Valuation class
Valuation class determines the GL accounts
to be posted automatically.
A) Raw materials Local
Imported
Inter
unit purchases
Inter
company purchases 4
Valuation
class
B) Stores :Local 2 valuation class
C) Finished goods own manufacturing 1
valuation class
Valuation
grouping code / valuation modifier /Valuation modification key:
Company codes BIL BCL BSL
Chart of accounts BIL
Plants HYD-BGL BGL-MUM HYD-MUM
Local raw materials RM1 RM2 RM3-RM1 RM2-RM3
Incase of purchases, 200121 –Inventory raw
material local
When we follow same chart of accounts for
numbers of company codes, Instead of assigning accounts number of times, assign
only one time by using valuation grouping code.
Valuation Chat
of accounts Company
code Valuation
Areas Plants Grouping
HYD BIL BIL X
BGL BIL BIL X
BGL BIL BCL X
MUM BIL BCL X
HYD BIL BSL X
MUM BIL BSL X
For X in case of RM local purchases assign
account number 200121, inventory Raw material local.
This
is similar to posting periods in FI
A) Define posting period variant X
B) Assign posting period variant to company
codes X to BIL
X
to BCL
X
to BSL
c) Define posting periods for variant X
for
X—1, 2008 –12,2008
Material
types Price
controls
Raw materials ROH V-Moving average price purchase price
Stores & spares ERSA V-Moving average price purchase price
Packing & material VERP V-Moving average price purchase price
Finishing goods FERT S-Standard price Raw materials +
Semi finished goods HALB Overheads
Purchased V-Moving average price Purchase price
Produced S-Standard price Raw material+Overheads
Trading goods HAWA V-Moving
average price Purchase price
Services DIEN
Semi
finished goods purchased
Dept
A Dept B Dept C Dept D
15
days FG
Sales
order –To be delivered with in 2 days
Purchase
an item where with
In
2 days purchase an item
Where
processing of A,B and C is completed
D processing of
D
Semi finished goods produced
Dept
A Dept B Dept C Dept D
Issue RM 15
days time
Sales Dept –got
an order for sale where the processing of A and B is completed
Take production
After completion
Of B and sell
Trading goods: Purchase FG and sell FG without doing any processing.
Services: Plant is having operating capacity
No
sales orders
Job
work for others
We
get job work changes –Material
Does
not belong to us
-
Material types are similar to
account groups in FI
-
There we create GL masters here
we create material masters.
-
GL master are created under
account group where as material masters are created under material type.
-
Material master is created at
plant level-when number of plants are using the same material it will be
extended(copied) to other plants.
-
For materials we can open 2
periods at a time.
Oct Nov.
When we open Dec.-Automatically Oct will be
closed.
Where we crate material master –We will
have number of tabs (Views)
Basic data
Purchase view
Sales view
MRP view
Quality
Ware house management
Accounting
Costing
MM
Flow
A) Material requisition By production Dept to
Stores
B) Purchases requisition By stores to purchases
C) Call for enquiries, Get quotations and
do price comparisons By purchase Dept.
D) Create purchase order Vendor number, Material
Quality,
Rate, Plant, Company code
Delivery
terms, payment terms,
Purchase
organization
E) Release It
is optional
It
will work through work flow
If P.O value is less than Rs.10000 To be released by manager purchases
If P.O value is Rs.10000 and above To be released by GM(Purchases)
And less than 100000 if P.O value is
10000 and above To be released by Director
Once we save the purchase order, based on
the value it goes to the inbox of the command authorized person, till is
releases we can’t take goods receipt.
