Visit the SAP Forum

Languages : English | Dutch | French | Portugese | Italian



INTERVIEW EBOOK
Get 30,000 Interview Questions & Answers in an eBook.

Interview Success Kit - Get Success in Job Interviews



Send your Resume to 6000 Companies
START YOUR WEBSITE
India's Best Web Hosting Company

Sales and Distribution Accounting Entries




Sales and Distribution Accounting Entries

INVOICE GENERATION
Invoices will be generated at the Smelters  and stock points. The accounting entries for the sale of goods despatched will flow from the Sales invoice generated in SAP Sales and Distribution module. The following entries shall be passed 
- Customer Account -    Dr
- Revenue - - - - - - - - - - - - - - - - Cr
- Excise Duty Payable - - - - - - - - - - Cr
- Sales Tax Payable (local or central) - -    Cr 

Note: As mentioned above in the FI document, which is created in the background, the SD invoice number shall be captured. However as per the current accounting procedure the accounting entry passed is as follows :-
-   Customer Account -    Dr
-   Revenue - - - - - - - - - - - - - - - - Cr
-   Excise Duty Billed - - - - - - - - - - - Cr
-   Sales Tax Payable (local or central) - -   Cr

-   Excise duty paid a/c -   Dr
-   Excise duty payable a/c - - - - - - - -   Cr 


EXPORT SALES
There have been very few export transactions in the past. SAP system will be designed to handle export business. Exports are mainly from the mines and will be handled at the mines, however the documentation part will be taken care at the Head Office. The accounting entry is:
-   Customer Account - -   Dr 
-   Revenue (Exports) - - - - - - - - - - - Cr 

The realisation of export sales will be directly credited to the bank.  The accounting entries will be as follow:
-   Bank - - - - - - - - - Dr
-   Customer - - - - - - - - - - - - - - -   Cr
-   Exchange Fluctuation - Dr/ Cr

The accounting entries will be:
-    Rebates/Discounts - -   Dr
-    Customer - - - - - - - - - - - - - - -   Cr
- - - - - - - - - - - - - -  
DEBIT MEMOS
Debit Memos shall be issued in case of price difference, sale tax difference and interest on usance period and  overdue payments.

The accounting entries for two possible scenarios are as follows:
-    Price Undercharged:
-    Customer Account - -   Dr.
-    Revenue - - - - - - - - - - - - - - - - Cr.
-    Sales tax payable - - - - - - - - - - -    Cr.
-    Sales tax undercharged
-    Customer Account - -    Dr.
-    Sales tax adjustment - - - - - - - - - -   Cr.

Interest on delayed payments/usance period and other charges
-    Customer Account - -    Dr.
-    Interest Others - - - - - - - - - - - - - Cr.

In case of HZL  a complete retirement or a partial retirement of asset is done. The system uses the asset retirement date to determine the amount to be charged off for each depreciation area. The existing accounting policy is to provide depreciation for the full quarter in which the asset is sold/discarded, recommended that the depreciation be provided from the date of acquisition on prorata basis .

Accounting entry for sale of Asset to customers:
- -   Customer Account - - - -    Dr
- -   Asset Sale - - - - - - - - - - - - - - - Cr
- -   Accumulated Depreciation   Dr
- -   Loss on Sale (if applicable)  Dr
- -   Asset Sale account - - - -   Dr
- -   Asset account - - - - - - - - - - - - -   Cr
- -    Profit on sale (if applicable) - - - - - -   Cr

Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected  the entry is posted to the GL Account (Sales Tax Payable)

Accounting entry for sale without a customer:
- - - Accumulated Depreciation - Dr
- - - Loss on Sale (if applicable)   Dr
- - - Asset Sale account - - - -    Dr
- - - Asset account - - - - - - - - - - - -   Cr
- - -   Profit on sale (if applicable) - - - - -   Cr

Accounting entry for scrap
- - -   Accumulated Depreciation - Dr
- - -   Loss on Sale of Assets - -    Dr
- - -   Asset account - - - - - - - - - - - -   Cr

SALE OF SCRAP
The sale of scrap (non-stock) shall be mapped as a direct manual FI entry. The customer will be created as a FI customer. No Logistics module will be involved in the process.

A FI Invoice will be prepared for the sale of scrap with the following entries:
- - - -   Customer - - - - - - - -    Dr
- - - -   Sale of Scrap - - - - - - - - - - -    Cr
- - - -   Excise Duty Payable - - - - - - - - Cr

ADVANCES FROM CUSTOMERS
Advances are received from the customers against delivery. These advances will be recorded in a special general ledger account. The accounting entry for the same will be:  
- - - -   Bank Account - - - - - - - Dr
- - - -   Advance Customer Payments - - -    Cr

These advances will be later on adjusted against the invoices raised on the customers. Advances can be adjusted against more than one invoice at the time of clearing of the invoices against advances.

- - - -   Adjustment of Advances
- - - -   Customer Account - - - - - - - - -   Cr
- - - -   Advance Customer Payments  Dr

A financial document would be created for each Bank Guarantee received and this document number will be referred to in the Sales Order which would then monitor the value and the validity of the of the Bank Guarantee instrument wise while doing the billing.The letter of credit /Bank guarantee given will be recorded as a noted item.

