Accrual of incured expenses

Dear Experts,
I have a client who purchase office stationeries. Now i have created a Non-Stock item called stationery. They raise a PO and when the supplier supplies this goods they do a GRN. But the supplier doesnt invoice this goods. The customer wants at GRN level they accrual this expense so my double entry is: DR: Expense Account, CR:Accrual Account then when the get the invoice and do the AP invoice my double entry is: DR: Accrual Account, CR:Supplier. Please Note this is for a Non Stock item called stationery. How do i go about this someone with a smart idea.
Regards,

Hi Gordon,
My aim is to first accrual the expense before i receive the invoice.
i want at point of receiving this goods i accrual the expense then when the supplier gives me the invoice i realise the expense.
so at GRN
DR: Expense Account
CR:Accrual
at AP Invoice
DR:Accrual
CR:Supplier
so this is for my non-stock item. Please let me know how i can acheve this cause my Non Stock item doesnt have a double entry on GRN level.
Regards

Similar Messages

Provision and accrual

hi,
in the chart of account, i notice there are provision and accrual account. for example, provision for employee expense (48xxxxxx) and accrual for employee expense (39xxxxxx).
1) may i know what is the difference for these 2 account.
2) under what circumstance i need to use provision or accrual?
3) double entry should be the same. debit p&l and credit either provision or accrual. correct?
thanks

hi,
Accrual is income earned but not received or expenses incurred but not spent.
a double entry for an accrued interest income:
Intrest accrued a/c    Dr
Interest account        Cr.
Provision is making provision from the profit for a specified or known expense which is to be met in unknown future.
An entry for salary provision should be:
Salary Expenses            Dr.
Provision for Salary ex.    Cr.
Regards

Inter-company expenses

Hi all,
Consider the example:
Assume that there are 3 companies belonging to the same business group, represented as 3 different company codes, say A, B & C, in the same SAP system [P01].
Now, company A incurs expenses on behalf of companies B & C say travel expenses of the MDs of companies B & C.
CASE 1:
Inter-company clearing accounts are set-up between the company codes in the SAP system [P01] and hence Inter-company posting of expenses happen as below:
Books of A:
Dr Inter-company B A/c 5
Dr Inter-company C A/c 5
Cr Bank / Vendor for expenses 10
Books of B:
Dr MD's Travel exps A/c 5
Cr Inter-company A A/c 5
Books of C:
Dr MD's Travel exps A/c 5
Cr Inter-company A A/c 5
Can anyone let me know the relevant program through which this functionality has been enabled in SAP FI.
CASE 2:
Assume that company A is on an SAP system [P02] that is different from that of the other company codes B & C [P01].
Now, taking the same example as above, is it possible to use the same standard SAP inter-company functionality in FI to post the inter-company expenses from company A to companies B & C?
Is there is any other alternative solution ?
Some gyan please..
Bhargav

Hello,
You can post the cross company code postings even between two controlling areas. The system does not prevent to post documents between two company codes in two controlling area. Need not necessarily they should be under one operating concern. Provided you have to make sure that you have followed the following points:
In OBY6 - To company codes must be assigned to same Company, meaning that you mus thave created a Company and that company must have been assigned to these two company codes.
OBYA - You should maintain the clearing accounts in both the company codes. Meaning that you are posting one leg in one company code and the other leg in the other company. Therefore, it is required to have the missing legs in each company code.
Company Code1 - Posting Key 40 - Clearing Account
Company Code1 - Posting Key 50 - Clearing Account
Company Code2 - Positng Key 40 - Clearing Account
Company Code2 - Posting Key 50 - Clearing Account
OB08 - In case if the two company codes have different local (company code) currencies, you may maintain the exchange rates.
You can now go to F-02 and post a cross company code transaction giving the first leg in first company code and the second leg in second company code. Missing leg in the first company code will be posted to the GL Account mentioned in OBYA and the missing leg in the second company code will be posted to the GL Account mentioned in OBYA. That means you will have four line items overall.
The system will post three document.
Document 1 in First Company Code
Document 2 in Second Company Code
and
Document3 - Cross Company Code Document.
The cross company code document consists of the first company code document number plus company code plus last two digits of the fiscal year.
Hope this must have clarified your doubts.
Please let me know in case if you need further details.
Thanks,
Ravi

Asset Under Construction Expenses

Dear Friends,
My Client is in the process of construction of building.He is incurring expenses like labour charges, cement and other building material.
For Construction of building, creation of assets under consutrction is necessary
How to account for expenses incurred in construction of a building.
What is the process and what t.codes have to used.
All the help will be greatly appreciated.
Regards
Sridhar

