What Should Be My Accounting Entry in Procurement

8/2/2019 What Should Be My Accounting Entry in Procurement

1/21

What should be my accounting entry in procurement?

For Domestic Procurement of Raw Material

During GR

Material Stock Dr.

GR/IR clearing Cr.

During Excise Invoice Credit

Cenvat Account Dr.

Cenvat Clearing Cr.

During Invoice Verification

Cenvat Clearing Dr.

GR/IR Clearing Dr.

Vendor Payable Cr.

For Domestic procurement of Capital Goods

During GR

Material Stock Dr.

GR/IR clearing Cr.


Cenvat Account Dr. (50%)

Cenvat On-hold Dr. (50%)

Cenvat Clearing Cr.


Cenvat Clearing Dr.

GR/IR Clearing Dr.

Vendor Payable Cr


2/21

Subsequent of Capital Goods

Cenvat Account Dr. (50%)

Cenvat On-hold Cr. (50%)

For Import Procurement of Raw Material

During Customs Duty Clearing invoice

Custom Clearing Dr.

Custom Payable Cr.

During GR

Material Stock Dr.

GR/IR clearing Cr.


Cenvat Account Dr.

Custom Clearing Cr.


GR/IR Clearing Dr.

Vendor Payable Cr.

For Excise Duty Credit of Raw Material without PO

Cenvat Account Dr.

Cenvat Clearing Cr.

For Excise Duty Reversal through Excise JV

Cenvat Clearing Dr.

Cenvat Account Cr.


3/21

What should be my accounting entry when the goods are issued through MM and excise invoice is

created (J1IS & J1IV)?

During Excise Invoice Creation

Cenvat Suspense Account Dr.

Cenvat payable Cr.

For TR6C Challan

PLA Account Dr.

PLA on hold Account Cr.

During Fortnightly Utilization

Cenvat payable Dr.

Cenvat Account Cr.

PLA Account Cr.


4/21

Note: Cenvat Suspense Account should be cleared appropriately using FI JV's.

What should be my accounting entry in subcontracting reversal / Recredit?

For Subcontracting Challan Reversal

Cenvat Reversal Dr.

Cenvat Account Cr.

For Subcontracting Challan Recredit

Cenvat Account Dr.

Cenvat Reversal Cr.

What should be my accounting entry in SD ?

For Factory Sale


5/21

During Billing Document

Customer Account Dr.

Sales Account Cr.

Cenvat Suspense Account Cr.



Cenvat payable Cr.

For TR6C Challan

PLA Account Dr.


6/21



Cenvat payable Dr.

Cenvat Account Cr.

PLA Account Cr.

For Stock Transfer through SD

No Accounting entries for Performa Billing Document




7/21

Cenvat payable Cr.

For TR6C Challan

PLA Account Dr.



Cenvat payable Dr.

Cenvat Account Cr.

PLA Account Cr.

Note: Cenvat Suspense Account should be cleared appropriately using FI JV's.

Posted by SAP 1 comments

Accounting Entries related to MM transactions...


8/21

Labels: SAP FI, SAP FICO, SAP MM

Initial stock entry:

Movement type - 561(Receipt per initial entry of stock balances into unrestricted-use)

TCODE - MB1C

FI Document Type - WA

89

Raw material

BSX

S

91


9/21

Initial Stock entry

GBB

BSA

H

Physical inventory differences:

Movement type 702 (Goods Issue Physical Inventory difference) this is triggered because of the

movement type 102, which is given while calculating the difference INV: for expenditure/income from

inventory differences

TCODE - MI07 (MI01 & MI04)

FI Document Type - WI

81

Inventory differences G/L


10/21

GBB

INV

S

99

Raw material

BSX

H

Goods Issue to Production Order:


11/21

Movement type - 261 (Consumption for order from warehouse) VBR: for internal goods issues (for

example, for cost center)

TCODE - MB1A

FI Document Type - WA: Goods Issue

81

Raw material Consumption

GBB

VBR

S

99

Raw material


12/21

BSX

H

In case Movement type given is 201(Consumption for cost center from warehouse), at the time of MB1A

system asks for the COST CENTER & GENERAL LEDGER. Here, the account determination happens

directly from MB1A and not from the OBYC. Accounting entry will be same as above except the 'Raw

material Consumption'; it triggers whatever the GL given.

Goods Issue / Delivery: SD

Movement type - 601 (Customer delivery) VAX: for goods issues for sales orders without account

assignment object (the account is not a cost element)

TCODE - VL02

FI Document Type - WL: Goods Issue/Delivery

81

Mater. consumed/trading goods without cost element COGS


13/21

GBB

VAX

S

99

Finished Goods

BSX

H

Goods Receipt: FG PP

Movement type - 101 (Goods Receipt) GBB-AUF: for goods receipts for orders (without account

assignment) and for order settlement if AUA is not maintained


14/21

TCODE - MB31 Goods Receipt for Production Order

FI Document Type - WE: Goods Receipt

89

Finished Goods

BSX

S

91

Inventory change

factory output COGP

GBB


15/21

AUF

H

Goods Receipt: RM MM

Movement type - 101 (Goods Receipt)

TCODE - MIGO Goods Receipt for Purchase Order


89

Raw Material

BSX


16/21

S

96

GR / IR Clearing account

WRX

H

Invoice Receipt: RM MM

Movement type - 101 (Goods Receipt)

TCODE - MIGO Goods Receipt for Purchase Order


86


17/21

GR / IR Clearing account

WRX

S

31

Vendor account

KBS

H


18/21

KBS is without any account determination and posting keys are 81 & 91. It triggers when there is no

material is assigned in the PO at that time.

WRX In case of any posting required without material, account determination should be without

valuation class.

If price changed at the time of IR, then based on the difference in the material price system posts

amounts to particular material account and not to the price difference account (this is related to the

materials with price control V).

Material Valuation: MM

Movement type -

TCODE - MR22 Dr/Cr Material material valuation (below given calculation) & MR21: Price Change

(Difference amount posts to the material account and calculation is ((New price Old price) * Quantity)

FI Document Type - PR: Price change

Below entry in case of price increase

89

Raw material

BSX


19/21

S

93

Material Valuation

UMB

H

Calculation - {Current Stock Value + (Amount given in MR22 / Quantity given in MR22 * Cr. Quantity)}

Billing Document: SD

TCODE - VF01 Billing - VF11 Cancel Billing

FI Document Type - RV: Billing document transfer - RW: Reversal of billing


20/21

01

Customer account

BSX

S

50

Sales Revenue account

UMB


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H

Documents

What Should Be My Accounting Entry in Procurement