Purchase Returns Freight Recovering accounting entries

HI,
We have Scenario where
1. We are returning the material to vendor with the help of Purchase returns PO, with 161 mvt type.
2. we need the accounting entries as follows.
PO:
Base Price: 100
Freight: 10
Insurance: 10
Tax:2
Gr:
Stk A/C 122....Cr
Gr/IR a/c 112...Dr
Freight A/c 10.. Dr
IR/Credit Memo:
Vendor 122... Cr
Gr/IR 112...Dr
Freight A/c 10...Dr
Here we are recovering the Freight and insurance Amounts incurred when Purchasing happened.
Thanks in advance
Ravi Kumar

Hi Ravikumar,
Would be helpful, if you can throw some light on the solution.
We are kinda stuck in a similar situation, below is our requirement
returns PO
GR
Cr         INV
Dr         GRIR
Dr         Freight clrg
Cr         Freight
Credit Memo/ERS settlement/ MRRL
Dr Vendor
Cr GRIR
Cr Freight Clrg
We were able to create the GR side of the entry, using two other condition types on the PO.
Now when we do ERS settlement,
the system creates a credit memo for the INV line item and an invoice for the freight line item.
Both the freight and the material is charged to the PO vendor, we dont charge separate to the freight vendor at this point.
Would be helpful.
Thanks

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Input ECS a/c   DR
Input H.css A/c   DR
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Dear Mathews,
It is not capital goods. Also if I do a JV in J1IH, the entry goes and is as below :
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But J1IS does not save, though I have assigned all said accounts in 'Excise accts per excise transation'   for OTHR. Also I read in wiki that the entry for purchase return excise inv in J1IS is ' CENV CLRG ....DR ,   CENV RECEIVABLE ...CR ' .If so, then do i creat new GL for Cenv Receivable ? What is its effect on FORTNIGHTLY UTILIZATION
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Edited by: Kamala Surianarayanan on Mar 6, 2009 6:38 AM
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During goods returns same accounting entry as when good issue

Hi,
In our project we have a condition that charge on a provision account during goods receipt of a purchase document. Hers the accounting entries generated is ok. However we also create purchase order with return item. During goods issue (mvt 161) the accounting entries created is same as the goods receipt instead of being the inverse.
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hi,
Check the details and TE key which is hit while 161..
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Dear All,
Wrong accounting entry is happening for Freight value for a standard PO.
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Prashant Atri

PO was created with 3 line items with each line item having freight condition type FRB2 - Freight value
For first line item it is Rs.200 for 1,008 quantity
For Second line item it is Rs.300 for 7,200 quantity
For Third line item it is Rs.300 for 2,604 quantity
GR was done for 3rd line item for the entire PO quantity 2604, but the frieght value is flowing only Rs. 156.24
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It is Valuated at MAP
2)Condition type- FRB2- Rs 300 is entered at the Header Level and it is marked as a Group condition because of which it got apportioned to all the line items in the Purchase Order.
It is entered line itemwise with Rs.300 to the third particular line item and there is wrong flow of freight value for other line items too in GR.
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Accounting Entries for Materials Return from Production Order

Dear Gurus,
I have a scenario here that a raw material, valuated at moving average = 151 and qty = 100, was issued to a production order last month. Due to some issue the order was not completed for a while and 93 qty was consumed for the order and because the remaining 7 were excess they were returned to the storage location. By that time the MOV had changed from 151 to 185 and the 7 qty was returned not at 151 (which would be correct) but at 185. This is a wrong accounting entry as it is showing an under consumption for the order.
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The normal entires are as follows (depending on your configuration);
1) Goods issue;
Credit inventory and debit COGS;
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3) Payment;
Credit customer account and debit cash/ checking account
pls assign points if helpful as a way to say thanks.

Accounting entries not generating during return deliver PGR

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<b><REMOVED BY MODERATOR></b>

Hi Das,
Accounting documents are created when billing documents are generated. Accounting documents are never ever generated when a returns delivery document is created.
If u have created billing document for normal sales process and if, an accounting document is generated, One more accounting document is going to be generated when u Cancel the billing document.
In ur case....If U have created a returns delivery document, create credit memo w.r.t returns delivery document. Then an accounting document is generated if ur account determination is configured in ur system.
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Praveen.

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What are the accounting Entries system will generate for Encumbrance at the time of Requisition & Purchase Order in Oracle Purchasing
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Refer:
http://www.oracleappshub.com/oracle-purchasing/accounting-fundamentals-for-techies-encumbrance-part-ii/
http://oracle.ittoolbox.com/groups/technical-functional/oracle-apps-l/what-all-are-encumbrance-accounting-entries-for-p2p-transaction-1098879
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I have created a Purchase order with account assignment as Project and attached a WBS element in the Account assignment tab. There is no GR involved in this PO.
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Vendor G/L account Credited
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RitiG

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I hope so ,there might be a problem at the PO creation Level.
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Vendor
GL -- COnsumption..WHich is maintained in PO
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Individual purchase order - Accounting entry with account assignment M

