on 2008 Jun 08 4:11 PM
Hi
I have following SD scenario. please explain as to how postings are done at each stage to accounts
sales order: 20 pcs, $10 per pc
Goods issue: 20 pcs delivered, $10 per pc, standard price $8 per pc
Invoice: 20 pcs, $10 per pc
Incoming payment: $200
thanks
While posting accounts, basic rule is
each business transaction is posted at least two different accounts
debit postings always appear on the left side of a T account
credit postings always appear on the right hand side of a T account
Total debit postings = Total credit postings.
In SD business transaction, an accounting document is created at the point of goods issue and/or invoice creation.
For your scenario, following postings take place. I can't explain it in real T account type but providing account wise detail
- At the point of goods issue, the goods physically leave the warehouse. This results in a stock-related and value-related posting. This means that the stock is reduced and the materials used increased. The posting is therefore called "Materials used to stock".
Material account (Expenses) Debit side $160 (20*$8)
Stock account (Assets) Credit side $160
- At the point of billing, receivables are accumulated by the customer, and additions are posted to sales revenues (posting record: Receivables to sales revenues).
Receivables account(Assets) debit side $200 (20*$10)
sales revenue account(Revenues) Credit side $200
- If the incoming payment is made in FI, the receivables are reduced again and the amount of the cash inflow is posted to a bank account (posting record: Bank to receivables).
Receivables account (Assets) Credit side $200
Bank Account (Assets) Debit side $200
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Hi
I have following SD scenario. please explain as to how postings are done at each stage to accounts
sales order: 20 pcs, $10 per pc
NO FI POSTING
Goods issue: 20 pcs delivered, $10 per pc, standard price $8 per pc
FI POSTING :
Stock (finished goods) Dr $160
Cost of (Finished) Goods Sold Cr $160
Invoice: 20 pcs, $10 per pc
FI POSTING :
Customer Account Dr $200
Sales (Domestic/ Export Depending on the cust Account Group) Cr $200
Incoming payment: $200
FI POSTING :
Customer Account Cr $200
Bank A/c Dr $200
thanks
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Hi
In SD scenario the postings takes when the Billing document is created.
The postings that takes place during PGI is related to MM and it is the result of the MM Account Assignment. The postings(debit and credit) happen for the COGS(Cost fo Goods Sold) and the Value of the inventory.
The posting of Incoming Payment is taken care by the FI.
The Accounting documents that are created during Billing ae.,
1. Accounting document
2.Profit centre document
3.Special purpose ledger
4.Profitability analysis
5.Controlling document.
Thanks,
Ravi
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Hi wen
In sales order there wont be any postings
Once you do PGI for 10pcs @8/- each the value will update in the G/L accounts and the inventory level will come down
Once you do Invoice for these 10pcs@ 20/- each the amount Rs200/- will get posted to the respective G/L accounts , as if Rs200/- is ERL then for that there will be a G/L account assigned . To that G/L account the amount get posted
Regards
Srinath
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