Accounting Entry for Goods receipt
- - - - - Stock/Inventory account - -    Dr
- - - - - GR/IR account - - - - - - - - - - -   Cr
- - - - - Freight clearing account - - - - - - - Cr

Accounting Entry on invoice verification of supplier
- - - - - GR/IR - - - - - - - - - - -    Dr
- - - - - Vendor account - - - - - - - - - - - Cr

Accounting Entry on invoice verification of freight vendor
- - - - - Freight clearing account - - - Dr
- - - - - Freight Vendor account - - - - - - -   Cr 

GOODS RECEIPT
Based on the Purchase order and the Quantity actually received Goods Receipts (GR) will be done. Based on the GR done the following accounting entry will be passed in the Financial Accounts
- - - - -    RM/PM Stock Account - - Dr
- - - - -    GR/IR Account - - - - - - - - - -    Cr
- - - - -    Freight Clearing Account - - - - - - Cr

EXCISE INVOICE VERIFICATION
On receipt of the excise invoice cum gate pass the following entry will be passed
- - - - - - RG 23 A / RG 23 C Part 2 Account - Dr 
- - - - - - Cenvat Clearing Account - - - - - - - - -    Cr

A D V E R T I S E M E N T

A D V E R T I S E M E N T

S A P - R E S O U R C E S


Get Free SAP Resources:

Are you looking for:
  • SAP Jobs
  • Free SAP eBooks
  • SAP Softwares
  • SAP Tutorials
  • ERP Implementation Examples
Enter Email Address:
(Enter your email address above and we will instantly send you the download link to you, when you confirm your email.)
Search SAP Resources:
discussionDiscussion Center
Discuss
Discuss

Query

Feedback
Yahoo Groups
Y! Group
Sirfdosti Groups
Sirfdosti
Contact Us
Contact
Sign in

User Name:
Password:
Forget password? | Register


INTERVIEW EBOOK

Get 30,000 Interview Questions & Answers in an eBook.

Interview Success Kit - Get Success in Job Interviews


Send your Resume to 6000 Companies

SAP Resources

  • SAP Articles
  • SAP Books
  • SAP Certifications
  • SAP Companies
  • SAP Study Materials
  • SAP Events
  • SAP Faqs
  • SAP Jobs
  • SAP Job Consultants
  • SAP Links
  • SAP News
  • SAP Sample Papers
  • SAP Interview Questions
  • SAP Training Institutes
  •  
    SAP Tutorial

  • Introduction
  • SAP History
  • SAP Facts
  • SAP Tables
  • SAP Function
  • SAP Report
  • Reasons To Use SAP
  • SAP Landscape
  • SAP Transaction Code
  • SAP Lotus Notes Integration
  • Business Connector and XML
  • Enterprise Release 4.7

  • SAP Training Institutes

  • SAP Training Institutes
  • Job Consultants Address
  • SAP Companies Address

  • Business Process Cycle

  • Analyze
  • Design
  • Implement
  • Operate
  • Optimize
  • Skills And Education

  • Logistics Module

  • Sales and Distribution
  • Quality Management
  • Materail Management
  • Plant Maintenance
  • Financial Modules (FI/CO)
  • Project system
  • Production Planning
  • Service Management

  • SAP NetWeaver

  • Introduction
  • Object Model
  • Interoperability
  • Creating Web Apps
  • Java Connector
  • Advantages & Conclusion
  • Life Cycle Management
  • Composite Application Framework

  • SAP Tools

  • SQL Trace Tool
  • SAP CRM
  • SAP SRM
  • SAP SCM
  • SAP ERP
  • SAP BW

  • SAP Modules

  • SAP FI Module
  • SAP CO Module

  • SAP Technical

  • SAP ITS Architecture
  • Financial Management
  • Manufacturing Planning and Execution
  • Customer Order Management
  • Lackbox Processing
  • SD and Financial Accounting Integration
  • SAP - HR (Human Resource)

  • SAP Miscellanous

  • Web Application Server(WAS)
  • Data Archiving
  • Mobile Engine
  • SAP Script
  • SAP Transactions
  • SAP Business Warehouse(BW)

  • SAP Reference

  • SAP Facts
  • SAP Tables
  • SAP Function
  • SAP Report
  • SAP Landscape

  • SAP Others

  • SAP Treasury
  • SAP Finance
  • SAP WAS
  • SAP Data Archiving
  • SAP ALE
  • SAP EDI
  • SAP Exchange
  • SAP X-APPS
  • SAP Applications Components
  • SAP Software
  • Dunning
  • SAP IDES
  • SAP Payroll Basics
  • SAP BASIS and Security Authorization
  • SAP Backup
  • SAP Router

  • ABAP Tutorials

  • Introduction
  • ABAP Transaction
  • ABAP Function
  • ABAP File Processing
  • ABAP Objects
  • ABAP Syntax
  • ABAP Queries
  • SAPMail Using ABAP
  • ABAP Programming Hints

  • SAP Projects & Codes

  • Finding the user-exits
  • Purchase Order Display
  • Batch Input
  • Dynamic Open SQL
  • Creating Extract Dataset
  • Reading database tables
  • Load table from a UNIX file
  • Create subscreen

  • SAP Resources

  • SAP Books
  • SAP Links

  • Interview Question



  • Common Interview Que.
  • ABAP Interview Que.
  • ERP Interview Que.
  • HR Interview Que.
  • MM Interview Que.
  • PP Interview Que.
  • ALE Interview Que.
  • EDI Interview Que.
  • Basis Interview Questions
  • SAP-SD Interview Questions
  • FI&CO Interview Questions
  • BW Interview Questions
  • CRM Interview Questions
  • Interview Questions

  • Careers at SAP

  • Careers in SAP (SAP Jobs)
  • Advertise
  •