B/S and P/L Accounts

Question

Hello Experts,
Could you please let me know more in detail the differences between B/S and P/L accounts.
For Ex: in the purchase to pay cycle
Dr Inventory
Cr GR/IR A/c
Dr GR/IR A/C
Cr Vendor A/C
Dr Vendor A/c
Cr Cash A/C
so in the flow - i guess the vendor and cash a/cs are b/s a/c and gr/ir and inventory is a p/l account.
Am i right ?
All answers would be duly rewarded with points.
Thanks,
Nandita

Answer 1

A typical flow of entries in SAP from production / sales perspective-
1. Raw material procurement
Dr. Raw matrial inventory (B/S)
Cr. GR/IR clearing (B/S)
2. Production process - Issue of material
Dr. Consumption (P/L)
Cr. Raw matrial inventory (B/S)
3. Production process – conversion cost
Dr. conversion cost (P/L) – secondary cost element in SAP
Cr. conversion cost (P/L) – secondary cost element in SAP
4. Production process – Goods receip into stock
Dr. Finished stock (B/S) (including conversion & raw material cost)
Cr. COGM - Cost of goods manufactured (P/L)
5. Sales process – delivery to customer
Dr. COGS - Cost of goods sold (P/L)
Cr. Finished stock (B/S)
6. Revenue -
Dr. Customer (B/S)
Cr. Revenue (P/L)
Hope it clarifies.
Regards,