LC - Accounting Treatment

Dear Friends:
In Letter of Credit, 25% is paid in cash,75% through bank by customer. For Bank Payments, I am using F-28 - In coming PAyments.
For Cash, should i select Cash Journal? If the customer wants to show the full amount in one GL Accounts, How should i proceed?
All the advise will be greatly appreciated.
Regards
msreddy

Hi,
Please enter the Cash & Bank entries in Cash Journal. Please check at your end. If problem is solved , assign points. As mode of receipt is different , we need to enter differently.
Thanks
D.K.Lakshmi Narayana

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Accounting treatment when there is Qty and price diff in PO Vs GR & Invoice

Hi Experts,
just wanted to understand what is the accounting treatment when there is a difference in PO Vs GR & Invoice.
with regards
Ramesh Y

Hi
If there is Price difference between PO and Invoice following accounting takes place.Lets assume PO value is Rs 90 and Invoice send by the supplier is of Rs 100. and provided you have allowed sufficient tolerence then
1)If material stock exists
then during MIRO
Vendor account Cr 100
GR/IR Clering Dr 90
Stock account Dr 10
2) If material stock doenot exist
Vendor account Cr 100
GR/IR Clering Dr 90
RM Consumption Dr 10
Regards
Sandeep

Accounting Treatment for CWIP (AUC)

Please Explaing me the Accounting Treatment for Capital Work In Progress.
what are the accounts we need to create for CWIP ( AUC ), & Whats the treatment in SAP.
As per my Knowledge when an asset under con, following entries will be effected.
1. 01.04.06 to 31.03.2007. ( Asset Under Construction ).
    CWIP Exp (P&M) A/c Dr 5000
        To Bank A/c                       5000
(For Exp incurred for CPWIP)
2. Capitlized on 01.04.2007.
      Plant & Machinery A/c     5000
           To CWIP Exp (P&M)             5000
( being Asset has been capitalized on 01.04.2007)
please guide me whether the above details correct or not.
if wrong please send me the procedure for CWIP.

Your entries are correct. In SAP you can settle AUC in two ways
Ist Method
1. Create AUC under 4000 asset class
2. Make postings to AUC through f-90
3. Make distribution rule using T Code AIAB
4. Settle the AUC using TCode AIBU
In step (3) you can distribute the amount spent on AUC to two or more assets otherwise you can give only one asset and then settle the AUC through AIBU.
2nd Method
1. Create an investment order (KO01)
2. System automatically creates AUC under asset class 4001
3. Enter distribution rule in the same screen ( like in the (3) above) or just give a cost center or an asset.
4. Post payments through F-90 and give the order number in that screen
5. Then settle the AUC using TCode KO88
Radha

COGM Account treatment in FSV

Dear Experts,
Please elaborate about COGM account creation and treatment in FSV?Its a big confusion and unable to find any sol for the same.
any SAP documentation or Notes for it is very highly appreciated.
Please help
Rgds
Praveen S

Hi Praveen,
COGM account should be created as cost element category 1.
It should be included in FSV (P&L statement) under direct costs.
BR
Abhi

ASSET ACCOUNTING TREATMENT

HI,
I created the Asset PO mentioning the asset number and its GL which is assigned during the asset creation with asset class.
While doing GR no accounting document available and when posting invoice it is crediting to vendor and debit to that asset GL..
But the entry in my view should be like that vendor credit and GR/IR debit.
Kindly clarify the same
Regards

Dear sir
while creating PO you have given account assignment category A-asset. correct
in customization for account assignment category A- asset , GR Non-valuated indicator clicked.
while creating PO automatically GR non-valuated indicator will be clicked .
so when you do GRN no accounting document will generate, at the time of MIRO accounting document will genereate.
so check your PO GR Non-valuated clicked or not in item delivery tab.
regards
jrp

Bank facility and accounting treatment

hi,
1 down payment, BOE and guarantee. why only down payment has financial impact? because touch on bank account?
2 noted item can be cleared?
3 why statistical posting for BOE and guarantee no financial impact?
thanks
rgds

Hi,
1) Down payment has an impact on financial immediate but BOE and Guarantee is handled by bank. But when the ultimate payment happens, accounting for the same too happens.
2) Noted items are cleared. For example - When a down payment request is created, it is cleared when i make a payment against it (customization can be done to include it in F110).
3) BOE and guarantee will have a financial impact when the final payment happens. It will depend on the kind of terms agrred with the bank. The system we have for BOE at our clients place is - We have a payment method for the purpose and run F110. The instruction is passed to the bank and the bank makes the payment to the vendor on behalf of my client. The clients bank account is debited only after 2 months (as per the agreement).
Hope tis helps.
Thanks and Regards,
Anit

