Complete mm and fi related postings needed-urgent

Question

dear friends,
i am in need of complete mm- fi related postings.
kindly help
regards,
flemmings

Answer 1

Inventory Accounting Entries
All the Inventory transactions will look for the valuation class and the corresponding G.L. Accounts and post
the values in the G.L accounts.
            For Example: during Goods Receipt
            Stock Account - Dr
            G/R I/R Account  -  Cr
            Freight Clearing account - Cr
            Other expenses payable - Cr
            During Invoice Verification
                  G/R I/R Account - Dr
                  Vendor - Cr
When the Goods are issued to the Production Order the following transactions takes place:
             Consumption of Raw Materials - Dr
             Stock A/c - Cr
When the Goods are received from the Production Order the following transactions takes place:
              Inventory A/c - Dr
              Cost of Goods Produced - Cr                    
              Price difference - Dr/Cr
             (depending on the difference between standard cost and actual cost)
When the Goods are dispatched to customer through delivery the following transactions takes place:
               Cost of Goods Sold - Dr
               Inventory A/c - Cr
When the Goods are issued to a Cost Center or charged off against expenses the following transactions takes place:
               Repairs and Maintenance - Dr
               Inventory A/c - Cr
When the Goods are stock transferred from one plant  to another, the following transactions takes place:
                Stock A/c - Dr (Receiving location)
                Stock A/c -  Cr (Sending location)
                Price difference - Dr/Cr
               (due to any difference between the standard costs between the two locations)
When the stocks are revalued, the following transactions takes place:
                 Stock A/c - Dr/Cr       
                 Inventory Revaluation A/c - Cr / Dr
When the Work in Progress is calculated the following transaction takes place:
                 Work in Progress A/c - Dr
                  Change WIP A/c - Cr
Physical verification /shortages and excesses :  Shortages/excesses on authorizations shall be adjusted using the physical inventory count transaction.   
Sales and Distribution Accounting Entries
INVOICE GENERATION
Invoices will be generated at the Smelters  and stock points. The accounting entries for the sale of goods despatched will flow from the Sales invoice generated in SAP Sales and Distribution module. The following entries shall be passed
    Customer Account      Dr
    Revenue                                                 Cr
    Excise Duty Payable                               Cr
    Sales Tax Payable (local or central)         Cr
Note: As mentioned above in the FI document, which is created in the background, the SD invoice number shall be captured. However as per the current accounting procedure the accounting entry passed is as follows :-
     Customer Account      Dr
     Revenue                                                 Cr
     Excise Duty Billed                                  Cr
     Sales Tax Payable (local or central)        Cr
     Excise duty paid a/c     Dr
     Excise duty payable a/c                          Cr
EXPORT SALES
There have been very few export transactions in the past. SAP system will be designed to handle export business. Exports are mainly from the mines and will be handled at the mines, however the documentation part will be taken care at the Head Office. The accounting entry is:
     Customer Account        Dr
     Revenue (Exports)                                  Cr
The realisation of export sales will be directly credited to the bank.  The accounting entries will be as follow:
     Bank                            Dr
     Customer                                               Cr
     Exchange Fluctuation    Dr/ Cr
The accounting entries will be:
      Rebates/Discounts        Dr
      Customer                                               Cr
DEBIT MEMOS
Debit Memos shall be issued in case of price difference, sale tax difference and interest on usance period and  overdue payments.
The accounting entries for two possible scenarios are as follows:
      Price Undercharged:
      Customer Account        Dr.
      Revenue                                                 Cr.
      Sales tax payable                                    Cr.
      Sales tax undercharged
      Customer Account         Dr.
      Sales tax adjustment                                Cr.
Interest on delayed payments/usance period and other charges
      Customer Account         Dr.
      Interest Others                                        Cr.
In case of HZL  a complete retirement or a partial retirement of asset is done. The system uses the asset retirement date to determine the amount to be charged off for each depreciation area. The existing accounting policy is to provide depreciation for the full quarter in which the asset is sold/discarded, recommended that the depreciation be provided from the date of acquisition on prorata basis .
Accounting entry for sale of Asset to customers:
        Customer Account               Dr
        Asset Sale                                              Cr
        Accumulated Depreciation   Dr
        Loss on Sale (if applicable)  Dr
        Asset Sale account              Dr
        Asset account                                         Cr
         Profit on sale (if applicable)                    Cr
Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected  the entry is posted to the GL Account (Sales Tax Payable)
Accounting entry for sale without a customer:
          Accumulated Depreciation    Dr
          Loss on Sale (if applicable)   Dr
          Asset Sale account               Dr
          Asset account                                      Cr
           Profit on sale (if applicable)                 Cr
Accounting entry for scrap
           Accumulated Depreciation    Dr
           Loss on Sale of Assets         Dr
           Asset account                                      Cr
SALE OF SCRAP
The sale of scrap (non-stock) shall be mapped as a direct manual FI entry. The customer will be created as a FI customer. No Logistics module will be involved in the process.