F)
Goods receipt –With reference
to P.O
Inventory RM
local DR 100
To GR/IR clearing RM local 100
Balance sheet
current asset BSX
Balance sheet
current liability WRX
(Qty in GR*Rate
as per P.O)
G)
Invoice verification-Against
PO/GR
GR/IR clearing
RM local DR 100 Balance sheet CL WRX
To party 100 Balance sheet CL From
PO,
Party no. will be taken
i)
Raw material consumption
To inventory RM local 100 BS C/A(Current Asset) BSX
J) Wages payment
Wages
A/c DR 20 P
& L Debit
To
Bank 20 BS
CA
K) Production Receipt At
product cost
Inventory FG DR 120 BS C/A BSX
(FG =Finished goods)
To
INC/DEC in stocks FG 120 P & L Credit GBB
ZOF – In case of
on production order /CPP module not implement GBB AUF –in case of production
order (PP module implemented)
SD
steps
L) Delivery –At product cost
INC /DEC in stocks FG DR 120 P & L
Credit
GBB VAX –If sales account is not created as
revenue element (Co not implemented /GBB VAY –If sales account is created as
revenue element (Co Implemented)
To
Inventory FG 120 BS C/A
M) Sales
billing
Customer A/c DR 150 BS C/A From sales order, customer number will be
taken
To
Sales 150 P & L
credit ERL
LCL=Local
Inventory FG=Raw material consumption local
+wages
GR=Goods receipt
INC/DEC STK FG=Increase /Decrease stock
finished goods
P & L account
H) RM
can local 100 L)Sales 150
Wages 20 J)INC/DEC STKFG 120
Net
profit 30 K)INC DEC STK FG -120 0
------- -----
150
150
=== ===
Balance Sheet
Surplus in P & L Account 30 F) INV RM LCL 100
F)
GR/IR CLG RM LCL
100 H) INV RM LCL
-100
A)
GR/IR CLRG
RM LCL -100 0 ---------
0
a) Sundry creditors RM 100 I) Bank -20
j)
INV FG 120
K)INV
FG -120 0
L)Sundry
debtors 150
---- --------
130
130
=== ===
Integration
rules
A)
In material master we specify valuation
class
B)
For valuation class we assign
GL accounts based on the nature of transaction
C)
At the time of material
receipt/Issue stores person enters movement type, material number and quantity.
Our accounts will be up dated automatically based on accounts assignment to
valuation class which is specified in material master
Eg: Material no. Valuation Inventory postings GR/IR Consumption
BSX Clearing (GBB VBR)
(WRX)
RM1 (local)
3000 RM local 200121-INV-RM 100520-GR/IR 40000-RM
Local CLRG
RM LOCAL Consumption-IMP
Local
Raw Material
1.
Purchase order Material –RM1
Vendor
-1234
Qty-100
Kgs
Rate
5 Rs Save P.O.No.1
2. Goods receipt with reference to P.O-P.O No.1
Movement Type:101 Debit BSX 200121
Credit
WRX
Material RM1
Qty 60
kgs
Save
Material Doc no.200001
200121 –Inventory RM local DR 300
100520 GR/IR CLR RM Local 300
(Qty IN GR *Rate as per P.O)
60*5
Raw material consumption
Movement type 201 Debit GBB VBR Debit A/c No. 400000
Credit BSX 200121
Material RM1 3000
Qty 10
Kgs
200121
Inventory RM Local 50
(Qty issued * Moving average rate)
Imported
raw material
1. Purchase order Material
-RM2
Vendor
-4567
Qty-1Kg
Rate
-100 PO
No.2
1.
Goods receipt- with reference
to PO-PO No.2
Movement
type:101 Debit BSX 200122
Credit
WRX 100521
Martial RM2 3001
Qty 1
Kg
Save Material
Doc No.200003
100521 GR/IR CLRG RM IMP 100
(Qty IN GR* Bate as per P.O)
1*100
Raw material returns
Material doc no.200003
Movement Type 102 Debit
WRX 100521
Credit
BSX 100122
Material RM2 3001
Qty 1
Kg
Save Material
doc no.200004
200122 Inventory
RM IMP 100
Why
SAP does not support purchase accounting why it supports inventory accounting:
RM –Local raw material 1 2 3
Not included in purchase Bill received Less stock reported
Provision
statement by
stores
RM consumption=Qty Value
Opening stock 0 0 0 0
Add purchase 0 516.50 516.50
_____________________________
516.50 516.50
Less :Closing stock 300 300 200
------------------------------------------
Raw material consumption X X X
========================
Wrong wrong wrong
- Purchase order material no. RM1
Vendor 1234
Qty 100 Kgs
Rate 5 Rs
Excise 10%
CST 2%
Other
change 1%
Material
receipt:
We get excise invoice to claim cenvat
–Final invoice many come or may not come.
