sales postings to accounts

[Former Member]

Hi

I have following SD scenario. please explain as to how postings are done at each stage to accounts

sales order: 20 pcs, $10 per pc

Goods issue: 20 pcs delivered, $10 per pc, standard price $8 per pc

Invoice: 20 pcs, $10 per pc

Incoming payment: $200

thanks

[Former Member · Accepted solution]

While posting accounts, basic rule is

• each business transaction is posted at least two different accounts

• debit postings always appear on the left side of a T account

• credit postings always appear on the right hand side of a T account

• Total debit postings = Total credit postings.

In SD business transaction, an accounting document is created at the point of goods issue and/or invoice creation.

For your scenario, following postings take place. I can't explain it in real T account type but providing account wise detail

- At the point of goods issue, the goods physically leave the warehouse. This results in a stock-related and value-related posting. This means that the stock is reduced and the materials used increased. The posting is therefore called "Materials used to stock".

Material account (Expenses) Debit side $160 (20*$8)

Stock account (Assets) Credit side $160

- At the point of billing, receivables are accumulated by the customer, and additions are posted to sales revenues (posting record: Receivables to sales revenues).

Receivables account(Assets) debit side $200 (20*$10)

sales revenue account(Revenues) Credit side $200

- If the incoming payment is made in FI, the receivables are reduced again and the amount of the cash inflow is posted to a bank account (posting record: Bank to receivables).

Receivables account (Assets) Credit side $200

Bank Account (Assets) Debit side $200

[Former Member]

Hi

I have following SD scenario. please explain as to how postings are done at each stage to accounts

sales order: 20 pcs, $10 per pc

NO FI POSTING

Goods issue: 20 pcs delivered, $10 per pc, standard price $8 per pc

FI POSTING :

Stock (finished goods) Dr $160

Cost of (Finished) Goods Sold Cr $160

Invoice: 20 pcs, $10 per pc

FI POSTING :

Customer Account Dr $200

Sales (Domestic/ Export Depending on the cust Account Group) Cr $200

Incoming payment: $200

FI POSTING :

Customer Account Cr $200

Bank A/c Dr $200

thanks

[former_member184555]

Hi

In SD scenario the postings takes when the Billing document is created.

The postings that takes place during PGI is related to MM and it is the result of the MM Account Assignment. The postings(debit and credit) happen for the COGS(Cost fo Goods Sold) and the Value of the inventory.

The posting of Incoming Payment is taken care by the FI.

The Accounting documents that are created during Billing ae.,

1. Accounting document

2.Profit centre document

3.Special purpose ledger

4.Profitability analysis

5.Controlling document.

Thanks,

Ravi

[former_member217082]

Hi wen

In sales order there wont be any postings

Once you do PGI for 10pcs @8/- each the value will update in the G/L accounts and the inventory level will come down

Once you do Invoice for these 10pcs@ 20/- each the amount Rs200/- will get posted to the respective G/L accounts , as if Rs200/- is ERL then for that there will be a G/L account assigned . To that G/L account the amount get posted

Regards

Srinath