A FI Invoice will be prepared for the sale of scrap with the following entries:
              Customer                           Dr
              Sale of Scrap                                    Cr
              Excise Duty Payable                         Cr
ADVANCES FROM CUSTOMERS
Advances are received from the customers against delivery. These advances will be recorded in a special general ledger account. The accounting entry for the same will be: 
              Bank Account                      Dr
              Advance Customer Payments            Cr
These advances will be later on adjusted against the invoices raised on the customers. Advances can be adjusted against more than one invoice at the time of clearing of the invoices against advances.
              Adjustment of Advances
              Customer Account                             Cr
              Advance Customer Payments  Dr
A financial document would be created for each Bank Guarantee received and this document number will be referred to in the Sales Order which would then monitor the value and the validity of the of the Bank Guarantee instrument wise while doing the billing.The letter of credit /Bank guarantee given will be recorded as a noted item.
Accounting Entry for Goods receipt
                Stock/Inventory account         Dr
                GR/IR account                                   Cr
                Freight clearing account                      Cr
Accounting Entry on invoice verification of supplier
                GR/IR                                    Dr
                Vendor account                                  Cr
Accounting Entry on invoice verification of freight vendor
                Freight clearing account          Dr
                Freight Vendor account                       Cr
GOODS RECEIPT
Based on the Purchase order and the Quantity actually received Goods Receipts (GR) will be done. Based on the GR done the following accounting entry will be passed in the Financial Accounts
                  RM/PM Stock Account       Dr
                  GR/IR Account                                 Cr
                  Freight Clearing Account                   Cr
EXCISE INVOICE VERIFICATION
On receipt of the excise invoice *** gate pass the following entry will be passed
                   RG 23 A / RG 23 C Part 2 Account    Dr
                   Cenvat Clearing Account                              Cr
Vendor Invoice Verification Accounting Entries
VENDOR INVOICE VERIFICATION
The detail process related to invoice verification is documented in Materials Management Document.
On receipt of vendor bill the following entry will be passed:
  GR/IR Account     DR
  Freight Clearing Account   DR
  Cenvat Clearing Account   DR
  Vendor Account    CR
Invoice Verification for Foreign Vendor
On receipt of vendor bill the following entry will be passed:
  GR/IR Account      DR
  Vendor Account     CR
Invoice Verification for Custom vendor
On receipt of Vendor bill the follo wing entry will be passed:
1)  RG 23A/RG 23C Part 2 A/c (CVD) A/c  DR
     Cenvat Clearing A/c     CR
2)  G/R I/R A/c     DR
     Cenvat Clearing A/c    DR
     Vendor A/c                          CR
3)  Cost of Material A/c    DR
     Vendor A/c (Customs)   CR
Invoice Verification for Freight / Clearing Agent
  Cost of Material A/c    DR
  Vendor A/c (Clearing Agent)  CR
Invoice Verification for Octroi Expenses
   Cost of Material    DR
   Vendor A/c (Octroi)    CR
TDS (Work Contract Tax) for Service Orders shall be calculated and deducted accordingly.
The following entry will be passed on bill passing:
  Expenses Account    DR
  Vendor Account     CR
  TDS Account    CR
The material shall be returned to the vendor using the
  Return to vendor movement type in SAP
  Creating a Return PO
These transactions will be processed in the MM module.
The accounting entries will be :
Returns after GRN
  GR/IR A/c   Dr
  Stock A/c   Cr
The accounting in respect of debit / credit memos for FI vendors, the process will be similar to that of invoice processing.  The accounting entries will be:
  On issue of debit note
  Vendor Account    DR
  Expenses Account   CR
In respect of import vendor - capital goods exchange differences are to be accounted manually through a Journal Voucher for capitalization.
Exchange rate differences will be accounted at HO. An example of the accounting entry in this case shall be:
Invoice entry @ 40 INR: 1 USD
  Asset / Expense A/c   DR  100
  Vendor A/c    CR  100
Payment Entry @ 41 INR: 1 USD
  Vendor A/c    DR  100
  Bank A/c    CR  110
  Exchange rate loss Capital A/c DR    10
  Asset A/c    DR   10
  Exchange rate loss Capital A/c     CR   10
A new G/L account shall be created for the special G/L transactions.
The accounting entry for making the down payment shall be:
  Advance to supplier  account    Debit
  Bank A/c      Credit
When the invoice is booked the following entry is passed
  GR/IR account      Debit
  Vendor account     Credit
  Clearing of Invoice against Down Payment
  Vendor A/c       Debit
  Vendor down payment account   Credit
Wherever, TDS is applicable, the TDS will be deducted at the time of down-payment to the vendor.
