Sample Sale accounting entry

Hi experts,
what should be the accounting entries when we are doing a sample sales (providing free of cost sample goods to customer as a sales promotion activity)?

Dear TS,
In Sample sales accounting entries will takes place as like normal postings but there will not be any out standinding on behalf of cutomer because this comes under 100% discount.
You need to use R100 - 100% discount condition type in your pricing procedure to give the samples at free of cost.
So all product price value will be posted to deduction(Discount) account there will not be any revenue i.e postings will not happen to Revenue account.
If tax is applicable that posted as normal posting.
I hope this will help you,
Regards,
Murali.

Similar Messages

Process flow of excise duty from procurement to sales accounting entry with amount.

Dear Expert ,
Kindly any one help the process flow of excise duty calculation from procurement to sales accounting entry with amount. for example.- if material amount is Rs. 10,0000 and excise duty is 8% , edu ecss 2 % , and sec ecss 1%. I want know the accounting entry on- MIGO, J1IEX, MIRO, F-43 AND , PGI, BILLING DOCUMENT, J1IJ , TR6 CHALLAN, J2IUN.
Regards
Akshaya

Hi,
In case of
A. Procurement : there are two types of procurement viz. Local and Import
LOCAL
1. MIGO
Inventory A/c Dr
To GR?IR
2. J1IEX
CENVAT Receivable (Basic) A/c - Dr
CENVATReceivable (Ecess) A/c - Dr
CENVAT Receivable (S & H) A/c - Dr
To CENVAT Clearing
3. MIRO
CENVAT Clearing A/c - Dr
To Vendor A/chrough
4. F-43
No excise entry through SAP direct posting but through manual posting in case using TAXINN procedure.
5. TR6 Challan
PLA Payment (Basic) A/c - Dr
PLA Payment (Ecess) A/c - Dr
PLA Payment (S & H) A/c - Dr
To PLA on Hold A/c
IMPORT
1. MIRO
ECS+SECS on Cus+CVD A/c Dr (consists of ECS on custm+cvd and S & H on custm+cvd)
CVD Clearing A/c Dr (consists of Additional Duty CVD and CVD)
Customs Clearing A/c Dr (consists of Basic Customs)
To Customs Vendor
2. MIGO
Inventory A/c - Dr
To GR/IR A/c
To Customs Clearing (consists of Basic Customs)
To ECS+SECS on Cus+CVD (consists of ECS on custm+cvd and S & H on custm+cvd)
3. J1IEX
CENVAT Receivable (Basic) A/c - Dr
CENVATReceivable (Ecess) A/c - Dr
CENVAT Receivable (S & H) A/c - Dr
To CVD Clearing
4. F-43
No excise entry through SAP direct posting but through manual posting in case using TAXINN procedure.
5. TR6 Challan
PLA Payment (Basic) A/c - Dr
PLA Payment (Ecess) A/c - Dr
PLA Payment (S & H) A/c - Dr
To PLA on Hold A/c
Sales
1. PGI
COGS A/c Dr
To Inventory
2. Billing Document
Excise
ED Suspense A/c Dr
To Liability for BED
To Liability for ECS
To Liability for S & H
Customer
Customer A/c Dr
To ED Suspense A/c
To Revenue
To VAT / CST
Hope your doubts are clear.
Regards,
Tejas

Accounting entry Inter company issue of goods as Sample

Dear SAP expert
We have a process to issue Finshed goods to vendor for testing purpose.
For this, I am issuing a finished goods for testing purpose to vendor (another company code in same group) .
At that stage accounting entry for goods issue is
Cost of sales Debit
To : Finished goods inventory credit.
We have created a PO of cross company code type and created a outward delivery for cross company code replenishment.
IF we change and add VQP general modifier in GBB transaction type then all material issue of such material will be accounted as testing expenses . However there may be some material transactions which are not sample but sale of finished goods , i have explore all options in OBYC but not sure what to do .
Company is not using valuation type functionality.
*Please suggest a way out to book expenses as Testing expenses whenever finished goods are issued as sample.*
Regards
Mehta S

