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Expense PO

Dear experts,

Can anybody explains me what is an expense PO? What is the process of receiving materials for expense PO.We have a WM managed system.Are they received into our WM when we do GR?

Thanks in advance

replied

Hi,

Expense PO is created basically for the materials which are not inventory managed for e.g. Stationary items, cleaning consumables, lab consumables, production and maintenance consumables.

These POs are always maintained with an Account Assignment Category (For e.g. K - Cost Center) against which the Expense should get booked after GR. As a result, Quantity and value both will get expensed out during GR.

If you want to maintain stock of material but value should get expensed out during GR then use Materials with material type UNBW (Non-Valuated)

Process Flow: -

1. ME21N - PO with Account Assignment Category (For e.g. K - Cost Center), In Account Assignment tab, maintain GL A/c and Cost Center

2. MIGO - GR w.r.t. PO; it will post following A/c entry;

(GBB-VBR) Expense A/c - Dr
(WRX) GR/IR Clearing A/c - Cr

3. MIRo - LIV for the PO; it will post following A/c entry;

Vendor A/c -Cr
GR/IR Clearing A/c - Dr

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