HI
You can capture the AuC Cost using any of the below procedure :
"IO as IM" section in the step - 9 create desired asset master (plant)
"AuC using line item settlement" section in the step - 8 create desired asset master (plant)
Internal Order as Investment Measure:
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2. Define the Asset Class u2013 for Main Asset - OAOA
3. Define Investment Profile - OITA
a. Assign the AuC Asset Class (Step-1) in the investment profile
4. Assign Investment Profile to Model Order - OITA
5. Define Order Type (Investment) - KOT2
a. Settlement Profile - OKO7
b. Maintain Allocation Structures - OKO6
c. Planning Profile - OKOS
d. Budget Profile - OKOB
6. Create an Internal Order - KO01
a. With the Investment Profile (Step-2)
b. AuC automatically created by the system using Asset Class given in the Investment Profile
7. Post the amounts to IO - FB01
8. Settle the amounts to AuC from IO (Prcg type: Automatic) - KO88
9. Create the Main Asset - AS01
10. Settle the amounts to Main Asset from AuC(Prcg type: Full) - KO88
AuC using Line Item Settlement:
1. Define the AuC Asset Class (with Line Item Settlement) - OAOA
2. Define the Asset Class u2013 for Main Asset - OAOA
3. Define Order Type (Overhead) - KOT2
4. Create an AuC-Asset (using Step-1 Asset Class) - AS01
5. Create an Internal Order - KO01
a. Assign the AuC u2013 Asset in Settlement Rule in IO
6. Post the amounts to IO - FB01
7. Settle the amounts to AuC from IO - KO88
8. Create Main Asset (using Step-2 Asset Class) - AS01
9. Assign the Main Asset in IO (Step-5) - KO02
10. Settlement AuC u2013 Line Item List - AIAB
11. Settlement AuC - Receiver - AIBU
SKS

Production Internal Order

Hi Guys
What is a production Internal order?
how do costs flow to Internal orders and where do we settle these orders to.
thanks
srikanth

Internal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks. The SAP system enables you to monitor your internal orders throughout their entire life-cycle; from initial creation, through the planning and posting of all the actual costs, to the final settlement and archiving.
Internal Order is one of the master data in controlling module.
Assign Internal order to production order by selecting (either in CO01 or CO02)
Header ---> Settlement Rule
Enter ORD as Account Assignment category, Enter Internal Order Number in Settlement Receiver Field, Enter % and Enter Settlment Type.
Carry out all production activities.
After perfoming TECO, Execute Settlement Transaction KO88. The cost will be settled to internal order after performing K088 successfully.
More Info about Internal Order:
You can create an internal order to monitor the costs of a time-restricted job or the costs (and revenues, if required) for the production of activities. Internal orders can also be used for the long-term monitoring of costs.
Overhead cost orders are used for the time-restricted monitoring of overhead costs (that are incurred when you execute a job) or for the long-term monitoring of parts of the overhead costs.
Investment orders let you monitor investment costs that can be capitalized and settled to fixed assets.
Accrual orders enable you to monitor period-related accrual calculation between expenses posted in Financial Accounting and the costing-based costs debited in Cost Accounting.
Orders with revenues let you monitor costs and revenues that are incurred for activities for external partners, or for internal activities that do not form part of the core business for your organization.
You can use model orders as a reference, when creating new internal orders.

Is there any way to create fields reports users can enter data into?

I am using Crystal XI to develop reports for my company and have not received any formal training on it. I'm learning it fairly well through the help files.
One of the reports I need to create summarizes our scrap, rework, and additional incurred expenses for our monthly quality reports. Most of the information is stored in the main program used by all employees, a very small amount of it is not. I have created sub-reports for each of the different types of costs that are tracked in the system.
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Is defining parameter prompts in the Crystal Report and displaying it in the report a possible workaround?
If you define parameter prompts, then Crystal will query the user before running the report - so this would be problematic if the user needs to reference data in the report to enter appropriate values (one possibility then is to use interactive parameters feature available in CR 2008).
Sincerely,
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Cost Carrying Over in Drop Ship Processing

