Accounting Entery in sap

 

P2P cycle accounting entries

When we receive the goods in the plant inventory will increase and Liability will increase. Hence Inventory account will be debited while the GR/IR clearing account will be credited as we don’t know as of now who is the person who sold us the goods.

GOODS/INVENTORY/GR A/C.......DR    

GR/IR A/C....................................CR

(being goods recvd),

When we receive the invoice we now know who had send the goods. Hence clearing liability from GR/IR Goods receipts invoice receipts account to the actual vendor liability account.

GI/IR A/C ……...DR

TAX A/C ………..DR

VENDOR (ACCOUNTS PAYABLE) A/C....CR

When we do the payments the liability is decreased and our cash is also decreased.

VENDOR A/C ……………………....DR

BANK CLEARING / CASH A/C...CR

If we use an intermediary bank account then this asset account is increased and the actual bank account is decreased.

BANK CLEARING A/C…….DR

BANK A/C.......................CR

O2C Order to Cash accounting entries

The integration of O2C with FI starts from the delivery process when material is moved for deliveries.

Delivery accounting entries as inventory decreases

COST OF GOODS SOLD A/c ...Dr

STOCK A/c ….……………………...CR

Here COGS comprises of all cost for manufacturing the product to picking packing cost and discounts.

Ones the goods are delivered we send an invoice in the form of a billing document to the customer. The customer is a personal account and receives hence it will be debited while the revenue account is nominal and increases the credit account.

CUSTOMER A/c ……….DR

DISCOUNT A/c…………DR

SALES REVENUE A/c…CR

TAX ACCOUNT…..…….CR

EXCISE/DUTY A/c…….CR

When we receive a payment from the customer through a bank doing Electronic Banking Statement upload FF_5 or we receive an amount from the customer F-28. As cash/bank account increases.

BANK ACCOUNT A/c ……… DR

CUSTOMER A/c ………………CR

The configuration for these settings are done under OBYC tcode where a transaction key is assigned which finds depending on the movement type and valuation class or on the basis of condition type and access sequence which GL account should be automatically picked for journal entries.  

Product Costing Accounting Entries

1. Material received against purchase orders (Raw Material). Asset and liability both have increased in this case. (MIGO)

Inventory / Raw Material Stock A/c …............. DR   (BSX Key)

GR/IR Clearing A/c …………………………....CR   (WRX Key)

Entries for Payment to vendor according to P2P.

2. Material Consumption (Raw Material) Goods issue to Production order (MB1A)

Raw Material Consumption Stock A/c ……………...…..DR

Raw Material Inventory Stock A/c ……………………...CR

3. Activity is performed on this stock to manufacture the goods. Finished Material

Machine Allocation A/c …….DR

Labor Allocation A/c   ……...DR

Overhead Allocation A/c …..DR

Cost Center A/c ………………..CR

4. Goods Receipt from Production Order to Inventory Stock (Goods receipt WE) (MB31)

Finished Goods A/c ……….DR

Change in Inventory A/c….CR

PRICE DIFFERENCE A/c …..DR/CR depending on the difference

5. In case of Work In Progress Settlement

WIP Balance Sheet A/c ……………………DR

WIP Profit Loss A/c …………………………CR

The status of the order determines whether WIP calculation creates or cancels the work in process. If the order has the status REL (released), the system can calculate work in process.

Once the order receives the status DLV (Delivered) or TECO (Technically completed), the work in process calculated in a previous period is canceled.

6. WIP Cancellation if the order status is DLV or TECO

WIP Profit Loss A/c …………………………DR

WIP Balance Sheet A/c ……………………CR

7. Goods Issue for Production Order to Inventory for stocks (Goods Issue WA) Tcode - MB1A

Consumed Finished Goods A/c ….......…..DR

Finished Goods A/c ………………………CR

8. In case of direct Dispatch Delivery of goods to customer and then you have the normal O2C Process.

Cost of Goods Sold A/c ………………….DR

Inventory A/c ………………………………..CR

In House Cash Management Accounting Entries

The basic usage of IHC is to minimize external bank transaction thus saving transaction costs, utilizing available funds in a centralized treasury and add to efficiency of liquidity management. With IHC it becomes easier to manage your intra group and external payment transactions in an effective manner avoiding associated risks. Consider the trigger of Business Partners delivering goods (Vendor) and sending an invoice to the company.

The sap presented solution works along the following lines

• There are different unique independent companies (subsidiaries) which have their own interaction systems.
• The head office has a main bank called as the In House Cash Center.
• Account management in the IHC Main is done via IDoc link to FI.
• IHC manages all the current a/c of its subsidiaries.