Only excise invoice received
Basic price 500
Excise 50
Stores person updates his records with the
above data.
Issue:
Not included in purchase provision statement:
Account Dep gets a statement from stores in
the month end material received bills not received to make purchase provision.
Stores person –By mistake he has not
included the above item in the purchase provision statement.
Account Dept.gets closing stock statement
from stores-in the statement he is showing 60 kgs stock at 5Rs.300
Issue2
–Closing stock valuation wrong
We have received invoice after words in
invoice
wrong
Basic 500 500
Excise 50 50
CST2% 11 11
Other 1% 5.5 5.5
------- -------- ---
Bill amount 566.50 516.50 50
Purchase a/c cenvat receivable
In the month end stores person sends
closing stock statement
60 kgs at Rs.5
Should be value 516.5/100*60=309
*Issue less stock reported by stores
If this month production is more,
profitability will be more.
If this month production is less,
profitability will be less.
Physical stock available -60 Kgs
Reporting to accounts only 40 kgs
40*5=200
Inventory accounting
1. Purchase order Material no.RM1
Vendor 1234
Qty 100
Rate 5
Tax
code A1 (10% Excise +2% CST) other charges 1%
2. Goods receipt with reference to PO no.1
Movement type 101
Material RM1
Qty 100
Save
Entry will be passed automatically
Inventory RM local DR 516.50
To
GR/IR CLR RM Local 516.50 Qty
in
GR*Rate as per PO
Store records : Material RM1
Qty :Value
Receipt :100
Kgs 516.50
Account records 200121 Inventory RM local
516.50
DR
3. Raw material consumption
Movement type 201
Material RM1
Qty 40
Kgs
Save
Accounting entry will be generated
automatically RM consumption local DR
206.5 (516.5) 100*40
To Inventory RM local 206.6
Qty issued moving .AVG price
Stores records: Material RM1
Qty Value
Receipt 100
Kgs 516.50
Issue 40
Kgs 206.6
------ ------
60
Kgs 309.9
Accounts records 200121 Inventory RM local
516.50
DR 206.60 DR
CL stock value 309.9
Price differences are two types
1)Batch method 2)Moving average method
|
-------------------------------------------------------
| | |
Stock
fully available Stock partly available Stock no available
1st method –Batch method:
RM1 PO PR
10 RS BILL for 12Rs
1.Material
Receipt
Batch Qty Rate Amount Inv RM local DR 1000 BSX
1 100 10 1000 To GR/IR CLR RM LCL/100 WRX
2 50 40 2000 2. Raw Material consumption
----- ----- RM consumption local DR 100
GBB VBR
150
3000 To INV RM local 100 BSX
10 10 100
--- ----
140
2900 3. Invoice verification
----- ----- INV RM LOCAL DR
140 3080 Price diff RM LCL 20 PRD 100*2
To Vendor 1200 form PO
vendor no. is taken
Break up
1 90 12 1080
2 50 40 2000
Preparation in P & L account :
Raw material consumption :
Raw material consumption +/ price difference
RM
Eg: RMC 100
PD RM 20
----
120
===
For the truncation key PRD –We can assign
raw material consumption account or price difference RM A/c
Moving average method: stock fully
available
RM1 PO Price :10 Final
Bill for Rs.12
Qty
rate amount 1. Goods receipt
Bill qty 100 10 1000
Inv.RM local DR 1000 BSX
50 40 2000
To GR/IR CLRG RM LCL 1000
---- ------ 2. Raw material consumption
150
3000 RM consumption local DR 400 GBB VBR
20 20 400 To INV RM local 400 BSX
---- -----
Average bill 130 2600 3.Invoice verification
---- -----
To Vendor 1200
form PO Vendor no.is
taken
Consumption rate:
Value / Qty 3000/150=20
Next consumption rate
Value / Qty 2800/130=21.54
3rd method moving average
method: Stocks partly available
RM1 PO Price 10Rs Bill
for 12Rs
1.Material receipt
Qty Rate Amount 1.
