Acctg. doc after PGI

[Former Member]

Plz let me know what happens with the Accounting Document after PGI, and after Invoice.

What type of Acctg Doc generate.

I'm getting confused about the Debit and Credit to G/L

Gurus Please clear it,

Thanks

[Former Member]

Hi,

If you want to know about the Debit and Credit aspect of the accounting, please go through some basic accounting books; preferably PUC or Plus 2 books. The following is the Golden rule of accounting; the entire accounting system is based on this principles.

Personal Account: The Receiver Debit, The giver Credit

Real Account: What comes in Debit, What goes out Credit

Real Account: All Expenses and Losses Debit, All Incomes and gains Credit

Let me explain one:

While creating billing document by VF01, the customer is debited; the sales account is credited. The customer is Personal Account; as per rule u2018The receiver is Debitu2019. The sales account is Real account; as per rule u2018what goes out is Creditu2019. Every accounting entry happens like this.

Regards,

K Bharathi

[Lakshmipathi]

Once you post the goods issue, following accounting entries will happen

STOCK-FIN. GOODS::::::Cr

FG - COGS:::::::::::::::::::::Dr

Once you generate billing and accounting document

Customer::::::::Dr

Sales a/c::::::::Cr

thanks

G. Lakshmipathi

[Former Member]

Thank you All

Edited by: Sarat Orissa on Jan 15, 2010 10:05 AM

[Former Member]

Hi,

After the PGI, the Accounting Entries are

COST OF GOODS SOLD -

---

Dr ;

INVENTORY A/C -

---

Cr ;

After the Invoice document the Accounting Entries

CUSTOMER A/C -

---

Dr ;

REVENRU A/C -

---

Cr ;

Here you have to know some accounting basics to understand the CREDIT & DEBIT concept

There are three types of Accounts

1. Personal Account

2. Nominal Account

3. Real Account

In Personal Account : We have to Credit the Giver and Debit the Receiver, so customer is Receiver so he will be Debited

In Nominal Account : Material which comes in will be debited and which goes out will be Debited

In Real Account: This is the Company Account to maintain the Revenues and Expenditure

Revenues/Profits will be Credit

Expediture/Loss will be Debited.

You have to apply these three rules

Hope it is helpful

thanks,

santosh

[Former Member]

During PGI, the goods move out of company's stock, hence an accounting entry will reduce the Inventory valuation. But at this point the customer is not billed, so he is not liable for payment.

During Billing, Customer is invoiced for material despatched. At this point Customer becomes liable for making the payment.

To sum up the above, at PGI level inventory is impacted and at Billing level Customer is impacted. The accounting entry is already specified in earlier response by Lakshmipathi.

Regards,

Rajesh Banka

[Former Member]

Refer the following link for accounting entries in SD

[http://sapsdforum.com/2008/09/25/sales-and-distribution-accounting-entries/]

Mr. Bharti has clearly given example of Debit and Credit concept of Accounting.

G.L refers to General Ledger Entries.

Hope it solves your problem.