Gross and Net invoice

[Former Member]

How does the net invoice differs from gross invoice?

How the exchange rates are maintained and where they are maintained?

Edited by: Ashutosh Kul on Jan 13, 2008 9:04 PM

[Former Member · Accepted solution]

With OB08 T code you can mainatin exchange rates.

Gross Invoice = Value of Item + Taxes.

Net Invoice = Value of item = Gross Invoice - Taxes.

Thanks,

Biren Agnihotri

[Former Member]

Dear Ashutosh,

Gross Posting:

If you post the gross amount of an invoice, the system ignores the cash discount when you enter invoice;it post the cash discount amount to "cash discount" account at the time of payment.

Net posting: If you post the net amount of an invoice,the system pst the cash discount clearing account to the stock or cost account.This means the system only post the amount reduced by the cash discount amount to stock account/cost account.The cost account is cleared at the time of payment.

Whether an invoice is posted gross or net depends on the DOCUMENT TYPE.

In price determination subtotal is used if you want to make a total of various pricing conditions for Ex to calculate Net Price a subtotal of Gross Price + Discount + Surcharge will be done & Net Effective price will be Net price + Delivery cost + tax for ex.

Currency setting:

To enter an invoice in foreign currency you must do following setting in the system

1. You must define the currency you are using to enter the invoice.

2. You must configure an exchange rate for the given currency & the local currency in customizing.Ypu can define diffrent exchange rate for diffrent time period.

I hope this will give you idea on both terms.

Reward if useful,

Vivek Maitra

[Former Member]

I belive that you are talking about RE and RN which stands for

Gross and Netposting.

For RE (Gross posting), Cash Discount Amount does not get posted to Stock acoount however in case of Net Posting , Cash Discount amount gets credited to stock Account.

Reward if you find it useful.

Thanks