Goods receipt
Bill qty 100 10 1000 INV RM local DR 1000 BSX
50 40 2000 To GR/IR CLRG RM 1000 WRX
--- -----
150
3000
130 20 2600 2. Raw material consumption
----- ------ RM comp local DR 2600 GBB VBR
AVBL
QTY 20 400
40
TO inv RM local 2600 BSX
---- ----
20
440
3.Invoice
verification
Price diff RM DR 160
PDR
To Vendor 1200 from PO
vendor no.is taken
Consumption
rate
Value / Qty 30000/150=20
Next
consumption rate:
Value qty 440/20=22.00
Incase of batch method –It has checked
batch wise for the material.
In case of moving average method –if has
checked material wise.
4th Method-moving average
method: Stocks not available safety socks
RM1 PO Price 10
Rs Bill for Rs12
1.
Material receipt
Qty Rate Amount Inv
RM local DR 1000 BSX
Bill Qty 100 10 1000 To GR/IR CLRG RM LCL 1000WRX
50 40 2000 2. Raw material consumption
---- ---- ------ RM Consume local DR 3000 GBB
VBR
150
3000
150 20 3000 To INV RM Local
---- ----- 3. Invoice verification
AVBL Qty 0 0 GR/IR
CLRG RM LCL DR
To
Vendor 1200 form PO
vendor no.is taken
Sales
and Distribution Flow:
- Inquiry and quotation:
- Sales order : Product, Plant, Sales organization, customer no., quantity, rate delivery
terms, payment
terms.
- Delivery :With reference to sales order
A)
Delivery without post goods
issue (Delivery without PGI) ownership is not transferred.
Eg. Export sales
–Terms of delivery –FOB (Free on board)
Delivery without PGI Delivery
with PGI
No FI document only FI
document material
material document document
FI document :At product cost
Increase
/Decrease in stocks FG DR GBB VAY-If sales account is created as revenue
element (Co implemented)1
GBB VAX if sales
account is not created as revenue element (Co not implemented)
To inventory FG BSX
B)
Delivery with Post Goods Issue
(Delivery with PGI)
Eg. Local sales
terms of delivery –Ex works
Delivery with PGI
Sales
Billing: With reference to delivery
Customer account DR From sales order
To Sales :ERL
SD-Pricing procedure
Eg: 1 2 3 4
From R egion Andhra Andhra
Andhra Andhra
To Region Andhra Tamilnadu Andhra Tamilnadu
Customer Taxable Taxable Non-taxable Non-taxable
Material Taxable Taxable Non-taxable Non-taxable
Basic price
Excise % on basic
VAT % on Basic+Excise CST % on basic+ Excise
From H sales
Condition type: KOFI (Account assignment-FI)
KOFK (Account
Assignment –CO
Assignment
of accounts
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
|
Application area
|
Condition type
|
Chat of accounts
|
Sales origination
|
Account assignment group for customers
|
Account assignment group for materials
|
Account keys
|
|
|
V-Sales & Distribution
|
KOFI
|
BIL
|
HYD
|
01
|
03
|
ERL
|
300001 – Sales Local own goods
|
|
V-Sales & Distribution
|
KOFI
|
BIL
|
HYD
|
02
|
03
|
ERL
|
300002-Sales exports own goods
|
|
V-Sales & Distribution
|
KOFI
|
BIL
|
HYD
|
01
|
01
|
ERF
|
300003 Sales local trading goods
|
|
V-Sales & Distribution
|
KOFI
|
BIL
|
HYD
|
01
|
03
|
ERL Sales revenue
|
400350 –Freight Local own goods
|
|
|
|
|
|
01-Domestic revenues
|
01 Traded goods
|
ERF Freight Revenues
|
|
|
|
|
|
|
02-Foreign revenues
|
02 Services
|
ERB-Rebates /Trading Discounts
|
|
|
|
|
|
|
03-Afflicated company revenues
|
03 Finished goods
|
ERS Sales Deductions
|
|
Note :ERS :Sales commission
Bank 5000
From customer 5000
Reimbursement
of expenses
No comments:
Post a Comment