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Former Member

Is proforma Invoice necessary for STO process

Hi Gurus

I have one confusion in assiging proforma invoice for normal STOs and Depo STOs. I f we assign the same there wont be any accounting entries right? then why is it necessary to have a proforma invoice to be created instead of one normal invoice in STO?

Regards

Gino Babu

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2 Answers

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    Former Member
    May 20, 2013 at 08:54 AM

    Hi Gino,

    Yes, you are right there will not be any accounting entries with proforma invoice. The Only thing we need proforma invoice in case of stock transfer orders is to generate excise invoice in which accounting entries will be passed. To create excise invoice in sap we need reference billing document which carries the flow of excise duty values. So, we are creating proforma invoice. When you are despatching finished goods from a manufacturer end those goods are liable to pay excise to the goverment. So excise invoice creation is mandatory.

    Hope it is clear

    &

    Let me know if have any doubts.

    Regards,

    S.Himavanth.

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  • May 20, 2013 at 10:20 AM

    Dear,

    If we assign the same there wont be any accounting entries right? then why is it necessary to have a proforma invoice to be created instead of one normal invoice in STO?

    You can very well create One Invoice that is Normal Invoice for accounting purpose instead of creating another proforma invoice ( two invoices ,Proforma and normal invoice ) .

    Note : Actually , Proforma invoice is creating for proof of Billing to customer .In some companies ,first they will create proforma invoice immediately when they created delivery  and later some days or weeks they will create original invoice and excise invoice .

    If you have any doubts please let me know .

    Thanks,

    Naren

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