Purchase a/c vs inventory a/c

hi gurus,
i have a confusion about following topic.
Why SAP does not support purchase accounting why it supports inventory accounting
Regards,
manoj

Hi Srinivas,
Thank you for your reply
Go to OBYC and enter GL accounts at
EIN - Purchase account and
EKG- Purchase offsetting account.
Now I want to clarify 2 points
1. Along with inventor dr we are creating posting to Purchase account means creating twice in the system ?
2. Now extra 2 accounts are creating
Purchase account u2013 type of account is PL Account ?
Purchase offsetting account. Is it PL Account ?
Thank you
Anil

Similar Messages

How to add sales history and purchase history without affecting inventory.

In order to help client migrating sales and purchase history into B1.
I checked through the Business One objects reference file. I couldn't find any object that allow adding historical record into both Sales or Purchase history, via DIAPI.
Do I have to always depend on the Sales Invoice object to add the document and let it affect the inventory level.

No, you can't add historical data without affecting GL and Inventory. In SAP B1 any invoice addition thru DI API will automatically behave like the regular B1 process and it will post to GL and inventory.
I saw in the partner edge portal SAP B1 forum a post from an SAP employee that is working on developing a process where historical data will be able to be migrated without afecting inventory and GL. But there is no ETA on when this will be available.
Regards,
WB

MM-PURCHASE & INVENTORY

<Moderator Message: Please search the forums and/or the online help for this type of information. You will find a lot of stuff related to this. Come back with specific questions.>
Hi frnds,
Can anybody send me MM-Purchase and MM-Inventory dataflows.
Regards,
Marasa.
Edited by: Siegfried Szameitat on Jan 19, 2009 4:50 PM

Hi
MM-Purchase Flow
1) Purchasing Requsition -- sent by inventory dept to purchasing dept
2) Request for Quotation(RFQ)-- Purchasing Dept shall ask the vendors to give the quotation for the requested materials by inventory.
3) Quotation --Quotation is sent by vendors to the company
4) Purchase order-- Based on all parameters of a quotation sent by vendors. Vendors are selected from whom the material has to be obtained. The company gives purchase order to the vendor.
5) Good's receipt --vendors sends the goods to the company with goods receipt
6) Invoice verification -- this done based on good's receipt. this means that the ordered goods have reached or not.
7) Payment -- payment is done based on invoice verification.from (FI/CO)
Inventory Data Flow
http://www2.egr.uh.edu/~araguram/disstratdfd.htm
Hope it helps

Commitment for inventory purchase

Hello experts,
our customer it is requesting us to manage commitment not only with direct consumption purchases but also with inventory purcahses. I found that the inventory account can be set as "Cost Element Category" = 90 Statistical cost element for balance sheet.
It seems that with this category I can manage a statiscal cost for balance accounts (such as the inventory account). But the thing is that in order to get this statistical cost I need to assign an account assingment category and a cost allocation object in the purchase order so that I can allocat the statistical cost in the order (as this is the requirement from the customer).
My question is, for sure this is something I can get using account assignment category "Q" and projects. But is it possible to achieve the same result by using "F" and orders??
In thi end, the requirement from the customer is to manage commitment for inventory purchases.
Best regards

Thank you for the information.
For anyone that has a problem creating balance sheet cost elements in the future please refer to SAP Note 75980.
This Note provides guidance on error KS036 that stops a cost element from being created from a balance sheet account. The Note gives steps to remove error message KI098 which indirectly deactivates message KS036 to allow a cost element to be created.

