Accounting Entries for MM

Accounting Entries for MM, FI related Labels: SAP FI, SAP FICO, SAP MM ○

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 procurement of Capital Goods During GR Material Stock GR/IR clearing During Excise Invoice Credit Cenvat Account Cenvat On-hold Cenvat Clearing During Invoice Verification Cenvat Clearing GR/IR Clearing Vendor Payable Subsequent of Capital Goods Cenvat Account Cenvat On-hold

Dr. Dr. Dr. Dr. Dr. Dr.

Cr. (50%) (50%) Cr.

Cr (50%) Cr.

For Import Procurement of Raw Material During Customs Duty Clearing invoice Custom Clearing Custom Payable During GR Material Stock GR/IR clearing During Excise Invoice Credit Cenvat Account Custom Clearing During Invoice Verification GR/IR Clearing Vendor Payable

Dr. Dr. Dr. Dr.

Cr. Cr. Cr. Cr.

For Excise Duty Credit of Raw Material without PO Cenvat Account Cenvat Clearing

Dr. Cr.

(50%)

For Excise Duty Reversal through Excise JV Cenvat Clearing Cenvat Account

○

Dr. Cr.

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 PLA Account

Cr. Cr.

Note: Cenvat Suspense Account should be cleared appropriately using FI JV's.

○

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 Sales Account Cenvat Suspense Account During Excise Invoice Creation Cenvat Suspense Account Cenvat payable

Dr.

Dr.

For TR6C Challan PLA Account Dr. PLA on hold Account

Cr.

During Fortnightly Utilization Cenvat payable Dr. Cenvat Account PLA Account

Cr. Cr.

Cr. Cr.

Cr.

For Stock Transfer through SD No Accounting entries for Performa Billing Document During Excise Invoice Creation Cenvat Suspense Account Cenvat payable

Dr. Cr.

For TR6C Challan PLA Account Dr. PLA on hold Account

Cr.

During Fortnightly Utilization Cenvat payable Dr. Cenvat Account PLA Account

Cr. Cr.

Note: Cenvat Suspense Account should be cleared appropriately using FI JV's. Posted by SAP 1 comments

Accounting Entries related to MM transactions... Labels: SAP FI, SAP FICO, SAP MM Initial stock entry: Movement type 561(Receipt per initial entry of stock balances into unrestricted-use) TCODE MB1C FI Document Type - WA 89 Raw material BSX S 91 Initial Stock entry GBB BSA H Physical inventory differences: Movement type – 702 (Goods Issue – Physical Inventory difference) this is triggered because of the movement type 102, which is given while calculating the difference – INV: for expenditure/income from inventory differences TCODE MI07 (MI01 & MI04) FI Document Type WI 81

Inventory differences – GBB INV S G/L 99 Raw material BSX H Goods Issue to Production Order: Movement type - 261 (Consumption for order from warehouse) – VBR: for internal goods issues (for example, for cost center) TCODE MB1A FI Document Type WA: Goods Issue 81 Raw material Consumption GBB VBR S 99 Raw material BSX H In case Movement type given is 201(Consumption for cost center from warehouse), at the time of MB1A system asks for the COST CENTER & GENERAL LEDGER. Here, the account determination happens directly from MB1A and not from the OBYC. Accounting entry will be same as above except the 'Raw material Consumption'; it triggers whatever the GL given. Goods Issue / Delivery: SD Movement type - 601 (Customer delivery) – VAX: for goods issues for sales orders without account assignment object (the account is not a cost element) TCODE VL02 FI Document Type WL: Goods Issue/Delivery 81

Mater. consumed/trading

GBB

VAX

S

goods without cost element COGS 99 Finished Goods BSX H Goods Receipt: FG PP Movement type - 101 (Goods Receipt) – GBB-AUF: for goods receipts for orders (without account assignment) and for order settlement if AUA is not maintained TCODE MB31 Goods Receipt for Production Order FI Document Type - WE: Goods Receipt 89 91

Finished Goods BSX S Inventory change – factory GBB AUF H output COGP Goods Receipt: RM MM Movement type - 101 (Goods Receipt) TCODE MIGO Goods Receipt for Purchase Order FI Document Type - WE: Goods Receipt 89 Raw Material BSX S 96 GR / IR Clearing account WRX H Invoice Receipt: RM MM Movement type - 101 (Goods Receipt) TCODE MIGO Goods Receipt for Purchase Order FI Document Type - WE: Goods Receipt 86 GR / IR Clearing account WRX S 31 Vendor account KBS H KBS – is without any account determination and posting keys are 81 & 91. It triggers when there is no material is assigned in the PO at that time. WRX – In case of any posting required without material, account determination should be without valuation class. If price changed at the time of IR, then based on the difference in the material price system posts amounts to particular material account and not to the price difference account (this is related to the materials with price control – V). Material Valuation: MM Movement type TCODE MR22 Dr/Cr Material – material valuation (below given calculation) & MR21: Price Change (Difference amount posts to the material account and calculation is ((New price – Old price) * Quantity) FI Document Type PR: Price change – Below entry in case of price increase 89 93

Raw material Material Valuation

Calculation -

BSX UMB

{

Current Stock Value +

in MR22 * Cr. Quantity

S H

(

)}

Billing Document: SD TCODE VF01 Billing FI Document Type RV: Billing document transfer 01

Amount given in MR22 / Quantity given

Customer account

BSX

-

VF11 Cancel Billing RW: Reversal of billing S

50

Sales Revenue account

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UMB

H