Sales & Purchase Credit Account Determination

Good Morning All,
Please advise, what accounts (Expense or Income Account) should be determined for Sales Credit Account and Purchase Credit Account under Item Group & Warehouse Setup window.
Please explain me the functionalities behind this two accounts. For what transactions these account will be helpful?
Thanks in advance.
Regards,
Balaji

Sales Credit Account
Used when posting a Credit on Sales side for non stock/stock items.
Purchase Credit Account
Used when posting a Credit on the Purchase side for non stock items.
Check this link which explains the variuos stock accounts in B1.
PDF File:
[https://websmp101.sap-ag.de/~sapidb/011000358700006406532006E/CW46_LOG_StockAccounts.pdf]
Webex Recorded Session
[https://websmp101.sap-ag.de/~sapidb/011000358700006406542006E/CW46_LOG_StockAccouts.wrf]

Similar Messages

Purchase Credit Account Issue

Dear All,
I am using Perpetual inventory system. I want to know for what reason and in which situation Purchase Credit Account is used.
Regards
Hitesh Parsawala

Hi Hitesh
Sales credit account" is used as offset to "revenue account" when you post A/R Credit memo and Purchase credit account is used as offset to Vendor account when you post A/P credit memo. If no invoices has been generated , then system wouldn't ask for this acount while posting credit notes.
Check this link which explains the variuos stock accounts in B1.
PDF File:
https://websmp101.sap-ag.de/~sapidb/011000358700006406532006E/CW46_LOG_StockAccounts.pdf
Webex Recorded Session
https://websmp101.sap-ag.de/~sapidb/011000358700006406542006E/CW46_LOG_StockAccouts.wrf
Hope this solve your problem
Ashish Gupte

Purchase Credit account - when it will use?

Hi All,
Just being confused with Purchase Credit Account, when this account will be used? It is at Goods Return function? or AP Credit Note?
What account should be set for? COGS? Looking forward for correct answer, thanks.
Regards,
MH

Hi,
Purchase Credit Account is an expense account to be used as default when a credit transaction for purchasing is created, for example, an A/P credit memo.
This account defaults for new warehouses, item groups and item master data records creation.
The purchase credit account can be the same as the Expense Account, in case you do not wish to record credits to a separate account.
It is mandatory account for Initial Setup.
Regards,
Preety Goel
SAP Business One Forums Team

Issue within Purchase Credit Account & Price Difference Account

Dear All,
I just wanted to know when this Purchase Credit Account and Price Difference Accounts within the Accounting Tab in Item Group or Within the Accounting Tab within Warehouse are Posted within the Transaction.
Kindly someone explain me with a proper example.
Regards
HP

Hello,
Price Difference Account :-
When we are using with Standard(Valuation Method) in Inventory Data Tab.
Suppose we have put cost 100 rupee for RM001 (Raw Materials) but if we make document for 120 then it will affect with difference amount it may be increase or dcrease.
Purchase Credit Account :-
when a credit transaction for purchasing is created, for example, an A/P credit memo
Suppose if we have made Purchase Invoice (A/P invoice ) and after we make Credit note then this account will be affect
Thanks
Manvendra SIngh Niranjan

Sales order - KOFK account determination - incompletion procedure

Hi Gurus,
i am a little bit confused and need help!
When I am creating a sales order (free of charge) and assign a WBS Element i get the message in the imcompletion routine that the account for type KOFK is missing.
I know where to maintain this but I am confused, because if i don't assign a WBS Element there is no account determination!!
Why is there an account determination when i use WBS Elements and no account determination when using no WBS Elements. This is in the sales order only.
I also want to deactivate the account determination for WBS Elements in Sales Order.
Can someone help me?
Thanks in advance