For intercompany payments

Company COMP01 does the payment to COMP02 through the In House Cash Center. The In House Cash Center posts the payment to relevant accounts in both these company accounts and sends back the bank statements as well.All the data transfer is managed via IDoc (PAYEXT for payment order and FINSTA for bank statements)

• COMP02 sends invoice

EXPENSE OR GR/IR ACCOUNT A/c ….DR

IHC COMP02 A/c …………………………...CR

Payments using F110 where the company COMP01 pays the invoice amount to the COMP02. The F110 record posts to the clearing account in IHC. The PAYEXT IDoc is generated and sent to the IHC. F111 can be used to perform the payment requests that are generated.

IHC SUSBSIDIARY CLEARING COMP02 A/c …………………..…DR

IHC SUSBSIDIARY CLEARING COMP01 A/c ….………………....CR

IHC does the payment job to company 02 which in this intercompany is the vendor to the company 01 and sends an FINSTA or bank statement

COMP01

IHC MAIN COMP01 A/c ……………….…..…DR

IHC SUSBSIDIARY CLEARING COMP02 A/c ….………………....CR

COMP02

IHC SUSBSIDIARY CLEARING COMP01 A/c ….………………....DR

IHC MAIN COMP02 A/c ……………………....CR

 

Payments order generated by IHC in form of FINSTA can be accessed in the payment browser transaction code IHCO. The order contains two payment items as pointed out above one which debits the ordering party and one which credits the payment recipient. Transaction FEBP can then be used to create these postings.

Central Outgoing Payments with In-House Cash

Several currencies are used for payments to suppliers by the companies under a group. The central payments features allows to combine these payments and creates a centralized payment process execution mechanism. In House cash handles all the payments of its subsidiaries to the external world.

EXTERNAL VENDOR sends goods and invoices COMP01

EXPENSE OR GR/IR ACCOUNT A/c ….DR

IHC BUSINESS PARTNER A/c …………………………...CR

Payments using F110 where the company COMP01 pays the invoice amount to the external Vendor. The F110 record posts to the clearing account in IHC. PAYEXT IDoc is generated and sent to the IHC and with F111 these payment request instructions to the IHC can be viewed.

IHC BUSINESS PARTNER A/c …………………..…DR

IHC SUSBSIDIARY CLEARING COMP01 A/c ….………………....CR

IHC does the payment job to external vendor after netting or taking into consideration various currencies and sends an FINSTA or bank statement back to the COMP01

IHC MAIN COMP01 A/c ……………….…..…DR

EXTERNAL VENDOR A/c ….………………....CR

IHC SUSBSIDIARY CLEARING COMP01 A/c….DR

IHC MAIN COMP01 A/c ……………………....CR

 

Auc Asset settlement through internal order?

it is possible. You can settle AUC in two ways

1. through internal order (KO88)

2. Through distribution and settlement (AIAB and AIBU)

The major difference between the two is that in case of Internal Order you can establish budgets in the Internal Order which is Control the costs. But in case of direct posting to the AUC, you would not be able to control the cost.

In the Internal Order scenario all the cost is first pooled to the Order and then settled to the Asset at regular intervals. Where as in case of the second method all the expenses are posted directly to the AUC and then it is being Distributed and settled to various Assets as required

1. Asset settlement thought internal order is general used for assets under construction. All costs are pooled in the internal order. Periodically or whenever wants the internal order is settled (within a fiscal year) i.e. the amounts in the internal order are capitalized.

First create an internal order (KO01), take object class as investment and give investment profile. Now system asks and creates one AUC account under asset class 4001.

Then create settlement rule (KO02) and release the order (control data tab) Post some amounts (like wages or non-production material) to internal order. Then come to KO88, first take the automatic settlement and run.

The accounting entry passed is

Asset under construction a/c Dr

To Wages a/c

If you want to complete the settlement to auc, then take now full settlement option and run then accounting entry passed is

Asset a/c Dr

To Asset under construction a/c

While doing settlement in KO88, you can give any settlement period, posting period and asset date, but all should be in the same fiscal year. If you want to close the order go to KO02, give order number and take control data tab and click on technical complete tab on the screen and save. Internal order will be closed.

2. If your AUC is under Asset class 4000

this auc account is created directly because of direct postings to AUC account. Posting are made through F-90 For example

AUC a/c dr

To vendor or bank account

Go to AIAB ---> Give distribution rule and go to AIBU --> Settle the asset

Entry passed is

Asset a/c Dr

To AUC a/c

Thanks

 

Balance in local currency issue

 Balance in local currency

My user create new bank G/L but forget to tick Only balances in local crcy in Account control in company code (FS00). so the result when the G/L XXXX01 using for transaction in foreign currency (USD), and want to clearing by tcode FEBAN error (use local currency in FEBAN) red light show up.

finally my user want to clearing manual by F-03 error showup

i think its because G/L XXXX01 not tick on balanced in local curency.

in G/L G/L XXXX01 there is already transaction, it is allowed to chance by tick on balanced in local curency ? is it will efect to all transaction that already happen to this G/L ?

