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Feb 26, 2009 at 03:28 AM

Changing from Periodic inventory system to SAP

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Hi All,

I have an accounting questions regarding company that switching from Periodic Inventory system to SAP's perpetual inventory system.

For company that practices Periodic Inventory System, the method to calculate cost of goods sold = opening stock balances + purchases - closing stock balances. All these is reflected in the P&L statement.

When they switch to SAP, do they need to enter all these figures into SAP for the opening balances?

As SAP will not have opening balance stock, closing stock and purchases accounts, do they have to create these accounts in P&L just to take in the balances?

Does anyone have implemented for company that changing from periodic to perpetual inventory system? How do you take in the opening balances? if possible please give example, thanks in advance.

Regards,

MH