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Standard Purchase process with accounting in sap b1
The document describes the standard purchase process flow and associated accounting entries in SAP Business One. When goods are received, inventory and goods received not invoiced accounts are impacted. When the goods receipt is converted to an incoming excise invoice, input credit on excise duty and incoming CENVAT clearing accounts are impacted. When the goods receipt is converted to an accounts payable invoice, creditors, input credit on VAT, goods received not invoiced, and incoming CENVAT clearing accounts are impacted. The accounts payable invoice is closed when payment is made, impacting bank and creditors accounts.
Standard Purchase process with accounting in sap b1
- 1. Standard Purchase ProcessFlow with Accounting – SAP Business one Created by: Sandeep Rathod Example: We are purchasing 10 Quantities of Item A with unit price of 100. Item A is Excisable (BED@12+ECess@0+HSCess@0+VAT@5%) Stock Formula in SAP: Available = Instock – Committed + Ordered • No Accounting Impacts • Impact on Stock Status on the particular warehouse Available Instock Committed Ordered 10 10 • Accounting Impact occurs when GRPO is added in system • Purchase Order is closed once all Quantities are converted to GRPO Account Name Account Drawer Debit Credit Inventory Account Asset 1000 Goods Received Not Invoiced Liability 1000 Purchase Order GRPO
- 2. Standard Purchase ProcessFlow with Accounting – SAP Business one Created by: Sandeep Rathod • Impact on Stock Status on the particular warehouse Available Instock Committed Ordered 10 10 • Accounting impacts when GRPO is converted to Incoming Excise Invoice Account Name Account Drawer Debit Credit Input Credit on Excise duty Asset 120 Incoming CENVAT Clearing Account Asset 120 Incoming Excise Invoice
- 3. Standard Purchase ProcessFlow with Accounting – SAP Business one Created by: Sandeep Rathod • Accounting Impacts when GRPO is converted to A/P Invoice • GRPO is closed once it is converted to A/P Account Name Account Drawer Debit Credit Creditors (Control Account) Liability 1176 Input Credit on VAT Goods Received Not Invoiced Incoming CENVAT Clearing Account Asset Liability Asset 56 1000 120 • A/P Invoice is closed once converted to Outgoing payment • Reconciliation is done automatically since payment is made against invoice • Accounting impact by Outgoing payment Account Name Account Drawer Debit Credit Bank Account Asset 1176 Creditors Account Liability 1176 A/P Invoice Outgoing Payment
- 4. Standard Purchase ProcessFlow with Accounting – SAP Business one Created by: Sandeep Rathod