Hi all
Is there any risk in doing the account determination through User exit in such a scenario. I have found a user exit EXIT_SAPMM07M_001 and include z_mm_exit_zxmbcm02_05 as useful instead of mapping the whole process for this transaction.
This user exit is working fine. Any risk people feel in bypassing OBYC through User exit.
Regards
MEHTA

Accounting Entries hit in Third party Sales Process

Hi,
Can anybody tell which accounting entries are hit when we create the following entries in third party sales process
1.When Sales Order is created.
2.When PR is Created
3.When ME21N is done
4.MIGO
5.MIRO
please provide your valuable suggestion..
Thanks...

Hi,
1. When Sales Order is created.
No FI Entry
2. When PR is Created
No FI Entry
3. When ME21N is done
No FI Entry
4. MIGO
(GBB-VAY) COGS - 3rd Party A/c - Dr
(WRX) GR/IR Clearing A/c - Cr
5. MIRO
Vendor Account - Cr
GR/IR Clearing A/c - Dr
6. VF01
Customer Account - Dr
Sales Revenue A/c - Cr

Accounting entry against Excise invoice not created for Service Tax sales

Dear all,
I am facing one problem related to accounting entry against excise invoice not created, for service tax sales scenario in SEZ plant.
Accounting entry against billing document is generated,which contains revenue account-Debit entry,service tax 10% --Debit entry,ECS-Service tax 2% --Debit entry, SECess Service Tax 1% --Debit entry & Sundry Debtors (Reco) - Domestic(Customer receivable reconciallation) account-Credit entry.
But after generating excise invoice, accouning entries not generated for clearing of Cenvat suspense entry(i.e.service tax 10% ,ECS-Service tax 2% , SECess Service Tax 1%) which is generated during billing document.
Plz. suggest step by step guideline to resolve this issue.
Thanks & Regards,
Mukesh Pardeshi

Hi ReazuddinMD,
thanks for your reply and support...I checked all the entries/accounts maintained correct.. but the Accounting entrys against Excise invoice not created..
Now i am geeting error as below at the time of saving Excise invoice,
No account is specified in item 0000000001
Message no. F5670
Diagnosis
No account was specified for account type "S" in item "0000000001" of the FI/CO document.
System Response
The Financial Accounting program cannot process the document.
Procedure
A system error has probably occurred in the application you called up. Check the data transferred to item "0000000001" of the FI/CO document.

Want Accounting Entries for Sales Cycle and Procurement Process in SAP

Hello Gurus,
Can some one kindly send me the accounting entries happens during Sales Cycle and Procurement Process in SAP.I will be very helpful if i get this by Friday ( tomarrow).Its a request.
Thanks,
B
Moderator: Read and respect the rules of the forum

You can visit the following link.
http://www.sap-img.com/financial/inventory-accounting-entries.htm
Also, before posting here, you should do a search in here or in Google. You would get most of your answers by searching in Google or any search engine.
One more thing. Timelines are not permitted in these forums.
Cheers,
Ravi.

Free sample sales net value in invoice should give zero value.

Hello Experts,
I have a question on the cess values aspect of free sample sales.Recently, I have configured a free sample sales for one of our clients. Now, in the invoice the user does not want the cess values to be passed to the customer.I changed the R100 discount type in the pricing control data, still tax is picked up, showing negative net value and not zero. Now, how to arrive at excise payable as credit entry and octoroi etc as debit entry in G/L accounts. or where I am going wrong, please suggest.
Regards,
Raj.

