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Former Member
Mar 28, 2015 at 04:04 AM

In transit accounting entry


Hi experts

Please guide in below requirement.

Procurement scenario: Import procurement in India with custom conditions in import PO line items.

In case of import procurement, confirmation key is maintained in each line item of import PO which allows us to create Inbound delivery. Inbound delivery is created once the material is received at the Port or customer receives shipping confirmation from the supplier. Then, Customs payment invoice (custom miro) is posted for custom conditions for making the payment to Indian customs department for releasing the material from port to plant. Then, excise/custom is captured (in J1IEX) giving reference of Inbound delivery and custom miro document followed by posting of GR at Plant giving reference of Inbound delivery and custom Miro document.

Requirement: There should be an accounting entry at the time of Inbound delivery as under:

Transit material - Debit

Transit material liability – Credit

And automatic entry at the time of GR:

Transit material - Credit

Transit material liability – Debit

Please suggest if there is other alternative.