SAP Inventory A/c Vs Purchase

Hi Experts,
Client wants to use the Purchase account instead of Inventory account.
As per SAP, while Goods receipt time, based on a/c determination Posting to inventory
Inventory A/c Dr
To GR/IR A/c Cr
As Client expecting
Purchase A/c Dr
To GR/IR A/c Cr
Main Three concerns
1. If I am using the Inventory account, how will I see my purchase?
2. As purchase Account capture my supplier bill amount but inventory is capture Supplier bill add with fright + Insurance +... hence same inventory value use to Goods Issue for production. Hence I need purchase account separately
3. Finally, Even he wants to show Balance sheet as Schedule VI.
Now I request is there any strong point to overcome and convince the client
Thank you
Anil

Hi Srinivas,
Thank you for your reply
Go to OBYC and enter GL accounts at
EIN - Purchase account and
EKG- Purchase offsetting account.
Now I want to clarify 2 points
1. Along with inventor dr we are creating posting to Purchase account means creating twice in the system ?
2. Now extra 2 accounts are creating
Purchase account u2013 type of account is PL Account ?
Purchase offsetting account. Is it PL Account ?
Thank you
Anil

Reversing A/P Invoice posted with wrong date and inventory cost adjustment

Here's the situation:
We had a PO dated 9/1/09 for items with a cost of $14.50, a Goods Receipt was entered 9/15/09 for the items with the same cost on the PO of $14.50. Somehow the order got lost in the mix and the AP invoice wasn't entered until today, with a posting date of 1/21/10 and the cost was corrected per the original vendor invoice to the right amount of $19.33. The invoice was actually dated 9/15/09. This resulted in hitting the vendor, purchases clearing and the inventory account (for the cost adjustment) in January 2010 when it should have occurred in September 2009.
The inventory itself has come and gone in the time between the GR and when the invoice was done with the incorrect date. Normally I would try to reverse the transaction with a Credit Memo and start over, however since the inventory side happened so long ago, I don't see any way of easily going backwards. I thought about doing service CM/invoice but what I am most concerned about is having the inventory valuation occur properly at the correct time. I'm not sure how to go about this.
Using SAP B1 2007A PL42 with moving average inventory.
Any thoughts would be appreciated.

Nicole,
I am afraid you may not have ability to do the adjustment based on historical date that long times ago. You know, the moving average has limited calculation based on current quantity and cost. There are no options to go backward especially new year is coming.
Thanks,
Gordon

Questions on Rules-Based ATP and Purchase Requisitions for STOs

Hello experts,
We are working on rules-based ATP configuration and have several questions about the functionality. Iu2019m hoping that some of you are using this functionality and can help give us direction.
In our environment we have multiple distribution centers and multiple manufacturing plants. We want to confirm sales orders against stock and production orders in any of those plants, depending on the locations that have stock or planned production. For example, we will place a sales order against plant A. If there is not enough stock in plant A then rules-based ATP will use location determination to check in plant B, then C. The scope of check on the ATP check will include stock and released production orders. We will configure plant A as the u201Cconsolidation locationu201D so if stock is found in plants B or C then stock transport orders will automatically be created to move the stock to plant A before shipping to the customer.
We have configured rules-based ATP and this functionality is working well in our Development system. The ATP check is executed and uses the rules-based ATP to find eligible stock in other plants. The system is also creating purchase requisitions to move the stock to the consolidation plant.
Our first concern is that there doesnu2019t appear to be any firm linkage between the sales order and the resulting purchase requisition. For example, if we create sales order 123 for plant A and the rules-based ATP finds stock in plant B it automatically creates a purchase requisition 987 to move the stock from plant B to plant A. However, there doesnu2019t appear to be a linkage between sales order 123 and purchase requisition 987. For instance, if we delete sales order 123 the purchase requisition doesnu2019t get deleted.
Our second concern is that the quantity on the purchase requisition can still be confirmed against later sales orders. For example, say the above scenario resulted in a purchase requisition 987 that consumed all the stock available in plant B. We then create a second sales order 456 for the same product. Plant A is out of stock so the rules-based ATP looks in plant B. We would expect that plant B would also not have any stock because itu2019s all been consumed by the purchase requisition. Instead, the system creates a second purchase requisition to move quantity from plant B to plant A. Itu2019s as if the system doesnu2019t realize that the purchase requisition 987 is already planning to move stock out of plant B.
Does anyone have any thoughts or suggestions on these two scenarios? Is there a way to configure the system so there is a hard linkage between the sales order and the purchase requisition so that if the sales order is deleted then the purchase requisition is also deleted? Should ATP realize that purchase orders are consuming inventory and not allow later sales orders to confirm against that same inventory? Any advice or experience would be greatly appreciated.
Thanks,
David Eady
Application Delivery Team Lead
Propex, Inc.