R12: Long Term Liability accounting treatment

Dear all,
I would like to know how Long term liabilities (Loans, lease etc) are treated in Oracle.
How is the payments + inerest of the lease treated in Payables?
Can anyone explain the flow how to treate this from Fixed Asset(FA) --> Payables --> General Ledger --> Cash Management?
Thanks a lot
Vik

in Oracle FA --> Setup --> Leases

VAT /SALES TAX ACCOUTNING TREATMENT

Hi all,
i have seen that there are certain tax conditions which are defined as inventorised and certain condition are defined as set off. my queries are :-
1 ) What is meant by set-off and inventorised.
2 ) how the set-off takes place
can somebody send me a document about accounting treatment of VAT in India. what is set-off/inventorised explaining all these terms.
my mail id is [email protected]
regards
sachin

Set off means- eg: Cenvat - ed cenvat
inventorised means - you cannot claim cenvat or credit, the cost needs to be included in inventory value.
regards
anantha

Dummy profit center and profit center clearing account being used

Dear Gurus,
We are implementing ECC 6.0 and will have FI PCA.
I have 2 profit centers.(and one dummy profit center 9999)
1)RM common
2) FG1
When RM is issued to production order and order is confirmed, the goods movement are 261 and 101 respectively.
the entry at the time of confirmation is
Discription                          Profit center
Consumption of RM             9999
To RM inventory                RMCommon
FG Inventory dr                  FG1
To Factory output account 9999
What should actually happen is instead of 9999 consumption of RM should hit profit center RM common and instead of 9999 the factory output account should hit FG1.
The profit center clearing account is being used for the entry in the GL view (as opposed to entry view in accounting)
Only then will accounting treatment be correct.
I have checked field statuses of the respective accounts and they have profit center and segment as optional fields.
Can you suggest what may be wrong and where i need to change the splitting config.
Regards,

Hi
Profit Center is derived from the assignment of Profit center in material master in costing view.
In the production scenario,
Consumption of raw material Dr - PC of FG
Cr Stock of RM - PC RM
Dr Stock of FG - PC FG
Cr confirmation of production of the Finished goods - PC FG
The reason for that is the production order is created with respect to the Finished Goods, master data of the production order inherits from the Finished goods.
Regards,
Suraj

Treatment to reverse asset from external acquisiton that already run deprec

Dear Gurus,
One asset is the user want to reverse 3XXXXX. The asset from external asset acquisition with ttype 100. My question is how treatment for this problem. The asset already run deprecition. If the user receive will it make problem to accounting treatment?
Here the posting to the asset 3010161 from financial accounting document
1 31 1000009239 ADXXXXXXXXXXXX                            34,222.00
2 70 2034101    000003010114 0000                                 4,264.24
3 70 2034101    000003010160 0000                                   820.28
4 70 2034101    000003010161 0000                                   820.28
Can the user using Journal or reverse the aset document?
Edited by: Muzaidi Marjuki on Dec 29, 2010 3:08 AM

Hi,
An asset posting can be reversed using transaction AB08.
For the already posted depreciation an adjustment posting posted when reversing. Once running the depreciation program the depreciation adjustment will be posted also.
Kind regards,
Brigitte

Is it possible to add a field to OKEK in configuration SCREEN?

Hello SAPPERS,
I would appreciate if someone could provide some input on the following issue.
Is it possible to add a field to Define Account Determination for Internal Goods Movements (OKEK)?
This table determines the GL accounts assigned when inventory is moved between plants. Is it possible to add another column to the left hand side? I would add the receiving plantu2019s VGCd, if possible. Even better would be a profit center group (1100 for all 11xx profit centers for example).
I know there are two ways to add field to the DB Table. They are INCLUDE and APPEND structure.
Is it possible to append a field to table V_T8A00, and display it in config screen OKEK?
Thanks for any advice

Hello,
On a transfer, the accounting treatment is different when the move is within the same division VS when it goes to another division.
When plant 1101 ships to plant 1102, we donu2019t want to post to account 360100. When plant 1101 ships to plant 1301, we do want to post to 360100. Having the receiving profit center group in the mix will enable this distinction.
Thanks in advance

Is it possible to add a field in Attachment screen?