For sample sales that is you are despatching material on free of cost, follow the steps mentioned below
1) In V/06, you should create a condition type, say ZDIS (for 100% discount) and maintain the following:-
Cond. class::::::A
Calculat.type::::A
Plus/minus:::::::X
Item condition:::X
Amount/percent:::X
Delete:::::::::::X
Value::::::::::::X
Save the condition type
2) In OV34, create two new Account Keys, one for PR00 and one for 100% discount. Say the two Account Keys are ZSM and ZSP
3) In V/08, against PR00 condition type, assign Account Key ZSM with a tick in "Required". Next for condition type ZDIS, assign the another Account Key ZSP without any tick in the three boxes. Against this discount condition type, assign the step number of net value under the tab "From", assuming that after PR00 you have multiple condition types.
4) In FS00, create a new G/L Account with description as Sales Promotion Expenses
5) In VKOA maintain these two Account Keys for the sales organisation / chart of accounts with the same G/L account for both the Account Keys. Dont assign different G/L Account here.
6) Now create a sale order and do billing. See how the accounting document flows. Post still if you have any issues.
thanks
G. Lakshmipathi

Sample Sales - Document Splitting

Hi
We have a scenario where when we are trying to do a sample sales with Item Category TANN for a domestic customer in INR, there is no accounting entry taking place at the time of billing because the document type is RV and it requires customer mandatorily (as per transaction variant 0200, 0001 assigned to RV in document splitting configuration) and accounting entry for sample sales is not hitting customer. This is expected of system and is correct.
Though when we are trying the same thing for an export customer in USD, accounting entry gets generated at the time of billing WITH DOCUMENT TYPE RV EVEN WITHOUT CUSTOMER IN THE ACCONTING ENTRY.
How is it possible that the same configuration of doc type RV attached to transaction variant 0200 and 0001 CORRECTLY blocks accounting document of Domestic Invoice due to absence of customer in line item BUT IS UNABLE TO BLOCK accounting document of Export Invoice even if the customer line item is not present.
One more surprising element is that the value in the billing document of Export Customer is Nil but still the accounting entry takes place with a value of the sale price of the material
Can someone throw any light on this?
Thanks
Sourabh

I am creating sales order (RE) type with reference to actual sales order
First of all, this itself is wrong. Why you were creating return order with reference to original sale order. You should always create a return order with reference to billing document.
1. Sales order created
2. Delivery Generated
3. PGR Done
PGI Docuemnt not showing and
Again, I dont know why once you have done PGI, why you have created a return delivery ??
thanks
G. Lakshmipathi

Accounting Entry for Depot Excise Invoice

Hi Gurus
We make a STO from factory to depot. I have posted the depot excise invoice via J1IJ but Im unable to see the accounting entry for the excise invoice..
Im able to see the acounting entry for excise invoice for factory sales thru J1IIN..
Pls advise
Rgds..Vinz

Hi Vinz,
I would like to explore more for ur info.
When u create Excise invoice at Factory Using J1iin, accounting entries flow to the system. When u transfer it to Depot, u credit the Excise amount using MIRO and post it to RG23D ( Depot Register)
The value of the excise for which u have taken credit from ur factory would be passed on to customer now.
If you notice carefully, when u take credit of Excise entry in RG23d No accounting entry flows in the system, only value & qty gets updated to Register.
Generally, while deciding the selling price from depot u consider Basic price + Excise duty. since u are passing on the excise benefit to customer, using proforma excise invoice (transaction J1IJ)
So there is no wuestion of accounting entries.
Hey CIN Gurus.. correct me if i am haveing any misconcepts regarding this.
Hope this is clear to you now..
Reward if helpful..

Creation of Excise Invoice for Sample Sales

Hi Gurus,
When i create excise invoice for sample sales against the invoice the excise duties are not capturing it is showing as zero value. Can you give suggestions to solve this.
Regards
Kiran

If the excise values flowing in billing document but not in excise document, then you need to check in the following IMG
Logistics-General --> Tax on Goods Movements --> India --> Account Determination.
There you have to maintain the respective G/L accounts for excise and also in the next tab you have to specify the G/L Accounts per Excise Transaction.
For information, for outgoing excise invoice, the excise transaction type would be DLFC.
thanks
G. Lakshmipathi

Accounting Entry IN Free Goods Scenario

Hi Gurus,
Could you please tell me , what is the accounting entry in Free Goods scenario ?
Advance Thanks to All .
Regards,
Aditya Kumar Patra