Hi,
The scheduling is done in SCM, and from there, whenever the RBA is triggered, the calculation is done always with the old route in SCM. Until you get back to R/3 this is when your route is determined. But the ATP check is always with the original route. So the idea would be that you change the values of the route while still in APO, this is possible via the user exit. Should be done in scheduling in APO.
Hope this information is helpful.
Regards,
Tibor

Automatic creation of purchase orders at goods receipts

Dear guru ,
I want to create purchase order when i execute GR Returns (mvt 161).
Where I define the purchase order document type that I want to automatic create ?
Thanks.

Dear,
Before configuration of setting for creation of Purchase Order automatically, consultant needs to under stand the business requirement and he should be aware of the difference between the different components of Material Management. Such as difference between creation of purchase order automatically in Purchasing and creation of purchase order automatically in Inventory Management. In SAP we can take this activity in both the sub components (Purchasing as well as in Inventory Management).
By this time, I hope that you have understood that there are different settings for each of these components and we have to configure two different set of information to meet each requirement separately. Hence let me define this activity as follows:
Create Purchase Order Automatically in Purchasing
For creation of purchase Order automatically from Purchase Requisitions we need to do the following additional settings in addition to our standard ones.
Activate u2018auto PO' indicator for material master
Activate u2018auto PO' indicator for vendor master
Create Purchase Requisitions using T Code ME51 or ME51N
Use T. Code ME59 or ME59N for auto conversion of PR into purchase order
Create Purchase Order Automatically in Inventory Management
For creation of purchase Order automatically in Inventory Management we need to do the following settings which are independent of the setting what we do in Purchasing for creation of automatic PO from PR.
Define one of the purchase organizations as Standard Purchase Organization
Assign your plant to Standard Purchase Organization
Maintain purchasing information record with price
Maintain the indicator for movement types 101 & 161
Define Default Values (MB01) for Document Type
Now you can enter a goods receipt without entering the purchase order number, a purchase order will be created automatically when you post the goods receipt. All such goods receipt will be valuated at the price maintained in the purchasing information record.
First you can try this with T. Code MB01 if it is working then try with T. Code MIGO, if you face any error or functionality is not working check with your basis consultant some authorization or some patches may be missing. Ask him to apply all relevant patches.
Try using automatic PO for 161 movement for transaction MB01. For MIGO Goods return, its not allowed to create automatic PO due to system settings. This info as I know.
Regards,
Syed Hussain.

Add a Price List based on last purchase price

Hi!
I'm working with SAP B1 2005 A SP01 PL39 and I'm trying to add a Price List via DIAPI using this code in VB.net.
Dim oPriceList As SAPbobsCOM.PriceLists
oPriceList = oCompany.GetBusinessObject(SAPbobsCOM.BoObjectTypes.oPriceLists)
oPriceList.PriceListName = "PriceList Z"
oPriceList.BasePriceList = 0 '// last purchase price
oPriceList.Factor = 1
oPriceList.GroupNum = BoPriceListGroupNum.boplgn_Group1
oPriceList.RoundingMethod = BoRoundingMethod.borm_NoRounding
oPriceList.Add()
The problem is when the Price List is added, the base price list changes and becomes "PriceList Z" instead of "last purchase price"!!
After i try to update the base price list from "PriceList Z" to "last purchase price" manually at Inventory > Price Lists > Price Lists and it works!
I even tested the code changing the base price list to "last evaluated price"...
oPriceList.BasePriceList = -1 '// last evaluated price
... and it works too! The Price List is added based on the last evaluated price.
I'm only having problems with last purchase price... why?