Solution:-

1. Maintain the exchange rate accounts under OB09

or

2. Clear the documents in foreign currency

or

3. Check whether both documents are posted to same Business area /Business place.

Internal Order settlement issue - G/L account cannot be created as a cost element

 Pls check the below error i am getting while settling the internal order.

Gl account 40101001 is created as cost element.

Solution :-

Please go to transaction code OKG8 (define posting rules for settlement to FA), against the RA category WIPR/RUCR for your company code, under P&L account, you have assigned a GL account which is created as cost element, which is not correct.

The GL account that you assign under P&L account for RA should not be created as cost element. So, if no postings are done, delete cost element for the GL account. If already postings are done to the respective GL accounts, you are not allowed to delete its cost element. So, assign another GL account which is not created as cost element (it should be of P&L account nature only, not B/S account)

Cost Center budget upload:-

 Cost center budget upload:

A.      Define budget planning profiles

b.       Maintain Budget availability control profile for cost center

c.        Maintain categories for planning.

d.       Define budget check for categories

e.       Cost center budget planning changes tcode-KPZ2

 Configuration step:-

1.       Define budget planning profiles

It is applicable for annual value or period value

                  2.       Maintain Budget availability control profile for cost center

                                                    

3.       Maintain categories for planning.

4.       Define budget check for categories

5.       In FIORI Manage center master Tile - center master budget availability control should be active

6.       Cost center budget planning changes tcode-KPZ2

 

Cost Center Planning through EXCEL upload.

 

                                Excel Planning In Cost Center Accounting

what is cost center planning?

cost center planning includes entering plan figure of cost, activity, price for a particular cost center and particular planning period. later you can determine the variance from these figures when you come to compare these plan value with the actual cost incurred.  

KP26- Activity type/ price planning

KP64- Create Screen layout

KP34- Create planner profile

Purpose

This content was created to clarify how to use excel in cost center planning.

Overview

SAP offers the option to use Planning with Excel integrated into the user interface of the SAP System, this enable you to plan using the function of planning screen or Excel.

Planner profile

You can create or change a planner profile on transaction KP34. In this example I will create a planner profile to upload data in transaction
KP26 (Change activity Type/Price Planning: Initial Screen).

- Create a profile name and description in KP34

  
Transaction KP34

- Click on 'General Controlling'
- Here you will enter the area in Controlling where you carry out planning. I will use Cost centers: activities/prices on this example.

 
- Select the planning area and click on 'Layouts for Controlling'
 

 

Here you can choose an existing layout. To create a layout go to transactions KP65/KP75/KP85.
 
- To use excel select the Indicator for activating integrated Excel in planning.
- Click on 'Default parameters'
 

 
- Enter default planning data in the selection screen the click on overview
 

 
SAP will create a file layout and generate the file description
 

 
To save the layout press 'Save Excel Layout', you can click on 'generic file' button to create a generic file name.
 

 

Upload Data

Go to KP04 to enter your planner profile.

To upload data with excel at least one line of plan data must be entered manually using standard planning. Once this has been entered then excel planning may continue.  

 In KP26 go to Extras->Excel Planning->Upload

Transaction KP26

Select the file location and the file description and execute

 
If any error occurs or the upload finished without any errors will be presented on the next screen.

 

 
Clink on the line to see more information or errors if presented :
 

Report RFWT0020

 

Purpose

Program for Subsequent Creation of and Changes to Withholding Tax Data with Withholding Tax Rate 0%

The user posted 15 invoices he was not updated the withholding tax code for that line items now the user wants to update? then how?

It can be update by using program RFWT0020 using transaction code SE38.

Prerequisites

- The company code selected is relevant for withholding tax.

- The vendor selected is liable for withholding tax for a withholding tax category with a withholding tax rate of 0 %, or the customer is eligible for withholding tax deduction (in each case, only one withholding tax category is defined in the corresponding master records).

- Accumulation, central invoice, certification and formulas are not activated at the withholding tax type level (extended withholding tax),

- The corresponding withholding tax types are relevant for posting payments.

 

Example:

Transaction FK01 You will create the vendor example: 100298 not Withholding Tax relevant:

You will post an invoice without Withholding Tax data:

You create a WT code with the WT rate 0%, without a Formula:

And a relevant WT Type VA with the following settings:

You run transaction FK02 to insert the relevant WT type VA and WT code VA, into the vendor master data 100298.

Now You run the report RFWT0020, using the following details, first in Test mode then live

Following the result of the report:

The invoice will contain the WT data after running the report