Hello Exports,
I wan to know is it possible to add a customer field in Attachment screen (Project, RFx,MA, A) . As there are a lots of attachments added in normal working in various documents like project,MA,RFX etc, so whether can add a field to categorize the attachment like it is project added attachments or RFx add attachment?
Would appreciate your comments.
Thanks & Regards,
David

Hello,
On a transfer, the accounting treatment is different when the move is within the same division VS when it goes to another division.
When plant 1101 ships to plant 1102, we donu2019t want to post to account 360100. When plant 1101 ships to plant 1301, we do want to post to 360100. Having the receiving profit center group in the mix will enable this distinction.
Thanks in advance

Testing strategy after legal merge of two company codes

Hi All,
This is my first integration project. Please help me out with my query:
My company is going through a merger and we have merged two company codes.
for e.g. company code 1 is in ABC company and company code 2 is in XYZ company. ABC is buying XYZ company. This means that company code 1 will remain and company code 2 will merge into company code 1. They are going to bring in the open line item AR/AP data from company code 2 into company code 1.
Any of you guys who have worked on an integration project before please guide me to some documents online or state some kind of testing strategy to adopt to test after the legal merge has taken place. I am mostly looking for a strategy to test intercompany process.
Thanks,
MS

Hi
There are lot of issues that you need to take care of:
1. is there any relation bwteeen the two company codes before merger. have they done any transactions between them? If yes, what wewould be the accounting treatment for the same. Would it be transferred at cost or Cost+Price (Transfer Price)
2. If you are in India, there would be effects of taxation like excise and vat calculations
3. One of the most important issue, is that of the new fiscal year. What strategy would you follow for the merged entity? In Sap, changing a fiscal year is a critical issue. Request you to refer SAP Help for the same. There are notes available for the same
4. What would be the strategy for Asset valuations? Are there different asset valuation procedures followed in the two company codes?
Thanks & regards
Sanil K Bhandari

Details on Data cutover activities during merger of 2 company codes

Hi all,
Basically we have 2 companies which will be merged to one. what would be
the data cutover activities (MM perspective) during merger?
May I know more details (particularly transaction details) on
Inventory upload,
physical inventories and value adjustments,
other open items/ balances in financial accounting,
Open PO and PR
Thanks in advance
Regards
JJ

Hi
There are lot of issues that you need to take care of:
1. is there any relation bwteeen the two company codes before merger. have they done any transactions between them? If yes, what wewould be the accounting treatment for the same. Would it be transferred at cost or Cost+Price (Transfer Price)
2. If you are in India, there would be effects of taxation like excise and vat calculations
3. One of the most important issue, is that of the new fiscal year. What strategy would you follow for the merged entity? In Sap, changing a fiscal year is a critical issue. Request you to refer SAP Help for the same. There are notes available for the same
4. What would be the strategy for Asset valuations? Are there different asset valuation procedures followed in the two company codes?
Thanks & regards
Sanil K Bhandari

Valuation of foreign exchange forward with NPV split for interest vs FX impact?

Hello,
I have the following business requirement regarding the accounting treatment of the valuation of a foreign exchange forward deal :
1. during the lifetime of the deal
step1. valuation
          the deal should valued at its NPV using the swap points curve (table AT15) => that gives the "VALUE"
     BUT
step 2. the posting of the deal's value should be SPLIT into TWO components
               a) component 1 = linearly amortized swap points since deal date +2   until valuation date     => to be classified to interest result
               b) component 2 = VALUE - component 1                                                                                => to be classified to unrealized fx result
Comment.
So, in fact it is some hybrid combination of the two SAP standard valuation methods
               a) spot/spot + swap accrual + swap valuation (but NO NPV calculation)
               b) NPV calculation (without any split in components)
2. at maturity
     realized fx result :     calculation based on deal spot rate versus spot rate at maturity
     interest result :          calculation based on deal spot rate vs deal forward rate
Don't see how this "mixted behavior" can be achieved by customizing the valuation process.
Please help.
Best regards,
Carl

Hi Carl,
In order to use the 2step valuation during the lifetime of forex contracts, you need to combine 2 valuation steps in your Position Management Procedure:
1. step 6 Rate valuation for forward exchange transactions: spot-spot
2. step 4 Security valuation
Additonally, if the NPV should be calculated based on swap points from AT15, you need to apply BAdI JBA_SFGDT that is able to adjust TPM60 or/and reports in MRA if needed. See SAP note 0000940562 for details (and also 1941874 for extrapolation issues).
As far as i know, at maturity you can only have 1flow of gain/loss by using standard SAP Solution.
Best regards,
Piotr

LC - Accounting Treatment

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