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Former Member
Mar 09, 2015 at 02:20 AM

Journal Entry for Cost of Sold for Direct Materials/Factory Supplies

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Hi SAP Gurus,

Our company products do not have taxes because we are under Income Tax Holiday.

However, due to excess materials, we are going to sell those direct materials that will result to tax imposition.

With regards to that, will it be possible to create an entry like this for cost of sold for Direct Materials/Factory Supplies?

Debit Raw Material Parts xxxx

Credit Other Income xxxx

To account for Cost and at the same time, it will be deducted on total proceeds from sale.

How will it be possible?Steps for config?Am I going to make another valuation class?Posting keys etc?

Thank you very much.

Best Regards,

Athena