Hi Yoganand,
sorry for writting so late - i was in vacation the last 2 weeks
I had a lot of discussion about this with an FI/CO Consultant - first he also didn't know, but after some more discussion he could remember from a former project that this is standard when there is a planing relevanz for the wbs-element.
An WBS-Element can not only cause costs (through orders, etc.) which are planned, it can also cause proceeds (through sales orders) which also have to be planned.
And thats why the account determination for KOFK is active in the sales order when typing in a WBS element. So the whole accounting procedure is due to the planning of costs/proceeds within the element. For reporting purposes you need both costs and proceeds.
Georg

UNBW Material in a third-party Sales Order (error: account determination)

Hy @ll,
we receive the following error message when entering a non valuated material (MTART UNBW) in a third-party sales order item.
System is asking for the calculated budget and after the manual entry of the budget the following error message appears.
(the schedule line customizing populates the account assignment category X for the PR)
"Not possible to determine a consumption account".
any ideas? my assumption is that account determination OBYC can not be error source, because it´s a non-valuated material...
many thanks,.
Gregor

Please read OSS Note 95429 - MB01 for material type UNBW, third-party order
and
Note 83916 - Not possible to determine a consumption account

Sales Order Credit Account and Credit control area not updated

Hi,
I have a production issue. I have two sales orders created from Same Value contract, with same PO, same sold to party same payer. Both the orders created by same user at the same time.
First SO has credit control area and credit account is updated but the second order did not update with this information.
For first order, if I go to Environment -> Partner -> Display credit account, system taking to FD33 screen of the credit account.
For the second order, above menu path giving message "Cannot display credit limit as no credit management account is available"
Please let me know how fix the second order to rectify this issue.
Thanks,
Satish

Hi,
Goto OVAK T.Code.
Assign credit check to your second sales order type.
Assign the values from "A" to "D".Any value as per your need.
Save.
Regards,
Krishna.

Credit Account determination in SO

Hi,
We have a scenario where SO is created for SP: 2345 for whom partners are SH: 1234, BP: 1234, PY: 1234.
Now when I goto the SO in VA02>Environment->Partner--->Display Credit Account there it is showing an account 5678.
I just wanted to know how the system is determining a credit account in the SO.
Thanks in Advance
Regards,
Raj

Check which payer has been added in XD02 - under the partner functions. Generally the credit account comes from the payer. If there is more than one payer the user will encounter a popup in VA01 and a selection is made.
I hope this helps.
Gerard

Purchase Credit account not working

Hi All,
When I am creating AP credit note, inventory a/c is credited instead of purchase credit a/c .
why this happening, and whats use of purchase a/c remains.
Thanks
Prak

Hi,
In DEMO, check the working with a non-inventory item.
Enter a AP Credit Memo and check the JE for that by selecting an item which is Non Inventory.
Hope it would be clarified.
Kind Regards,
Jitin
SAP Business One Forum Team

Purchase Credit memo - G/L Account is missing

I purchased some items (not the service) from a vendor, but i like to return it so I wants to create a A/P Credit Memo. I am copying all the information into the A/P Credit memo from Goods Receipt document. When I click add button the system throws an error saying the G/L account is missing. What could be the problem.
Thanks
SV Reddy
Edited by: S V Reddy on Apr 3, 2008 11:55 AM

Hi Rakesh, thanks for the reply
This A/P down payment clearing account is already defined. Also I tried to enter the G/L account for Purchase Credit account , still the problem is exist.
if I am raising a A/P credit memo for an item type is Purchased item and Fixed Asset , in this case would be the scenario be different? I am copying all the information into the credit memo from is A/P Invoice. Please reply
thanks
SV Reddy

Sales Return Account Determination

Hi,
I have a query on revenue account determination for Sales returns.
Is there a seperate process for the sales return revenue account determination (other than VKOA).
I want to have a seperate revenue account for Sales return. How can this be acheived.
Please advise.
Thanks in Advance,
Safi

How you want revenue account deteminaton ?
Seperate revenue account means what?
you want to maintain separate G/L account for sales returns?
if yes, then maintain the different pricing procedure with diff Acct keys, maintian the account determination will solve.
plz clarify

