Receivables module' &e0ue Bouncing 2 Ot&er T&an usto'er Recei)ts ,;) -ased on the in)ormation o) che7ue bounced )rom the -an$" the accounts De&artment #ill &ass accountin% entries )or the che7ue that have been bounced' The &rocedure to handle bouncin% o) a che7ue has been discussed under the )ollo#in% ,<) Reset the clearin% document F !) the document has been cleared i'e' an o&en outstandin% item has been cleared a%ainst an incomin% recei&t" then the clearin% document has to be reset to its ori%inal status o) o&en item' This &rocess is $no#n as reset o) cleared document' ,B) Reverse the entry &assed )or che7ue de&osited earlier F 0nce the document has been reset it #ill be reversed' The )ollo#in% accountin% entry #ill be &assed' ! Customer DR

-an$ che7ue de&osit account CR ,C) !n case o) che7ues bein% dama%ed #hile &rintin%" the concerned che7ues no' has to be voided and the &ayment #ill be rer Ban( Reconciliation ,@) The -an$ reconciliation &rocess is based on the entries &assed throu%h the -an$ sub account and main account' The &rocess is de&endent on the -an$ Statement received )rom the -an$ that #ill be entered into SAP' Accountin% rules are to be de)ined )or each transaction ty&e and &ostin% rule )or &ostin% accountin% entries as &er ban$ statement' -an$ statements to be u&loaded into SAP' ,D) -an$ 2ain account balance is the actual balance as &er the ban$ statement #hereas the -an$ sub accounts denote the reconciliation items' These sub accounts sho# those entries" #hich #ill )lo# )rom the sub account #hich are not cleared in the ban$ statement' ,A) Addin% or subtractin% the -an$ sub accounts #ill hel& in &re&arin% the -an$ reconciliation statement' ,E) The )ollo#in% scenarios #ould ex&lain the reconciliation &rocess: 8Che7ue received )rom customer' 8Che7ue issued to vendors' 8Che7ue received )rom 0ther than Customers' 8Direct Debits in -an$ Statement' 8Direct Credits in -an$ Statement' 8 und Trans)er bet#een -an$ Accounts'

&e0ue Recei#ed Fro' usto'er ;+) Accountin% entry at the time o) che7ue de&osit entry -an$ Che7ue de&osit account Debit Customer Credit ;,) Accountin% entry a)ter che7ue has been cleared in the -an$ statement 2ain -an$ account Debit -an$ Che7ue de&osit account Credit ;;) The clearin% criteria )or u&datin% the ban$ main account and ban$ sub account #ill be amount and document number #hich #ill be ca&tured in the allocation )ield o) the ban$ sub account' The items" #hich have not been cleared in the ban$ statement" #ill remain o&en in the ban$ sub account and #ill )orm &art o) the ban$ reconciliation statement' &e0ue Issued To Vendors ;<) Accountin% entry at the time o) che7ue issue *endor account Debit -an$ che7ue &ayment account Credit ;B) Accountin% entry a)ter che7ue has been &resented in the -an$ -an$ che7ue &ayment account Debit 2ain -an$ account Credit ;C) The clearin% criteria used )or u&datin% vendor account and -an$ che7ue &ayment account #ill be amount and che7ue number' The che7ues &resented to the ban$ and are cleared are trans)erred to the ban$ main account' The remainin% che7ue issued #ill )orm &art o) the ban$ reconciliation statement' Direct De%it In Ban( ;@) Direct debit instructions #ill be %iven to the ban$ )or exam&le" 6C &ayments or certain ban$ char%es are directly debited in the -an$ Statement' !n this case accountin% entry is &assed only a)ter the entry is &assed in the ban$ statement' *endor / Ex&ense Account Debit -an$ clearin% account Credit Direct redit In Ban(