Down Payment for Capital (tangible) Assets
Down payment to vendors for capital acquisitions is to be reported separately in the Balance Sheet under the head Capital Work in Progress.   Hence down payment for capital goods would be tracked through a separate special general ledger indicator.
The procedure to be followed is:
Definition of alternative reconciliation accounts for Accounts Payable for posting down payments made for Capital assets
Clearing the down payment in Accounts Payable with the closing invoice.
A new G/L account shall be created for the special G/L transactions.
The accounting entry for making the down payment shall be:
Vendor Advance for Capital Goods Account Debit
  Bank A/c      Credit
When the invoice is booked the following entry is passed
  Asset A/c /  Asset WIP    Debit
  Vendor A/c      Credit
Clearing of Invoice against Down Payment
  Vendor A/c       Debit
  Vendor Advance for Capital Goods Account Credit
The Following are the TDS Rates (to be confirmed with the recent changes)
  Particulars Tax Rate Surcharge Rate Total
  Contractors – 194 C 2% 5% 2.10%
  Advertising – 194 C 1% 5% 1.05%
  Prof. Fees – 194 J 5% 5% 5.25%
  Rent – Others – 194 I 15% 5% 15.75%
  Rent – Company – 194 I 20% 5% 21%
  Commission – 194H 5% 5% 5.25%
  Interest  - Others – 194 A 10% 5% 10.50%
  Interest – Company – 194 A 20% 5% 21%
  Special Concessional Tax
  Works Contract Tax
SECURITY DEPOSITS /EARNEST MONEY DEPOSIT RECEIVED FROM  VENDORS
  Bank A/c                              DR
  Security Deposit Vendor   CR
EMD to give the age so as to enable the same to be transferred to unclaimed EMD account.
PAYMENT OF TOUR ADVANCE DOMESTIC TOURS
Employee Advances will be paid by the Accounts Department unit wise based on the requisition or recommendation of the respective departmental head.
  Employee Travel Advance A/c  DR
  Cash / Bank Account   CR  
Banking Transaction Financial Accounting Entries
Settlement Of Tour Advances Domestic/Foreign
1) Settlement of advance will be done by the Accounts Department based on the Travel Expense Statement submitted by the employee, which is approved by the Concerned Department Head.
2) Expenses  Account                         DR
     Cash/Bank  Account                       DR  (if, refund)
           Employee Advance Account                                            CR
            Cash/Bank Sub ledger Account                                       CR  (if, payable)
3) Banking Operations - Maintenance Of Bank Master
4) A House Bank is a combination of a Bank and a Branch. Account id is the account number. A house bank can have multiple account IDs.. There could be a main account as also payable account, which will be defined as separate account ids. General Ledger accounts have to be created for each combination of a house bank and account ID. The bank master details are to be provided by HZL.
5) General Ledger accounts have to be created for each account ID in the house bank. Bank Account Master data will be maintained by the Finance Department centrally.
6) Each house bank and account ID combination shall have one main general ledger account and several sub accounts mainly based on broad transaction types. These sub accounts are necessary to facilitate automatic bank reconciliation process in R/3 system.
Bank Accounting
7) The accounting entries will be generated automatically according to the posting rules attached to the Transaction type. The following accounting entry is passed by the system in respect of cheque deposit on account of collection from domestic customers.
    Bank cheque deposit account         Debit
           Customer account                                                         Credit
8) In this case, a bank sub account is selected based on the transaction code entered by the user. The customer account is cleared i.e. invoice is cleared against the receipt. In respect of any other deposits, the relevant accounts to be credited will depend on the nature of transaction.
9) Payment against bills for collection. Based on the bank advices falling due on a particular day one payment advice is made debiting the vendors and crediting bank.
Cheque Deposit - Customer Receipts
10) All cheques received from customers shall be accounted at the point of receipt.  The entry posted shall be
                          Bank  Sub account  Dr
                                   Customer Account    Cr
Cheque Deposit - Other Than Customer Receipts
11) All  other receipts will be accounted through the Incoming Payment Transaction of the Accounts Receivables module.
Cheque Bouncing – Other Than Customer Receipts
12) Based on the information of cheque bounced from the Bank, the accounts Department will pass accounting entries for the cheque that have been bounced. The procedure to handle bouncing of a cheque has been discussed under the following
13) Reset the clearing document – If the document has been cleared i.e. an    open outstanding item has been cleared against an incoming receipt, then the clearing document has to be reset to its original status of open item. This process is known as reset of cleared document.
14) Reverse the entry passed for cheque deposited earlier – Once the document has been reset it will be reversed. The following accounting entry will be passed.
                          FI Customer       DR
                                   Bank cheque deposit account  CR
15) In case of cheques being damaged while printing, the concerned cheques no. has to be voided and the payment will be rerun.
thanks and regards,
G.V.SHIVAKKUMAR
9894150275
[email protected]