G\L Account determination per itemgroup

Hello,
I do have a question about the G\L Account determination in SAP B1. It is my task to find out which G\L Account(s) is/are being used by the program for all different kind of (trans)actions.
I checked out help.sap.com to check out the different GL accounts that can be determined but this wasn't very useful. There is only a description for GL account determination at company level (Administration > Setup > Financial > G\L account determination).
But after a hard (and long) time of searching I found out most of them myself. But I still need to know 6 of them. I can't find out where they are used and the description @ help is not good as well.
It is about these G\L accounts:
Sales credit account
Purchase credit account
Sales credit account foreign
Purchase credit account foreign
Sales credit account EU
Purchase credit account EU
I need to know when these accounts are being used in journal entries.
Thanks in advance,
Kind regards,
Hendri

Do you have access to the SAP Business One Document Resource Center? If you do, there is a 19 page PDF there that you should have. It is called 'How to Determine G/L Accounts for Automatic Creation of Journal Entries'.
You have to dig for it. There is no 2007 release, but the 2005 document is still good. In the Document Resource Center, look under
SAP Business One 2005 A SP01
then
How-To Guides 2005 A & 2005 A SP01
then
How to Determine G/L Accounts 2005 SP01 - US
This link may or may not work to get you to the How To Guide page where you will find the PDF:
https://websmp110.sap-ag.de/~form/sapnet?_FRAME=OBJECT&_HIER_KEY=701100035871000437965&_SCENARIO=01100035870000000183&

G/L Account Determination Document for SBO 2007

I would like to find a document (word, excel or pdf) that explains the G/L Account Determination and its accounts. In which documents inside SBO are those account used? I see more accounts used in SBO 2007 and use trial and error to see these but preferred a document. I have seen the empowerment session about account determination but do not explain each of the accounts. Any help ?

Sorry for attaching wrong thread .
Please refer to the following information
g/l Account Determination ---> purchase ---> Expense Account
Define an expense account to be used as the default when a transaction of domestic purchasing is posted, for example, an A/P invoice. The system also selects this account as a default when you create new warehouses, item groups, and item master data records.
The expense account is applicable only when you use non-inventory items.
g/l Account Determination ---> purchase ---> Purchase Credit Account
Define an expense account to be used as default when a credit transaction for purchasing is created, for example, an A/P credit memo.
This account defaults for new warehouses, item groups and item master data records creation.
The purchase credit account can be the same as the Expense Account, in case you do not wish to record credits to a separate account.
Setup g/l Account Determination ---> inventory ---> Expense Clearing Account
Define an offsetting G/L account to clear journal entries created by A/P invoices and goods receipt POs. This G/L account is used in journal entries when the Allocation account is also involved.
Setup g/l Account Determination ---> inventory ---> Goods clearing Account
When you close goods receipt POs or goods returns, this account is used as an offsetting account to the Allocation account. In this case, the system does not register an inventory transaction; however, it creates a journal entry involving this G/L account.
Clearing account: An account to which postings are recorded temporarily because of a time gap between accounting transactions, organizational task distribution, or accounting transactions requiring clarifications.
No matter what kinds of clearing accounts, they will be temparary accounts per se.
Link for Archive Sessions:
http://service.sap.com/~sapidb/011000358700000131752007E/ExpertSessions.htm
And more information ,you can take a look at help file by hitting F1key
Hope this helps.
Bishal

General Account Determination

1.Whre do we account purchase offset account. whether it is a Expense A/c or Incomes Account
2. What account we can assign for Sales Credit Account And Purchase Credit Account . ?
3. How we can differentiate Expense and Incomes of a busines for each department wise by using dimension?
Please Help me to clear this doubts.
Thanks

Pradeep,
1.Whre do we account purchase offset account. whether it is a Expense A/c or Incomes Account
 By Purchase Offset account are you referring to the Allocation Account? (Allocation account is used when you receive Goods through Goods Receipt PO and you owe money to the vendor for this).
If so then you need to select an account for the Liability drawer as it is a current liability.

