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accounting entires in mm

Former Member
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dear friends,

recently I completed MM certification. In all my interviews i was asked what accounting entries are passed like for example in STO, subcontracting processes, etc, etc. and what accounts get posted.

it is usually expected to give answers in debit and credit format. i am not from FI and have only one year of functional experience.

Request experts from this forum to send me the list of all processes in purchasing where detailing the accounts what get posted along with debit and credit scenarios.

I feel from this i may pick the biz terminology in understanding the concepts.

thanks

Anita

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
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Dear Anita ,

Give mail id I wil send u a Accountin Doc.

Which contain SD/MM/FI intergartion with Dr/Cr

Regards

Biswajit

Former Member
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Dear Biswajit

thank you very much for your prompt reply.

Please mail me at :

anitasapmm@yahoo.com

thanks and regards

Anita

Former Member
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Dear Anita,

Check ur mail id.

Let me know How it goes.

Regards

Biswajit

Former Member
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Dear biswajit,

thanks for the document. I have gone through the document, what I am looking at is like for understanding as

GR IR

stock acc 100 (debit)

GR/IR a/c 100 (credit) 100 debit

vendor 100 credit

This is what is there in nornal GR/IR.

I will share with you some of the questions what I was asked where I was required to answer what type of account get credit or debit at particluar scenario.

1. in subcontarcting process at the time of GR what accounting entries are passed means what account gets debit or credit.

what accounts during subcontractor invoice receipt?

2. in STO process what are the account entries are there during billing, goods issue, etc.

please help on this.

thanks and regards

Anita

Former Member
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Hi Anita,

Please find the account entry details as below

1. in subcontracting process at the time of GR what accounting entries are passed means what account gets debit or credit.

In subcontracting at GR following Posting will happen

1 Finished Goods A/C will be Dr.

2 COGS (cost of goods Sale or Manufe) will be Cr.

3. GR/IR clearing will be Cr.

4. Raw materials A/C will be Cr.

5. Labour charges or subcontracting chages A/C will be Dr.

6. Consumptions A/c will be Dr.

what accounts during subcontractor invoice receipt?

1.Vendor A/c will be Cr.

2.GR/IR will Dr.

3 Stock A/c can be Dr or Cr if there is Deveations at IR

4. COGS A/c will be Dr or Cr with Same Deveations

5. Labour charges A/c will be Dr or Cr with Same Deveations

2. in STO process what are the account entries are there during billing, goods

issue, etc.

At STO when you do Goods issue to other Palnt following entry will be post

if Price is MAP

Inventory A/c(Bsx) at sending Plant will be Cr.

Inventroy A/c (Bsx) at Receiveing plant will be Dr with Freight cost and 4 % VAT reversal if stock is going in intersate plant.

At GR there would not be any FI entry.

AT IR if company code is same there would not be any transaction for IR.

Hope you have understood.

Don't forgat to reward points

Regards,

Ashish Vats

Former Member
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At STO when you do Goods issue to other Palnt following entry will be post

if Price is MAP

Inventory A/c(Bsx) at sending Plant will be Cr.

Inventroy A/c (Bsx) at Receiveing plant will be Dr with Freight cost and <b>4 % VAT</b> reversal if stock is going in intersate plant

Dear Ashish,

As far as My Knowledge is Concerned VAT or CST Doesn't come in Picture in STPO process so Check it again.

Regards

Biswajit

Former Member
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Dear Biswajit,

when you do any interstate stock transfer you have to reverse 4 % VAT from the Credit which you have taken at the time of purchaseing this materials in sending plant state .

since you are sending material to other state it means sale of this materials will happen in receiving plant state. sending Plant can not take benefit of 8 % Vat Credit (Business will have VAT credit only if you Do Purchase and sale in one State) in this case 4 % VAT will be loaded materials at Receving Palnt

Hope this will cleare to you.

Regards,

Ashish Vats

Former Member
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Dear Ashish,

If ur Doing inter sate Stock Transfer then How VAT will come into Picture It should CST?? Am I right???As I m out of touch so I can't tell u much in this regard.

So u can Confirm it from the Company Sales or Excise Dept.Plz Let me know.

Regards

Biswajit

Former Member
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Hi Biswajit,

u r right 4 % Vat Revesal is exactly the CST. that is why this 4 % will be loaded on material cost at Receiving plant. for this STO Priceing schema needs to be configured such a way so that sending plant can reverse 4 % Vat credit to Sales tax dept. and at receiving plant this 4 % CST (Vat reversal) can be loaded on Material cost.

i said this VAT Reversal because this is Stock transfer for receiving plant not Purcase at Receiving plant.

if you do any intersate purcase in that case we will say this CST not Vat reversal.

Regards,

Ashish

Former Member
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Dear Ashish,

Thanks for ur valuable input.

Regards

Biswajit

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Dear Ashish,

I am very much impressed upon your answer, This question had been asked in almost all of the interviews, but i am unable to answer it.

Now i had got your elaborated and self explanatory notes, which will be useful for all.

Thanks a lot,

Regards,

R. Dillibabu.

Former Member
0 Kudos

Hi Guys,

Where are Points for reply ???????

regards,

Ashish

Former Member
0 Kudos

Dear Ashish,

Do't worry about the Points

I will create a new Thread to Give u Points.

At the same time I have got a Doubt.

please clarify it.

Have u ever heard about <b>Form F</b>.If u do the Stock Transfer then u won't have to Pay CST for inter State stock Transfer??

Am I right ??

Regards

Biswajit