Thanks for the quick response Petr but my problem isn't solved yet...
As you can read in my first post, i've changed the code and based the new price list on the "Last Evaluated Price".
This "Last Evaluated Price" isn't in the OPLN table and the new price list (with last evaluated price based on) is added successfully.
The problem comes when i try to add a new price list based on the last purchase price.

How to achieve populating of price for regular purchases in PO

When using Purchasing module ( without/shared Inventory ) , i understand we can't create Item codes, my question is How to achieve populating of price for regular purchases.
Ex : If user requests Laptop for the same model more than one time in a year, i want the price to auto populate in PO and make buyer/requester life easy.

I don't think you can do this.
However, if you are creating a requisition, you may be able to use the "Catalog" button to refer to old purchase orders.

Why "All Material in SAP has to be flagged as Inventory Item"?

I am new in the SAP world. Would like to ask a basic question to experts,
Is there anything in SAP that "All Material in SAP has to be flagged as Inventory Item?
Can any body explain what is the problem with Flagging Direct Purchase Items as non inventory item?
Will appreciate.
Thanks
Maruf

Maruf,
Why "All Material in SAP has to be flagged as Inventory Item"?
They don't
Can any body explain what is the problem with Flagging Direct Purchase Items as non inventory item?
There is no problem.
Best Regards,
DB49

ESYU: "Open/Close Periods" 와 "Control Purchasing Periods"의 차이점

Purpose
Oracle Purchasing - Version: 11.5.10
FORM:POXSTCPP.FMB - Control Purchasing Periods GUI
FORM:GLPRDED.FMB - Open/Close Periods
"Open/Close Periods" 와 "Control Purchasing Periods"의 차이점이 무엇인지
알아본다.
Solution
1. Purchasing Periods 관리
(Purchasing-->Setup -->Financials --> Accounting-->Control Purchasing Periods)
Control Purchasing Periods는 Purchasing Period를 관리한다.
Purchasing periods는 Receiving Sub Ledger에 ledger 입력을 관리한다.
Purchase Orders와 Receipts(만일 PO를 Inventory로 넘겨줘야 한다면 transaction date는
Inventory Accounting Period 안에 있어야 한다) process를 위해서는 Purchasing period는
Open 되어져야 한다.
만일 예산 관리/Encumbrance Accounting을 사용한다면, Purchasing은 PO distribution과
Requisition distributions에 입력된 GL date가 open Purchasing period 안에 있는 날짜인지를
검토한다.
만일 집중화된 Procurement를 사용한다면, Purchase Orders와 Receipt process를 원하는
모든 Business units 안의 Purchasing Period는 Open 상태로 남아 있는지 확인해야 한다.
2. Open/Close Period
(Purchasing-->Setup-->Financials --> Accounting-->Open/Close Period).
이 화면은 GL periods를 관리한다.
GL periods는 GL에서 posting과 journal 입력을 관리한다.
Reference
Note 394361.1

Hi Vamsi,
Thanks for your response and our company metalink account has been expired, and Oracle no longer support us.
I want to confirm that, do you mean that I update the adjustment month on gl_period_status, then the system can generate the 'missing' inventory accounting period and purchasing period, and also other periods that should be existed?
Thanks for kindly help!
Joseph

Budgeting control, encumbrance & Inventory

When creating a Purchase order charged to Inventory, with budgetary controls and encumbrance the Inventory available budget will be decreased. We allocate a small inventory budget only for overhall incresae in Inventory levels. We will purchase much more than that budget amount but we will issue from store so that total increase will remain under budget amounts.
Is there a way for store issues to increase available budget left?

Hi Ajay,
We are uploading the budget in 7KEX per GL account per profit / cost center
Thanks.