2. What account we can assign for Sales Credit Account And Purchase Credit Account . ?

The Sales Credit Account is affected when you create a Credit Memo and similarly the Purchase Credit Account when you create a AP Credit Memo. The G/L Account for the Sales Credit Account typically is the Sales Revenue Account since it is reversal of Sales Revenue and likewise on the purchase side

3. How we can differentiate Expense and Incomes of a busines for each department wise by using dimension?

I believe by "dimension" you are referring to GL segmentation. If so, you are correct the department wise categorization of Exps and Inc can be done through GL Segmenetation.
Example:
Travel Expense (Sales) 620000-10
Travel Expense (Management) 620000-20
As you see above, 10 and 20 are segments pertaining to each department

How will i configure revenue account determination

how will i configure revenue account determination....

IMG MENUu2014Sales & Distributionu2014Basic Functions-Account assignment/ Costing-Revenue account determination
Check master data relevant for account assignment
Materials: account assignment groups
New entries
Account assignment group          Description
K1                                   Finished Products
K2                                   Service
K3                                   Trading products
Save
Customers: account assignment groups
New entries
Account assignment group     Description
KA                                   Domestic
KB                                   Export
KC                                   Internal
Save
We use condition technique to set up Account determination
Standard Condition Type     KOFI
Access sequence               KOFI
Account determination Procedure      KOFi00
Standard Tables
001          Customer/material account assign
002          Customer account assignment
003          Material account assignment
004          general
005          Account key
Use the above tables for search that is access sequence
Select define access sequence and account determination type
Maintain access sequences for account determination
Select new entries
Acc seq               Description
ZK00               Access seq for account det
Continue
Select ZK00 and select accesses
New entries
Acc          table          Description
10          1               cust/mat/account key
20          5               account key
Select 10 & 1 Combination. Select fields and activate the fields
Select 20 & 5 combination and select fields and activate fields
Save the access sequence
Fields in tables
Table          Fields
1     Sales Org, Cust account assignment grp.mat account assignment grp, account key
5     Sales org, account key
Same menu path
Define account determination type (Condition type)
New entries
Ctyp          Name               Access sequence
ZK00          Accnt det type     Zk00
Save
Define and assignment account determination Procedures
Define account determination Procedure
New entries
Proce               Description
ZK0000          Account det Procedure
Continue
Select Zk0000 and select control data
New entries
Step     Cntr     Condition Type
10          0          ZK00
Save
Assignment account determination Procedure
(Assign the procedure to all the Billing document types)
Position ZKF2
ZKF2                    ZK0000
Save
Define and assign account keys
Define account Key
Account key          Description
ERL                    Sales Revenues
ERS                    Sales deductions
ERF                    Freight revenue
MWS                    Taxes on sls/purchase
ERB                    Rebate sales deductions
ERU                    Rebate accruals
EVV                    Cash clearing
Account keys are assigned in the pricing procedure against various condition types
PR00                    ERL
K004                    ERS
K005                    ERS
KF00                    ERF
MWST                    MWS
B001 to B005          ERB               ERU
B001 to B005 are Rebate discount condition types
Assign GL accounts
(Here we maintain information in tables, which will be searched by system for selecting GL accounts)
Select table 1
Select details button
App= application, select V for sales
Condition type= Account determination type (ZK00)
Ch= Chart of accounts= INT
(Chart of account is assigned to company code and has the complete list of GL accounts used for business)
SORG= sales org which is involved in revenue generation/ sales unit
Au2026= Customer account assignment Group
AAG. = Material account assignment group
Actky= Account key like ERL etc
GL account No=the GL accountu2013NO maintained in Chart of accounts
Select new entries and maintain the following
Select Table number 5 to maintain GL accounts for tax, Rebates and cash clearing
MWSu2014175000
ERBu2014884000
ERU     884010          89000
EVV     10000
Create Order; Delivery, PGI and then billing document, when the Billing document is saved account determination should happen
hope this will help u
Regards
nitin

Sales & Purchase Credit Account Determination

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