on 05-15-2012 2:23 PM
Dear Gurus,
Could you please let me know the difference between
1. Goods Issue(MIGO) and Delivery (VL01N)
2. Billing and Invoice
What will happen in these stages. Ex for Goods Issue and for Delivery. (Any accounting entries for each step?)
Regards,
Sridhar
Hi,
In brief, goods issue is the process of removing the stocks from your Plant/SLoc, whereby the remaining stock available is updated, customer requirement updated, order updated, accounting document created, material doc created, G/L account updated etc etc.
On the other hand, delivery is the process of carrying out the delivery of the goods to your customer, whereby the process of goods issue will happen in order for the goods to be delivered to your customer. Delivery will always happen at one location (be it physical or logical) of your company, which in SAP this is called the Shipping Point.
During Goods Issue, the following happens:
Dr. Cost of Goods Sold (based on GBB transaction in OBYC)
Cr. Inventory Account
During Billing and Invoice, the following would happen:
Dr. Customer Account
Cr. Sales Revenue Account (based on ERL Account key in your pricing procedure)
And finally when you receive payment from your customer for amount due, the following happens:
Dr. Clearing Account
Cr. Customer Account
Hope the above helps.
Thanks.
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Hi Sridhar,
There is no difference. Invoice and Billing is of the same thing in SAP in SD. In some circumstances, the terminology "Invoice" is also broadly referred to as Invoice Verification in Purchasing, which is not relevant in your case.
The standard accounting entries (including payment received) has been provided in the earlier thread.
Thanks.
Addition to above please find my comments.
Could you please let me know the difference between
1. Goods Issue(MIGO) and Delivery (VL01N)
Goods issue in MIGO mainly used for issueing some goods for production or cost centre or scrap ...etc.
Normally you will get entries like Credt -Ve stock account
Debit +Ve cost centre account (If you issue goods against cost centre)
VL01N delivery means normally the delivery against sales order
According sales order type you will get accounting entries .
Credt -Ve stock account
Debit +Ve to depends upon your process.
2. Billing and Invoice
Billing Nor mally they call this terminalogy in SD process where you raise bill to customer agaist supply of the goods.
Invoice is normally used in MM process where vendor sends invoice to us for procuring goods.
What will happen in these stages. Ex for Goods Issue and for Delivery. (Any accounting entries for each step?)
Each step you will get accounting entries...
Hi !
According to the tcode mentioned above ( MIGO ) which is basically used in case of Goods receive not Goods Issue. where ever it is required to receive any material against any purchase order. (like any procurement or thirdparty sale etc.
Goods issue will happen with t-code VL02n. when the material will move from the organization premises.
In both the cases the Inventory management will update. i.e in case of goods issue it will decrease where as in case of goods receive it is increase. so both are different .
Delivery is the document type by which we perform the delivery activities., after the sales order entry .
Billing and invoice both are same . After the goods issue the billing/ Invoice will happen.
After the invoice :- Debit will posting customer receivable account
and credit will posting sales revenue account.
and after the payment received it will vice versa.like:-
Credit will posting to customer receivable account and debit will posting to sales revenue account.
Hope it ll help you.
Regards
Pitabash
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In IS-Telecom we use Billing and Invoicing . Here both are seperate process and have different meanings .
An Invoice consist of one or more than one billing documents , sent to customer at periodic interval.
Billing document consist of one or more than one billable items .
But in SD Billing and invoice is almost same .
Thanks
Rajesh
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