Periodic Inventory System

Hi All,
I am new here so please can you explain Periodic Inventory in SAP Business one. I am using SAP Business One 8.8.
Thanks
Sameer

Hi Sameer,
Just copy below text and paste it in notepad.....
Perpetual vs. Periodic Inventory System Journal Entries
A. The Sale and Purchase of Products
Perpetual inventory systems show all changes in inventory in the "Inventory" account. Purchase accounts are not used in a perpetual inventory system.
Periodic inventory systems keep the inventory balance at the same value that it was at the beginning of the year. At year end, the inventory balance is adjusted to a physical count. To account for inventory purchases in a periodic inventory system, an account called "Purchases" is used rather than debiting "Inventory".
    Example: (Unit cost is held constant to avoid the necessity of a using
               a cost flow assumption)
                   Beginning inventory      100 units @ $6 = $ 600
                   Purchases                900 units @ $6 = $5,400
                   Sales                    600 units @ $12 = $7,200
                   Ending inventory         400 units @ $6 = $2,400
         Perpetual Inventory System       |    Periodic Inventory System
      1. Beginning inventory 100 units at $600
          Inventory account shows         | Inventory account shows
          $600 in inventory.              | $600 in inventory.
      2. Purchase of 900 units at $6 per unit
          Inventory            5,400      | Purchases           5,400
             Acc. Payable            5,400|     Acc. Payable           5,400
      3. Sale of 600 units at a selling price of $12 per unit
          Acc. Receivable      7,200      | Acc. Receivable     7,200
             Sales                   7,200|     Sales                  7,200
          Cost of Goods Sold   3,600
No entry
             Inventory               3,600
      4. End-of-period entry for inventory adjustment
          No entry needed.                | Inventory            1,800
          The ending balance of inventory |    Cost of Goods Sold 3,600
          shows $2,400.                   |    Purchases               5,400
      Note: The periodic inventory adjustment in transaction 4 adjusts
            inventory to the physical count, closes out any purchase accounts,
            and runs any difference through cost of goods sold.
B. Cost of Goods Sold in a Periodic Inventory System
Perpetual inventory systems record cost of goods sold and keep inventory at its current balance throughout the year. Therefore, there is no need to do a year-end inventory adjustment unless the perpetual records disagree with the inventory count. In addition, a separate cost of goods sold calculation is unnecessary since cost of goods sold is recorded whenever inventory is sold.
The inventory account in a periodic inventory system keeps its beginning balance until the end of period adjustment to the physical inventory count. Therefore, a separate cost of goods sold calculation is necessary. The following calculation shows the calculation for the preceding example.
                   Beginning Inventory                  600
                   Net Purchases                      5,400
                   Goods Available for Sale           6,000
                   Ending Inventory                   2,400
                   Cost of Goods Sold                 3,600
                                                     =======
C. Purchase Returns and Allowances and Purchase Discounts
"Purchases" has a normal debit balance since it replaces the debit to "Inventory". It has two contra accounts known as "Purchase Discounts" (Purch. Disc.) and "Purchase Returns and Allowances" (Purch. R&A) that reduce it to determine "Net Purchases". The balance of these two contra accounts is a credit because "Purchases" is a debit. Remember that contra accounts always have a normal balance that is opposite to what they are contra to. Purchase-type accounts are temporary accounts (i.e., they are closed at year end) and only appear in a periodic inventory system. They simply serve to replace the corresponding inventory portion of an entry that exists in a perpetual inventory system. The following entries illustrate purchase returns and discounts in perpetual and periodic inventory systems:
           Perpetual Inventory System    |    Periodic Inventory System
      1. Ace Company returned $600 of damaged merchandise and received a
          price reduction allowance of $100 on the portion of the merchandise
          they retained.
          Acc. Payable      700          |    Acc. Payable      700
             Inventory          700      |      Purch. R&A            700
      2. In a previous transaction, Ace purchased merchandise on account at
          a cost of $1,000. The credit terms were 2/10, n/30. Ace paid for
          the merchandise within the discount period.
          Acc. Payable    1,000          |    Acc. Payable    1,000
             Inventory              20   |       Purch. Disc.          20
             Cash                  980   |       Cash                 980
D. Sales Returns and Allowances and Sales Discounts
Sales has two contra accounts known as "Sales Discounts" (Sales Disc.) and "Sales Returns and Allowances" (Sales R&A) that reduce it. The normal balance for these two contra accounts is a debit. Sales and its contra accounts may appear with either a perpetual or periodic inventory system. The following entries illustrate the accounts in perpetual and periodic inventory systems. The entries assume the gross method.
           Perpetual Inventory System    |    Periodic Inventory System
      1. Sam Company received $600 of damaged merchandise from their customer
          Ace. They also gave Ace a $100 allowance for some of the damaged
          merchandise that Ace retained. The original cost of the merchandise
          returned to Sam was $400.
          Sales R&A             700      |    Sales R&A           700
             Acc. Receivable         700 |       Acc. Receivable       700
          Inventory             400
No entry
             Cost of Goods Sold      400
      2. Sam received a customer payment for a prior sale on account of $1,000
         subject to credit terms of 2/10, n/30. The customer made payment
         within the discount period.
          Cash                  980      |    Cash                980
          Sales Disc.            20      |    Sales Disc.          20
             Acc. Receivable        1,000|       Acc. Receivable      1,000
Sales on the income statement should be shown net of its contra accounts. For example, if a company has $980,000 in sales, $3,400 in sales returns and allowances, and $2,200 in sales discounts; net sales would be $974,400.
Thanks
Sachin
Edited by: SachinD on Sep 28, 2010 11:54 AM