Hello Experts...
When doing a drop ship sales order, this is the following situation. Item A has cost at Warehouse 01 (stock warehouse) of $400 and cost at Warehouse 03 (drop ship warehouse) of $425.
When doing a drop ship sales order, the correct cost of $400 from WH 1 is displayed initially until the WH is changed to WH 3, then it displays WH3 cost of $425. However, when the Purchase Order Confirmation Screen is displayed, the cost reverts back to $400. We have done a test 15 times in the Demo SAP B1 and even more information is not passed on using the "Copy To" function (for example, the Delivery does not pick up any costs - it is blank when processing a drop ship).
Of course it could be changed at the Purchase Order Confirmation Screen, BUT a real simple statement comes up of why does a Sales Person have to change it when the cost is in the system and is displaying correctly on the Sales Order. From a common sense perspective of financial matters and productivity, it takes the statement even further - why even put a cost on the Drop Ship Warehouse when the system does not pick it up. It gets even worse when the Gross Profit comes out to being 100%. The whole drop ship process seems to be a mystery in the SAP Documentation.
QUESTION: Is there some setting that needs to be changed so that the correct drop ship cost is carried throughout the system automatically and all of this wasted time is cut out?
The user guide published on Februrary 2009 covering this topic does not say anything about COMPLETE drop ship processing and cuts off at the display of the Purchase Order Confirmation Screen on page 6.
Thanks - Zal

Hello Julie - thanks for your reply...version is 2007 SP01 PL05...
Maybe the problem with the cost being carried over with "Copy To" was corrected in PL07? Will go to the release notes...
This is getting to be a comedy - again, I am using and testing this function on SAP's provided "vanilla" Demo database with no changes, so if SAP cannot set up drop ship functioning properly on their own Demo, who can???
OK - yes, the cost of the product is pulled from the associated vendor which is problem number one - for companies that sell both inventoried and drop ship items on a regular basis, the cost of that product is never the same. For vendors, onsies and twosies being shipped to our customers incurs a higher expense than a shipment to one site of 100 or 200 items and they will quote a different cost to cover those expenses. It just makes common sense that the vendor's incurred expenses to fill the drop ship versus shipment to our waregouse is going to be different, doesn't it? Therefore the actual cost and dollars paid for the product will be different from WH01 over WH03 (or any other area - Base Price versus Discount Purchase Price), and the gross profit is going to be different between the two versions of a sales process. Creating a thousand different price lists certainly is not the answer!
And this begs a very simple question then - why even put in an item cost on the Item Inventory Tab for the drop ship warehouse AND why does the system pull the WH 03 dollar amount into the Sales Quotation/Order Gross Profit Base Price field but not transfer it to the Purchase Order? Why create a constant flood of erroneous Gross Profit information on drop ship AR invoices unless you are happy to have wasted productivity?
I think the real problem is that this is obviously a very bad design for an SAP B1 function and folks are doing all of these workarounds and extra steps (at least in PL05 so far) to get their work done. I think it is hilarious that when trying to enter a ticket directly to SAP on this, I got the reply that "that is the way the system is designed" (albeit bad design and no effort to direct me to documentation) and had to post my question here according to new SAP B1 support standards.
I am going to close this question as there really is not an answer except "way the system is designed" and this thread is leading nowhere.
Many thanks to everyone who took the time to reply - lol - of course, thanks with points!!!
Take care all - Zal

Weak support of Nokia and Suppliers for Touch-and-...

Hello friends!
After a long time of recherche, searching information, reading test reports and opinions in forums and testing lots of mobiles, I finally came to the result, that my e52 is the best solution in my case although it is not perfect - with its calender (s40-calender was much better, with better items and simpler parameters) and its T9 (typing on my s40-3120c is double time quicker than on the e52).
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BUT:
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The problem is in the end, that Nokia forgot to implement a possibility to simulate cursor keys with the touch pad, e.g. "left" is pressing left area or moving from right to left. Tapping in the middle would be th Nav button.
With such a adapter/converter it would be possible to use every tool for S40 and QVGA screen on the c3-01 and x3-02.
So actually those mobiles are great ones - but without apps and without maps But IMHO it is not that important e.g. for pedestrians to know the own position, but it is important, WHERE somebody can find WHAT, e.g. where is that restaurant? With a browser you can find out the adress, but then again one has to hask somebody for the way to that adress.
I used a normal simple s40-phone before, but it hat Google Maps, and only today I looked for a watch service, and I could find the place and the way to that service. With a c3-01 there would have been NO WAY.
Maybe somebody at Nokia reads this proposal - Touch-and-Type is a brilliant idea, but something very essential is still missing.
Best regards,
Schlaumy
"Two beer or not two beer?"