;D) Customer recei&ts are sometimes directly credited in -an$' E'%' ex&ort recei&ts' !n this scenario accountin% entry is &assed only at the time o) ban$ statement entry' The )ollo#in% accountin% entry is &assed -an$ clearin% account Debit Customer account Credit 2ain -an$ A/c Debit -an$ Clearin% A/c Credit Ban( Fi3ed De)osits ;A) (56 has a &ractice o) convertin% any amount above Rs' , crore in its 2ain ban$ account" to a )ixed de&osit sub4ect to a minimum o) Rs' ,'+, crores' The DR number can be )illed in one o) the )ields available in the accountin% document' INVOI E !ENERATION !nvoices #ill be %enerated at the Smelters and stoc$ &oints' The accountin% entries )or the sale o) %oods des&atched #ill )lo# )rom the Sales invoice %enerated in SAP Sales and Distribution module' The )ollo#in% entries shall be &assed Customer Account Dr Revenue Cr Excise Duty Payable Cr Sales Tax Payable (local or central) Cr Note: As mentioned above in the ! document" #hich is created in the bac$%round" the SD invoice number shall be ca&tured' (o#ever as &er the current accountin% &rocedure the accountin% entry &assed is as )ollo#s :8 Customer Account Dr Revenue Cr Excise Duty -illed Cr Sales Tax Payable (local or central) Cr Excise duty &aid a/c Dr Excise duty &ayable a/c Cr E-+ORT SALES There have been very )e# ex&ort transactions in the &ast' SAP system #ill be desi%ned to handle ex&ort business' Ex&orts are mainly )rom the mines and #ill be handled at the mines" ho#ever the documentation &art #ill be ta$en care at the (ead 0))ice' The accountin% entry is: Customer Account Dr Revenue (Ex&orts) Cr The realisation o) ex&ort sales #ill be directly credited to the ban$' The accountin% entries #ill be as )ollo#: -an$ Dr Customer Cr Exchan%e luctuation Dr/ Cr The accountin% entries #ill be: Rebates/Discounts Dr Customer Cr DEBIT MEMOS

Debit 2emos shall be issued in case o) &rice di))erence" sale tax di))erence and interest on usance &eriod and overdue &ayments' The accountin% entries )or t#o &ossible scenarios are as )ollo#s: Price 3nderchar%ed: Customer Account Dr' Revenue Cr' Sales tax &ayable Cr' Sales tax underchar%ed Customer Account Dr' Sales tax ad4ustment Cr' !nterest on delayed &ayments/usance &eriod and other char%es Customer Account Dr' !nterest 0thers Cr' !n case o) (56 a com&lete retirement or a &artial retirement o) asset is done' The system uses the asset retirement date to determine the amount to be char%ed o)) )or each de&reciation area' The existin% accountin% &olicy is to &rovide de&reciation )or the )ull 7uarter in #hich the asset is sold/discarded" recommended that the de&reciation be &rovided )rom the date o) ac7uisition on &rorata basis ' Accountin% entry )or sale o) Asset to customers: Customer Account Dr Asset Sale Cr Accumulated De&reciation Dr 6oss on Sale (i) a&&licable) Dr Asset Sale account Dr Asset account Cr Pro)it on sale (i) a&&licable) Cr Note: !n case o) any Sales Tax /Excise duty a&&licable )or this transaction" SAP #ill calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is &osted to the 96 Account (Sales Tax Payable) Accountin% entry )or sale #ithout a customer: Accumulated De&reciation Dr 6oss on Sale (i) a&&licable) Dr Asset Sale account Dr Asset account Cr Pro)it on sale (i) a&&licable) Cr Accountin% entry )or scra& Accumulated De&reciation Dr 6oss on Sale o) Assets Dr Asset account Cr SALE OF S RA+ The sale o) scra& (non8stoc$) shall be ma&&ed as a direct manual ! entry' The customer #ill be created as a ! customer' No 6o%istics module #ill be involved in the &rocess' A ! !nvoice #ill be &re&ared )or the sale o) scra& #ith the )ollo#in% entries: Customer Dr

