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Materials Management Business Scenario

Former Member
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Hi

I am looking for assistance regarding the processing of the following business scenario. 

We have a piece of equipment that we do not own as we have rented it. 

The rental is for a full year and the total amount is paid at the start of the year.  We wish to have this transaction captured in the Materials Management Module and integrated with the General Ledger via Invoice Verification and Accounts Payable. 

The functions used in SAP should allow for the following accounting entries:

1.1.13 [at start of year - posting of the Invoice]

Debit Prepaid Expense 144,000.00

   Credit   Vendor a/c     144,000.00

1.1.13 [at the start of the year - posting of the Payment]

Debit   Vendor a/c      144,000.00

   Credit   Bank a/c     144,000.00

At the end of each month we want each months rental to be posted as follows [144,000/12]:

Debit  Expense a/c   12,000.00

   Credit  Prepaid Expense a/c  12,000.00

If we want to achieve the above what functionality should we utilize in SAP [Materials Management and GI] to achieve the above.

Any guidance you can provide would be greatly appreciated.

Regards,

Jonathan

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Answers (1)

Answers (1)

former_member211635
Contributor
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hi,

Please create a new valuation class for such materials

assign prepaid exp account in obyc - bsx key

entries @ GI

prepaid exp

     to GR/IR

Tcode miro, entries

GR/IR

     To Vendor

Payment (tcode f-53 / f110)

Vendor

     to bank

w.r.t. monthly entries:-

1. use FBD1 for recurring entry

2. run f.14 to create an entry every month

(Give reference to miro invoice number in case you want to fetch a report later on for miro inv and monthly exp entries

Thank You

Nishu