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Former Member
Oct 15, 2013 at 05:37 PM

Materials Management Business Scenario



I am looking for assistance regarding the processing of the following business scenario.

We have a piece of equipment that we do not own as we have rented it.

The rental is for a full year and the total amount is paid at the start of the year. We wish to have this transaction captured in the Materials Management Module and integrated with the General Ledger via Invoice Verification and Accounts Payable.

The functions used in SAP should allow for the following accounting entries:

1.1.13 [at start of year - posting of the Invoice]

Debit Prepaid Expense 144,000.00

Credit Vendor a/c 144,000.00

1.1.13 [at the start of the year - posting of the Payment]

Debit Vendor a/c 144,000.00

Credit Bank a/c 144,000.00

At the end of each month we want each months rental to be posted as follows [144,000/12]:

Debit Expense a/c 12,000.00

Credit Prepaid Expense a/c 12,000.00

If we want to achieve the above what functionality should we utilize in SAP [Materials Management and GI] to achieve the above.

Any guidance you can provide would be greatly appreciated.