Can any one send purchase order flow with detail

hi i have one doubt during purchase order can any one send flow of purchase order

Ravi,
What Is The DataFlow Of MM?
The dataflow as functional process below are the points:
1) Purchasing Requsition -> sent by inventory dept to purcharsing dept
2) Request for Quotation(RFQ)-> Purchasing Dept shall ask the vendors to give the quotation for the requested materials by inventory.
3) Quotation -> Quotation is sent by vendors to the company
4) Purchase order-> Based on all paramers of a quotation sent by vendors. Vendors are selected from whom the material has to be obtained. The company gives purchase order to the vendor.
5) Good's receipt -> vendors sends the goods to the company with goods receipt
6) Invoice verification -> this done based on good's receipt. this means that the ordered goods have reached or not.
7) Payment -> payment is done based on invoice verification. this is (FI/CO)   *-- Santosh Kumaar.M
Full MM Transaction Codes Flow:
RFQ to Vendor - ME41
Raising Quotation - ME47
Comparison of Price - ME49
Creation of PO - ME21N
Goods Receipt - MIGO
Invoice (Bill PAssing) - MIRO
Goods Issue - MB1A
Physical Inventory - MI01( Create doc)
MI04 (Enter Count)
MI07 (Post)
The FI - MM integration:
First you define the g/l master records.
1) Inventry raw material a/c
2) GR/IR clearing a/c
3) Raw material consumption a/c
Above like this you define all required g/l accounts then you will go to T.CODE - OBYC
Double click BSX (this is transaction key)
      "            GBB
      "            WRX
      "            PRD
These are transaction keys important.
Then you go to T CODE - OMSY (this is also important) then
Material creation T Code MM01
then
1) Purchase order T.code ME21N
2) Goods received     "       MIGO
3) Invoice verification "      MIRO
The FI - MM integration finished
PO Flow
http://sap-img.com/materials/what-is-the-dataflow-of-mm.htm
http://sap-img.com/materials/what-is-the-dataflow-of-mm.htm
Don't forget to reward if useful...

Purchase a/c vs inventory a/c

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