Sorry to hear about the lack of navigation on the C3-01. I was looking at this phone to replace my E51, but I do not want to give up navigation (which works OK on the E51 with the not-approved-by-Nokia version of Ovi Maps posted on this forum, coupled with Maps Booster, only available for purchase outside the USA!). The E52 does sound like the best, but there is no North American version.
Isn't it incredible how Nokia willfully conspires to not quite make the candy-bar phone everyone would want? They so cleverly avoid the obvious home run that I suspect they are afraid it would cannibalize sales from higher end models.
Is Nokia so distracted by the iPhone that they have failed to notice that they are the only contenders for a small, unlocked, international, one-handed phone with long battery life that can nevertheless do Internet, Email, navigate and play music--all without incurring expensive network-connection charges (ie. able to use WLAN)?
Here's what I want, and I am sure many others would too:
unlocked
all international frequencies, voice and data
long battery life
one handed operation: nice T9 keyboard with T9 Nav built in
all frequencies of WLAN
bluetooth
Ovi Maps
Maps Booster built in
SmartConnect built in
sturdy candy-bar form
screen as large as C3-01
sunlight readable display (as E51)
USB charging
USB data access
MicroSD card
3.5 mm stereo
Internet browser as good as E51
IMAP email as good as E51
Come on, Nokia, we know you can make it!
For goodness sake, you're already making the iPhone Nano--now do you understand?

How to maintain petty cash dept wise cash journal entry(FBCJ)?

Dear All,
Cash journal fund transfer department to department (ex. Finance dept to Sales dept)
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*I example given one scenario
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Finance dept sending Rs.10000
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Sales dept will do it some expenses through cash.
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Thanks & Regards
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Dear SAP Student
It is just like inter unit cash transfers. Also each department is spending cash on its own. Now that I would like to know the balance cash departmentwise.
As you said if I receive and pay through vendors I would be in a position to know only vendor wise balances. It does not serve my very purpose of deparmentwise balance of cash.
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F-03 and fbra

hi,
what is f-03 clear gl account? what is the purpose of this tcode?
what is fbra reset clearing? what is the purpose of this tcode?
thanks
rgds

Hi,
If a GL Account is created as an open item managed GL Account, the Account can be cleared for debit and credit entries and the net balance in the account can be known.
Examples of Open Item Managed accounts are GR/IR clearing / Accrual Accounts / Prepaid Expenses etc. In case of GR/IR clearing account, the entries posted are as under:
(a) When Goods are receivced:
     Dr. Inventory A/c.
     Cr. GR/IR Clearing Account.
(b) When Invoice is received from Vendor:
    Dr. Vendor A/c.
    Cr. GR/IR Clearing Account.
In the above example the amount posted to GR/IR account will be same normally but with Debit and credit signs. Hence, these can be set off. When the clearing is done both the open items will be cleared items. A clearing document will be posted but it will not have any line items.
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Thanks
Murali.

Student Societies fund raising budgeting using FM & GM

Hi:
At client we have around 70 societies of students established for various activities. For doing these activities they need funds, for that most of the time they raise funds externally, from various sponsors they arrange money and that money is deposited in client banks accounts, against that money they incur expenses. Here there is another situation where client funds societies from internal funds to meet societies expenses in case there is delay from sponsor in fund availability , client provides funds to societies and when the grant award is received from sponsor , the differential of the financed amount is transferred to client own accounts.
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Regards

Hi Shyamal:
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OPEX XYZ Society_Expenses SOCIETY1 2M
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Regards

Why do we need Segment Reporting?

Dear Experts,
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Basically what's the difference?
Regards,
Abraham

Hi Abraham,
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IAS
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IFRS
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How to default Ledger to SLA.: Create Subledger Journal Entry

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steps:
1. AP-> ACCOUNTING
Subledger Journal Entry Headers:
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Dear SAP Student
It is just like inter unit cash transfers. Also each department is spending cash on its own. Now that I would like to know the balance cash departmentwise.
As you said if I receive and pay through vendors I would be in a position to know only vendor wise balances. It does not serve my very purpose of deparmentwise balance of cash.
I agree with Selva to go in for creating deparmentwise cash journals in the company code since each deparment is incurring expenses also and each department wise balance is also required.
Aravind

Fiscal Period and MM period.

Hi all,
Can somebody explain the difference b/w Fiscal Period and MM Period in business context. Detail explanation will be helpful.
thanks & regards,
Prashant Rathore.

Dear,
Fiscal Year Definition
Usually a period of twelve months for which a company regularly creates financial statements and checks inventories.
The fiscal year may correspond exactly to the calendar year, but this is not obligatory.
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Fiscal Year Structure
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In order to assign business transactions to different time periods, you must define a fiscal year with posting periods. Defining the fiscal year is obligatory.
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u2022     Year-end closing
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u2022     (Time-based) accruals/deferrals of expenses and revenues
u2022     Creating the balance sheets and P&L statements
u2022     Documenting the posting data
Prerequisites
To carry out the closing operations in G/L accounting, you first need to carry out the closing operations in the subledger accounting areas you are using. These include:
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u2022     Inventory accounting
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u2022     Payroll accounting
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Accrual of incured expenses

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