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Former Member

Accounting entry based on Incotems


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


Dr Stock in transit 85

Cr Inventory 85


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

  • Mar 08, 2018 at 11:48 AM

    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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    • 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.

  • Mar 08, 2018 at 01:09 PM

    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.