Customer Invoice in FI

[Former Member]

Dear All,

              Want to understand the concept behind Posting Customer Invoice in F.I directly (without Sales and Distribution) via T-FB70.

Concern points are :-

1) We are posting customer invoice and will receive payment ,this means Revenue will increase but against what we are generating the revenue because book of accounts must reflect Goods/ Service against Revenue ?

2) Which G/L account will be used to post invoice & receive payment from Customer ?

3) How taxes will be routed via Customer invoice through F.I ?

4) What are Business scenario's for which we need to perform Customer Invoice via F.I ?

Thanks

MJ

[Former Member · Accepted solution]

Hi,

1) We are posting customer invoice and will receive payment ,this means Revenue will increase but against what we are generating the revenue because book of accounts must reflect Goods/ Service against Revenue ?

    If Sales invoice is related to services, give expenses GL A/c & Customer A/c.

    If related to goods, give inventory or other GL A/c & customer A/c.

2) Which G/L account will be used to post invoice & receive payment from Customer ?

          Expenses A/c will be debited and customer a/c is credited while posting Invoice.

          Bank clearing A/c will be debited and customer account is credited while receiving payment.

3) How taxes will be routed via Customer invoice through F.I ?

          Mention Tax code i.e. output tax Percentage while posting Invoice.

4) What are Business scenario's for which we need to perform Customer Invoice via F.I ?

       If the client is doing service, can use customer invoice through FI.

Regards

Raghu

[Former Member · Accepted solution]

Hello ,

1)  As per my understanding about Accounts Receivables, company send Customer Invoice via F.I to customer which increases the Company Revenue and debits the Customer account rather than hitting the company expense G/L  .At time of payment receipt via bank , the Customer Invoice is cleared.

2) Regarding G/L : Miscellaneous Revenue G/L might be used rather than normal Sale G/L account .

3) Agreed Tax code will be used for applicable taxes .

4) Business :In case of some petty items  for which no stock is maintained .

Regards

MJ

[Former Member · Accepted solution]

Your understanding is right.

[Former Member · Accepted solution]

Thanks for inputs and confirmation.