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Accounting entry based on Incotems

Mar 08 at 11:10 AM

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Former Member

Hi

We have requirement from client that for inco terms other than EXW we shall have below entries at the time if PGI and Invoice

PGI

Dr Stock in transit 85

Cr Inventory 85

VF01

Dr Customer 118

Cr Sales clearing 100

Cr GST Payable 18

When risks and transfer of title has been completed

Dr COGS 85

Cr Stock in transit 85

Dr Sales clearing 100

Cr Sales revenue 100

For incoterm EXW client wants the normal entries at the time of PGI and Invoice.

There is no difference aa per material and customer but the change in nature is on the basis of Incoterm only

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2 Answers

G Lakshmipathi
Mar 08 at 11:48 AM
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I don't understand when the Inco terms will have an impact on selling price, why you were relating to inventory? If at all, you wanted to add any additional transportation cost to inventory, then, search Google with the text "freight to cogs" so that you will find a blog and couple of discussions on this topic. Take the inputs from there and achieve the requirement.

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Former Member

Hi Laxmi,

Thanks for the information

I am rephrasing it as business needs only the accounting entries. pls ignore the values

PGI

Dr Stock in transit

Cr Inventory

VF01

Dr Customer

Cr Sales clearing

Cr GST Payable

When risks and transfer of title has been completed

Dr COGS

Cr Stock in transit

Dr Sales clearing

Cr Sales revenue

For incoterm EXW client wants the normal entries at the time of PGI and Invoice.

There is no difference aa per material and customer but the change in nature is on the basis of Incoterm only.

Please advise on this. Many thanks

Manish

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Whenever you add any post to your original query, please do so under "Comment" and not under "Answer", as you were not answering to a query but only providing additional informations as required by the member. Meanwhile, I have converted your above post from Answer to Comment.

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G Lakshmipathi
Mar 08 at 01:09 PM
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Did you brainstorm with your FI team internally as the requirement what you are expecting can be tried from FI side. Also, I am not sure, whether you made any efforts in searching SCN or Google before posting here. When I searched in Google with the text "stock in transit debit entry", I could see couple of discussions taken place in SCN. Take the inputs from there, try in your system first and still if you need any inputs, post here with your findings.

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Former Member

Hi Laxmi,

I already did a brainstorm and google/forum search for this topic.

As per my finding I can choose the

EHP5 LOG_MM_SIT_Functionality to get the entries after PGI.

But it involves POD.(Business do not want POD)

To bypass POD before invoice i have to write a custom data copy control routine.

Also I can get the desired entries at invoice through including payment terms in table at VKOA.
For this alos I have include payment terms in structure KOMPCV.

Then to get the entries after the risks/title has been transferred then again through custom code I have to get the correct entries

Dr Sales clearing

Cr Sales revenue

Also POD now to get below entries

Dr COGS

Cr Stock in transit

The whole solution involves custom development. I also considered about SD-Revenue Recognition or SAP RAR.

My question here: "Is there any standard solution available in SAP for this?"

"This requirement from business is as per the accounting standards to be followed for any listed company so how other clients are catering to it?"

In one of the searches for similar query you replied to raise it to SAP.

Please advise.

Regards

Manish

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