Sale o) Scra& Cr Excise Duty Payable Cr ADVAN ES FROM USTOMERS Advances are received )rom the customers a%ainst delivery' These advances #ill be recorded in a s&ecial %eneral led%er account' The accountin% entry )or the same #ill be: -an$ Account Dr Advance Customer Payments Cr These advances #ill be later on ad4usted a%ainst the invoices raised on the customers' Advances can be ad4usted a%ainst more than one invoice at the time o) clearin% o) the invoices a%ainst advances' Ad4ustment o) Advances Customer Account Cr Advance Customer Payments Dr A )inancial document #ould be created )or each -an$ 9uarantee received and this document number #ill be re)erred to in the Sales 0rder #hich #ould then monitor the value and the validity o) the o) the -an$ 9uarantee instrument #ise #hile doin% the billin%'The letter o) credit /-an$ %uarantee %iven #ill be recorded as a noted item' Accountin% Entry )or 9oods recei&t Stoc$/!nventory account Dr 9R/!R account Cr rei%ht clearin% account Cr Accountin% Entry on invoice veri)ication o) su&&lier 9R/!R Dr *endor account Cr Accountin% Entry on invoice veri)ication o) )rei%ht vendor rei%ht clearin% account Dr rei%ht *endor account Cr !OODS RE EI+T -ased on the Purchase order and the :uantity actually received 9oods Recei&ts (9R) #ill be done' -ased on the 9R done the )ollo#in% accountin% entry #ill be &assed in the inancial Accounts R2/P2 Stoc$ Account Dr 9R/!R Account Cr rei%ht Clearin% Account Cr E- ISE INVOI E VERIFI ATION 0n recei&t o) the excise invoice cum %ate &ass the )ollo#in% entry #ill be &assed R9 ;< A / R9 ;< C Part ; Account Dr Cenvat Clearin% Account Cr

t&e ste)s for integration of FI O $it& ot&er 'odules SD, MM etc* 4 Some basic in)ormation : FI1MM" T&e integration %et$een FI1MM &a))ens in T1code OB. * ,' =hen P0 is created : 8888 No Entry 88888 ;' =hen 9R is &osted !nventory Account dr (Transaction Gey -S> in 0-HC) To 9R!R account (T'Gey =R> in T8code 0-HC) <' =hen !nvoice is &osted 9R!R account Dr' *endor account Cr' B' Payment made to *endor *endor A/c Dr To -an$ Clearin% A/c Cr' Points to $no# : 2ovement Ty&es" Assi%nment o) 2ovement ty&es to T8$eys (T8code 02..)" *alue strin% (! also need some in)ormation on this) " 02=N and 02=- transactions' 888 There is a close inte%ration b/# ! I 22" actually document )lo#s )rom 22 to ! in the )ollo#in% areas such as" ,' 2ovement Ty&es: 3sed to enable the system to )ind the &rede)ined &ostin% rules determinin% ho# the accounts o) )inancial accountin% system are to be &osted I to u&date the stoc$ )ields in the matrl master data'(9oods Recei&t" 9oods !ssue" etc) ;' *aluation Class: Assi%nment o) material to %r& o) %l account" used to determine the %l accounts that are u&dated as a result o) %oods movement' <' Transaction/Event $ey: 3sed to control the stora%e or )ilin% o) documents I assi%nment o) documents'3sed to di))ereniate b/# various transactions such as %oods movement tht occur in inventory' B' 2aterial Ty&e:

Each material should assi%n mtrl ty&e in mtrl master record used to u&date #hether chan%es made in 7ty are u&dated in material master record I chan%e in value also u&dated in stoc$ account' FI1SD Integration" T&e integration is done in T1code V/OA ,' Sales 0rder Created 888No Entry888 ;' P9! done (9oods issue) Cost o) 9oods Sold Dr (Con)i%ured in 0-HC 9-- T8Gey) To !nventory Account <' -illin% document released to Accountin% Customer Account Dr' To Sales Revenue Account (ER6 T8$ey in Pricin% &rocedure) Note : The 96 account is assi%ned to this ER6 in *G0A B' Payment Received -an$ Clearin% A/c Dr Customer A/c Cr' Points to Gno# : 9ood to understand the &ricin% &rocedure and ho# the di))erent transaction $eys are used li$e ER6" ERS etc'