Invoice posting - which Dr's and Cr's are made?

[Former Member]

I am trying to understand how SAP posts standard invoices, from a Double Entry or T Accounting aspect. If I post an invoice to a supplier, I can see it posts a credit to the vendor account number, and a debit to a GL code, normally with a cost centre. If I run a Profit Centre report I can see the entry against the Profit Centre, is this a mirror posting, or is another entry involved? If so where does the opposite entry to that go.

I am trying to understand all of the debits and credits so it all balances.

[Former Member · Accepted solution]

Your point :

I am trying to understand how SAP posts standard invoices, from a Double Entry or T Accounting aspect. If I post an invoice to a supplier, I can see it posts a credit to the vendor account number, and a debit to a GL code, normally with a cost centre. If I run a Profit Centre report I can see the entry against the Profit Centre, is this a mirror posting, or is another entry involved? If so where does the opposite entry to that go.

I am trying to understand all of the debits and credits so it all balances.

Answer:

Basically you are trying to compare with FI and CO posting :

Assumption : in ECC6 with all settings done.

FI posting CO posting (Real) CO Statistical (PC)

Posting a vendor invoice for expenses

FI Doc CO doc PCA doc

Dr Expenses A/c Dr GL a/c Dr to Cost Element Dr to Cost Element

(with cost center) with Profit Center

Cr Vendor A/c Cr Vendor No posting as it is not CE Cr Account

(sub Ledger) with profit Center

Cr GL a/c

(Reconc A/c)

Trial balance is taken for GL accounts and PCA Accounts which will tally.

CO document - which is posted from FI transactions of this nature posts only one side.

CO document which is posted from CO transactions will post both sides in CO. hence There is no TBal tallying in CO.

According to entries and configuration further - In CO, Cost element can post further more to different cost objects like Internal order , profitability segments.- But Only one cost object will become Real by SAP automatically to avoid duplicate allocations of cost and all others will become automatically statistical in CO - Prof Segment, WBS element, MTO Sales order, Prodn order, PMaint order, Internal order, cost center - cost center is the lowest object.

Hope this clear.

[Former Member]

So Just to clarify, if I post a supplier invoice for £1000, then a Cr of £1000 appears on the supplier account, a Dr of £1000 appears on the expenses line against the project code, and then a statistical posting Dr of £1000 appears on the Profit Centre. So 2 are true Dr's and Cr's, the other is a mirror/statistical and does not need an opposing entry?

[Former Member]

You are right that it is just a mirror posting; no other "accounting" entry is involved. However, there is a PCA document as well, which is a follow-on document to the FI document. The assignment of a revenue or expense to profit center is purely statistical, so you can divide and monitor a company code's business transactions profit center wise. By statistical, what we mean is that profit center itself is not an account assignment object for posting in FI - cost center, order, etc. are CO objects, which are assigned to profit center to ensure that the data is passed to PCA. Now that there is no additional entry, there is no question of opposite entry.