Before created AP Invoice , Sale was made then Impact of G/L account SAP Business One

[nikunjmehta2290]

Dear all,

Need to understanding on G/L account, Stock account, Stock while sale was made before making actual AP Invoice.

Issue : One GRPO is created and Few delivery is created here based on GRPO.  

Here, AP Invoice is not created for that GRPO. Need to understanding the effect of G/L account, Stock account, Stock.

Regards,

Nikunj 

[Yadharthavel]

Hi @nikunjmehta2290 ,

In SAP Business One (SAP B1), each document in the Sales and Purchase modules generates specific journal entries that impact your General Ledger (G/L) accounts. Understanding these journal impacts helps in tracking and reconciling financial transactions. Here's a detailed look at how various documents affect the journal entries in SAP B1:

Sales Documents

1. Sales Quotation
• Journal Impact: No journal entries are generated. Sales quotations are only used for proposing sales terms and prices.
2. Sales Order
• Journal Impact: No immediate journal entries are generated. Sales orders affect inventory and sales commitments but do not post to the General Ledger until further documents are processed.
3. Delivery
• Journal Impact:
• Inventory Account: Credit to the inventory account for the cost of goods delivered.
• Cost of Goods Sold (COGS): Debit to the COGS account if the delivery is linked to a sale.
• Sales Revenue Account: Debit to the revenue account for the amount of the sale (depending on configuration).
• Example:

Debit: Cost of Goods Sold (COGS)

Credit: Inventory Account

1. A/R Invoice
• Journal Impact:
• Revenue Account: Credit to the revenue account for the total sales amount.
• Accounts Receivable: Debit to accounts receivable (customer) for the total invoice amount.
• Tax Accounts: Debit/credit to relevant tax accounts if applicable.
• Example:

Debit: Accounts Receivable

Credit: Revenue Account

1. A/R Credit Memo
• Journal Impact:
• Revenue Account: Debit to the revenue account to reverse the previously recognized revenue.
• Accounts Receivable: Credit to accounts receivable (customer) for the total credit memo amount.
• Tax Accounts: Adjust tax accounts if applicable.
• Example:

Debit: Revenue Account

Credit: Accounts Receivable

Purchase Documents

1. Purchase Quotation
• Journal Impact: No journal entries are generated. Purchase quotations are used for obtaining quotes from suppliers.
2. Purchase Order
• Journal Impact: No immediate journal entries are generated. Purchase orders affect inventory and expenses upon further processing.
3. Goods Receipt Purchase Order
• Journal Impact:
• Inventory Account: Debit to the inventory account for the value of goods received.
• Accrued Expenses: Credit to accrued expenses or a goods receipt account if the invoice has not been received yet.
• Example:

Debit: Inventory Account

Credit: Accrued Expenses/Accounts Payable

1. A/P Invoice
• Journal Impact:
• Expense Account: Debit to the relevant expense account or asset account (if capitalized).
• Accounts Payable: Credit to accounts payable (vendor) for the total invoice amount.
• Tax Accounts: Credit/debit to relevant tax accounts if applicable.
• Example:

Debit: Expense Account

Credit: Accounts Payable

1. A/P Credit Memo
• Journal Impact:
• Expense Account: Credit to the expense account to reverse the previously recognized expense.
• Accounts Payable: Debit to accounts payable (vendor) for the total credit memo amount.
• Tax Accounts: Adjust tax accounts if applicable.
• Example:

Debit: Accounts Payable

Credit: Expense Account

General Ledger Impact Considerations

• Tax Handling: Ensure that tax codes are correctly applied to capture the correct tax-related journal entries.
• Account Determination: The specific accounts used in journal entries are configured in the system’s account determination settings, which determine how different types of transactions impact your financials.
• Reporting and Reconciliation: Regularly review financial reports and perform reconciliations to ensure accuracy and identify any discrepancies.

By understanding these journal impacts, you can effectively track financial transactions and ensure accurate financial reporting in SAP B1

[nikunjmehta2290]

Thank you for sharing valuable details. But My concerns is Need to understanding sale was made before making actual AP Invoice.

Issue : One GRPO is created and Few delivery is created here based on GRPO.

Here, AP Invoice is not created for that GRPO. Need to understanding the effect of G/L account, Stock account, Stock report and Finance reports.