Accounting effect for Gain / Loss while doing sale of material

[Former Member]

Dear All,

We are planning to implement one of the our company in SAP which is in Shipping business.

One scenarios is below mentioned :

Ex. We are having Fuel stock of 1000 Ltrs * 10 Rs (MAP) = 10,000 Rs (Inventory Value)

Now we wanted to sale out the same inventory to customer at the rate of 15 Rs/Ltr.

So, valuation would be 1000* 15 Rs / Ltr = 15,000 Rs.

Now we wanted to book Rs 5000 as gain during selling and accounting entry should be below one (It can be the same scenario if we are selling same fuel at rate below Rs 10/ Ltr and we will be having loss):

Customer A/c Dr 15,000

To Sale of Material A/C 10,000

To Gain/Loss A/C 5,000

Pls let me know I should I map the same in SAP SD and FI integration point of view?

Thanks,

Taral Patel

[ajaycwa1981]

Hi Taral bhai

1st of all, this requirement is not correct.... Across the world, the inventory valuation principle says "Cost or Market price whichever is lower".... Your requirement itself is not genuine

Secondly, it cant be achieved by any means... P&L is always calculated at the global level... You cant have this at each entry level... In your case, COGS will be 10000 and Customer debited @ 15000.. So, the profit is automatically 5000.... P&L will have a credit for 15k and debit for 10k, resulting in a profit of 5k....

What you are expecting is not correct and not possible also

br, Ajay M

[ajaycwa1981]

Hi Taral bhai

1st of all, this requirement is not correct.... Across the world, the inventory valuation principle says "Cost or Market price whichever is lower".... Your requirement itself is not genuine

Secondly, it cant be achieved by any means... P&L is always calculated at the global level... You cant have this at each entry level... In your case, COGS will be 10000 and Customer debited @ 15000.. So, the profit is automatically 5000.... P&L will have a credit for 15k and debit for 10k, resulting in a profit of 5k....

What you are expecting is not correct and not possible also

br, Ajay M

[ajaycwa1981]

Hi Taral bhai

1st of all, this requirement is not correct.... Across the world, the inventory valuation principle says "Cost or Market price whichever is lower".... Your requirement itself is not genuine

Secondly, it cant be achieved by any means... P&L is always calculated at the global level... You cant have this at each entry level... In your case, COGS will be 10000 and Customer debited @ 15000.. So, the profit is automatically 5000.... P&L will have a credit for 15k and debit for 10k, resulting in a profit of 5k....

What you are expecting is not correct and not possible also

br, Ajay M

[ajaycwa1981]

Hi Taral bhai

1st of all, this requirement is not correct.... Across the world, the inventory valuation principle says "Cost or Market price whichever is lower".... Your requirement itself is not genuine

Secondly, it cant be achieved by any means... P&L is always calculated at the global level... You cant have this at each entry level... In your case, COGS will be 10000 and Customer debited @ 15000.. So, the profit is automatically 5000.... P&L will have a credit for 15k and debit for 10k, resulting in a profit of 5k....

What you are expecting is not correct and not possible also

br, Ajay M

[ajaycwa1981]

Hi Taral bhai

1st of all, this requirement is not correct.... Across the world, the inventory valuation principle says "Cost or Market price whichever is lower".... Your requirement itself is not genuine

Secondly, it cant be achieved by any means... P&L is always calculated at the global level... You cant have this at each entry level... In your case, COGS will be 10000 and Customer debited @ 15000.. So, the profit is automatically 5000.... P&L will have a credit for 15k and debit for 10k, resulting in a profit of 5k....

What you are expecting is not correct and not possible also

br, Ajay M

[ajaycwa1981]

Hi Taral bhai

1st of all, this requirement is not correct.... Across the world, the inventory valuation principle says "Cost or Market price whichever is lower".... Your requirement itself is not genuine

Secondly, it cant be achieved by any means... P&L is always calculated at the global level... You cant have this at each entry level... In your case, COGS will be 10000 and Customer debited @ 15000.. So, the profit is automatically 5000.... P&L will have a credit for 15k and debit for 10k, resulting in a profit of 5k....

What you are expecting is not correct and not possible also

br, Ajay M

[Former Member]

Hi,

In sap the purchase is booked from the MM module and the sales is booked from the SD module. Hence it will not be possible to get the profit or loss at each entry level. You can see this at the p&l level only and not at entry level.You can try internal order for this purpose.

Regards

Milind Sonalkar

[Former Member]

Dear Milind,

Thanks for the reply.

Kindly suggest me how can i make tracking of the same scenario through the route of internal order.

Thanks,

Taral Patel

[Former Member]

Hi Taral,

I am not sure how to track it through IO, you may try it by manually inputting it. The only issue here is if there are multiple entries , then it will become very difficult to track . You may try to create a automatic noted item entry , with the help of abap,with reference field as material number. This is just a development possibility which you need to develop with abaper.

Regards

Milind