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Sap erp financials cin accounting flow of entries

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SAP ERP Financials Country Version India -Accounting Flow of Entries for quick reference. I hope this will be useful for every one especially beginners.

SAP ERP Financials Country Version India -Accounting Flow of Entries for quick reference. I hope this will be useful for every one especially beginners.

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  • 1. SAP ERP FINANCIALSCIN – FINANCIAL ACCOUNTING FLOW OF ENTRIESSource – SDN.SAP.COM (wiki)Prepared By: Ms.Pramila Nagaraj First Class MBA Finance Graduate (2009-10) Global Academy of Technology, Bangalore (VTU- Belgaum) Trained up in SAP FICO @ SAPTAC Bangalore (FRESHER)
  • 2. COUNTRY VERSION INDIA – FINANCIAL ACCOUNTING FLOW OF ENTRIES This is for Country Version India, Financial Accounting Flow of Entries: I. Procurement of Stock. What should be my accounting entry in procurement? For Domestic Procurement of Raw Material During GR Material Stock Dr. GR/IR clearing Cr. During Excise Invoice Credit Cenvat Account Dr. Cenvat Clearing Cr. During Invoice Verification Cenvat Clearing Dr. GR/IR Clearing Dr. Vendor Payable Cr. For Domestic proceurement of Capital Goods During GR Material Stock Dr. GR/IR clearing Cr. During Excise Invoice Credit Cenvat Account Dr. (50%) Cenvat On-hold Dr. (50%) Cenvat Clearing Cr. During Invoice Verification Cenvat Clearing Dr. GR/IR Clearing Dr. Vendor Payable Cr Subsequent of Capital Goods Cenvat Account Dr. (50%) Cenvat On-hold Cr. (50%) For Import Procurement of Raw Material During Customs Duty Clearing invoice Custom Clearing Dr. Custom Payable Cr. During GR Material Stock Dr. GR/IR clearing Cr. During Excise Invoice Credit Cenvat Account Dr. Custom Clearing Cr. During Invoice Verification GR/IR Clearing Dr. Vendor Payable Cr. For Excise Duty Credit of Raw Material without PO Cenvat Account Dr. Cenvat Clearing Cr. For Excise Duty Reversal through Excise JV Cenvat Clearing Dr. Cenvat Account Cr.
  • 3. COUNTRY VERSION INDIA – FINANCIAL ACCOUNTING FLOW OF ENTRIES What should be my accounting entry when the goods are issued through MM and excise invoice is created (J1IS & J1IV)? During Excise Invoice Creation Cenvat Suspense Account Dr. Cenvat payable Cr. For TR6C Challan PLA Account Dr. PLA on hold Account Cr. During Fortnightly Utilization Cenvat payable Dr. Cenvat Account Cr. PLA Account Cr. Note: Cenvat Suspense Account should be cleared apprpiately using FI JVs. What should be my accounting entry in subcontracting reversal / Recredit ? For Subcontracting Challan Reversal Cenvat Reversal Dr. Cenvat Account Cr. For Subcontracting Challan Recredit Cenvat Account Dr. Cenvat Reversal Cr. What should be my accounting entry in SD ? For Factory Sale During Billing Document Customer Account Dr. Sales Account Cr. Cenvat Suspense Account Cr. During Excise Invoice Creation Cenvat Suspense Account Dr. Cenvat payable Cr. For TR6C Challan PLA Account Dr. PLA on hold Account Cr. During Fortnightly Utilization Cenvat payable Dr. Cenvat Account Cr. PLA Account Cr. For Stock Transfer through SD No Accounting entries for Proforma Billing Document During Excise Invoice Creation Cenvat Suspense Account Dr. Cenvat payable Cr. For TR6C Challan PLA Account Dr. PLA on hold Account Cr. During Fortnightly Utilization Cenvat payable Dr. Cenvat Account Cr. PLA Account Cr. Note: Cenvat Suspense Account should be cleared apprpiately using FI JVs.
  • 4. COUNTRY VERSION INDIA – FINANCIAL ACCOUNTING FLOW OF ENTRIESII. Central Excise RG 1 - Production & Issues or Inputs form Production and Sales RG 23A Part I - Link Stock Register, only Product details and Quantity details. RG 23A Part II - Cenvat Credit on Incoming Materials & Duty Paybale on OutgoingMaterials or on Sales (Monthly Register) Excise PLA Register - TR 6 Challans Form No. 5 Register - For Return Goods (Form D3 to be submitted to Excise Dept.,) In SAP the Movement you save the MIGO Transaction, it automatically generate FIDocument. It will create the following entry. i). Inventory Raw Material A/c Dr To GR/IR Clearing A/c Cr In MIGO Transaction itself, you can post Excise by choosing capture and postExcise Invoice. The FI Document will be as follows. ii). RG 23 A Basic Excise Duty A/c Dr To Canvat Clearing A/c Cr After doing MIGO, you execute MIRO. In this transaction also SAP will generate FIdocument automatically. The Entry will be as follows: iii). GR/IR Clearing A/c Dr Cenvat Clearing A/c Dr VAT Setoff A/c Dr To Vendor A/c CrIII. Flow of Entries for a Normal Manufacturing Activity: I. On Receipt of Raw Materials: (MIGO-movement type:101) Dr. Inventory of Raw Materials 100 Dr. Inventory of Operating Supplies 20 Dr. Inventory of Packing Materials 10 Cr. GR/IR Clearing A/c 130 II. On Invoice Verification: (MIRO) Dr. GR/IR Clearing A/c 130 Cr. Vendor A/c 130 III. On Goods Issued for Production: (MIGO-movement type:261) Dr. Consumption of Raw Materials 100 Dr. Consumption of Operating Supplies 20 Cr. Inventory of Raw Materials 100 Cr. Inventory of Operating Supplies 20 IV. On Semi-Finished Goods Received form Process: (MIGO-movement type:101) Dr. Inventory of Semi-Finished Goods 120
  • 5. COUNTRY VERSION INDIA – FINANCIAL ACCOUNTING FLOW OF ENTRIES Cr. Cost of Goods Manufactured (Semi-Finished Goods)120 V. On Issued of Semi-Finished Goods for further Processing: (MIGO-movementtype:261) Dr. Consumption of Semi-Finished Goods 120 Dr. Consumption of Packing Materials 10 Cr. Inventory of Semi-Finished Goods 120 Cr. Inventory of Packing Materials 10 VI. On Finished Goods Received from Process: (MIGO-movement type:101) Dr. Inventoyr of Finished Goods 130 Cr. Cost of Goods Manufactured (Finished Goods) 130 VII. On Finished Goods Issued for Sales: (VL01N-movement type:601) Dr. Cost of Goods Sold (Finished Goods) 130 Cr. Inventory of Finished Goods 130 VIII. On Raising Bill for the Customer: (VF01) Dr. Customer A/c 145 Cr. Sales A/c 145

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