I want to use the individual purchase order with account assignment M .
Can someone please tell me what would be the correct accounting entry during GR and during delivery?
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Order -> pruchase req -> purchase order -> Goods receipt - > Delivery-> Billing
During order creation system asks for a consumption account against GBB-VKA
On GR the below entry is posted .
Dr GBB-VKA consumption
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Hi Hitesh
I am now wondering if this is possible
When PO has acct assignment to CC or IO, GR hits consumption
With Wbse, it can hit to stock account. Am wondering whether it will hit stock account if the PO has acct assignment to sales order...
I have seen sap notes for this scenario and my memory says I have seen the GR hitting consumption in those notes. There was an issue in scn where price diff upon invoice in such a scenario was not hitting vprs. For that there was sap note.
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Stock A/C debit 110
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Hi,
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then the requestor has to approve that PO and send that back to the Provider..
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GR/IR Freight Clearing Account - GR & Invoice Verification

Dear Gurus,
I have made a PO for 1200 pcs unit price 69.20$. (GR based IV).   (Valuation - Moving average price)
Delivery costs - Freight (FRB1) - 1200$
I have splitted the PO quantity in to 3 different Inbound deliveries
Inbound 1 - 400 pcs
Inbound 2 - 400 pcs
Inbound 3 - 400 pcs
I have made the Goods receipt for the 1st Inbound - 400 pcs.
Goods Receipt 1 - 400 pcs. The value in the GR/IR freight clearing a/c credited by 400$
Invoice Verification1 - 400 pcs. The value in the Invoice verification is 1000$.
The value in the GR/IR freight clearing a/c debited by 1000$
Goods Receipt2 - 400 pcs. The value in the GR/IR freight clearing a/c got credited by 400$
Invoice Verification2 - 400 pcs. The value in the Invoice Verification is 2000$
The value in the GR/IR freight clearing a/c got debited by 200$ and Stock in Hand debited by 1800$
Goods Receipt3 - 400 pcs. The value in the GR/IR freight clearing a/c got credited by 200$
Invoice Verification3 - 400 pcs. The value in the Invoice Verification is 1500$
The value in the GR/IR freight clearing a/c got debited by 133.33$ and Stock in Hand debited by 1366.67$
I don't understand how the logic works for seggreating the amount to GR/IR freight clearing account and GR/IR account.
For the first 2 GR and IV I could understand that there is a balance in the PO condition but for the Invoice verification 3. The value debited to GR/IR freight account is 133.33$. Can anyone help me how the calculation is taking place and how the system has arrived to figure 133.33$ in the Invoice verification for GR/IR freight clearing a/c
Strangely when I have cancelled the Invoice Verification document 3.
The value Credited to GR/IR freight clearing account is 333.33$ instead of 133.33$
Can somebody help me to figure out the calucation for IR after the GR for planned delivery costs.
If any SAP notes or help files can be provided then it would be really helpful.
Regards
Fazal.

Refer this note 311496 & 460244, 129066
Symptom
Delivery costs were planned for a purchase order item.
A goods-receipt-based invoice verification is set.
Several goods receipts are posted. For invoice entry, both in conventional invoice verification (transaction MR01/MRHR) and in logistics invoice verification (transaction MR1M/MIRO), the delivery costs for each purchase order item are displayed in total.
This is the same as when, for example, only one of several GR documents/delivery notes is selected.
Example of a purchase order history:
Cat. Doc. no.    Itm    MvT Pstg.dt.            Qty.in BUoM       Value in local curr
GR   5200002605 0001 101 June 16, 2000      5 PC         50,00 DEM
GR   5200002606 0001 101 June 16, 2000      5 PC         50,00 DEM
Sum of goods receipts                      10 PC        100,00 DEM
DCGR 5200002605 0001     June 16, 2000       5 PC           3,33 DEM
DCGR 5200002605 0001     June 16, 2000       5 PC           5.00 DEM
DCGR 5200002606 0001     June 16, 2000       5 PC           3,33 DEM
DCGR 5200002606 0001     June 16, 2000       5 PC           5.00 DEM
Total delivery cost GR                                                 16,66 DEM
If you only select the first GR document in the selection, you get
the following default values for the delivery costs:
Amount    Quantity BUoM Itm Decription              Vendor
6,67         10      PC 10    Freight value        VEND01
10,00        10      PC 10    Freight/quantity     VEND01
(and not, as sometimes expected: - 3,33 DEM    5 PC
                                    - 5,00 DEM    5 PC)
Other terms
WEBRE, delivery costs, planned delivery costs, goods-receipt-based invoice verification, invoice verification
Reason and Prerequisites
A function such as the goods-receipt-based invoice verification is not available for delivery costs.
Solution
This is not an error; this is a consulting note.

Accounting Entry

Dear All
what are the accounting entries for the follwoing scenario.
If I return the goods to the vendor through mvt 161 i.e using returnable Purchase order.And when Vendor send me credit note for the goods I returned , at this time if the amount of credit note is different from the amount from movement 161.
In short I would like to know What is the entry when the credit from the vendor differs from the amount from the movement 161.
Regards
Manoj

Hi Manoj,
You should have credit on the GR/IR account, a debit one the Vendor account and depending if the credit note amount is greater or smaller than the returned items amount, then the adjustment should be tied to a (debit or credit) price difference account.
Hope this helps.
GG

How to create Purchase Return

Hi
I want to know how to create Purchase return so that the Purchase return account has an effect.
We have created a AP Credit Memo...but it is not affecting the Purchase return account
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Farheen

Hi Farheen,
If we are not using Purchase Posting sestem
Control Account(Vendor Account)        Debit
Inventory Account + VAT Payable (output Tax) + Freight    Credit
If we are using Purchase Posting sestem
Vendor Account + Cost of Goods Purchase Account       Debit
Purchase Account +Tax Account +Purchase Return Account     Credit
Thanks,
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Purchase Returns Freight Recovering accounting entries

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