Hello Aditya,
For Free goods we use R100 condition type for 100% discount.
when invoice is posted system post credit entry to Revenue account for price condition PR00 and other components in pricing as we post for normal sales invoice.
For R100 condition type system debit the account for free goods account which can be expenses account .
At the end customer will not be debited so there will be no receivables against customer.
accounting entry will look like as below
Revenue account Cr
Free goods account Dr.
Hope it will help.
ATP

Production order settlement (Accounting entries)

Dear Sapians,
I need your advice to clear my following confusion:
I have a finished material which is maintained on Variable price in material master. Assume the price being 100 and only 1 item is in stock currently.
My production department produces 1 qty of the same material now and the total cost of that comes to 500.
Now when the finished goods GR is done to store. The material price booked is picked from the current material master price (i.e) 100. The system posts the following entry
FG Stock A/c Dr 100
   To Cost of good sold 100.
Now the production department is doing the settlement of the above production order. After settlement my material master price changes from 100 to 300 (i.e) 2*300=600. (I find no accounting entry generated during settlement) What actually happens during settlement?
When the goods is delivered(PGI) for sale to the customer. (eg) we sell one unit
The system passes the following entry:
Cost of goods sold A/c Dr      300
To FG Stock A/c                    300
I this above case i feel that my finished goods stock will go negative.
Is the above activity correct?.
I will be greatful if you can explain me the above process completely.
Regards
Naveen

Dear Deepak
Thanks for all your help. I have assigned the maximum point which i can for your support.
Actually the accounting entries i was looking for is as follows:
When 101 is done after production (i.e) GR after production
FG STock A/c
To Factory output A/c
The above entry is posted @ price maintained in the material master.
When the actual settlement of Production order is done using tcode KO88 the system posts the variance between the material master price and the actual price and posts
FG Stock A/c DR
To Factory output A/c
(in case of actual cost is more than the material master price)
OR
Factory output A/c
To FG Stock
(In case of actual cost is less than the material master price)
Please correct me if i am wrong
Once again thanks for you time
Regards
Naveen

Accounting entry problem for cancel billing document

Hi,
We have manufacturing process for SO to DC we follow the proces
Sales order -> delivery -> VF01 -> J1IIN -> VF02 release to accounting,
now when we do the above procees in billing document document flow we can see two accounting entry generated ref. to t. code VF01 and billing document number
now to reverse the above, we are following the procedure
J1IIN reverse -> VF02 cancel billing document we get new cancel billing document numbver then again in VF02 we are releasing the cancel document number,
but earlier when we do the cancelation procedure only two accounting entries were generating under the original billing document and also under the cancel billing document, but now as soon as we reverse the invoice in J1IIN under the original billing document one additional accounting entry is coming which is generated ref. to T. code J1IH document type JM , and when we cancel and release the billing document there are three accounting entery under Cancel billing document number and additional entry is created ref. to J1IH do. no. JM
so what can be the problem hiw one entry is generated by J1IH and what is eefect of this.
regards,
zafar

in billing document document flow we can see two accounting entry generated
Yes this is standard. One for customer debit and another accounting document for excise.
thanks
G. Lakshmipathi

Third Party Miro accounting Entries

Hi all
what is the accounting entries after MIRO in third party process
Where material delivered from Vendor to Customer directly and vendor bill to company
Edited by: sandipamore on Sep 21, 2011 8:45 AM

Hello
Accounting entries for 3rd Party Sales:
After MIRO
Vendor Account - Cr
GR/IR Clearing A/c - Dr
After VF01
Customer Account - Dr
Sales Revenue A/c - Cr
Regards
JP

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.
Anyone have an idea why the system is doing this because the material should be returned on the price it was issued at so that the accounting entries are knocked off (The accounting entries for return deliveries to vendors are of the same price that they are recieved no matter how ever long a period they are returned). How do we stop the system from doing so and if it cannot be done what is the solution to the scenario.
Regards,

The normal entires are as follows (depending on your configuration);
1) Goods issue;
Credit inventory and debit COGS;
2) Billing document;
Debit customer account credit sales accounts;
3) Payment;
Credit customer account and debit cash/ checking account
pls assign points if helpful as a way to say thanks.

Sample Sale accounting entry

Similar Messages

Maybe you are looking for