During PGI system should pass entries in Stock in transit A/c instead of COGS.

[Former Member]

Hi All,

My requirement is at the time of PGI system should pass entries in Stock in transit account instead of COGS.

COGS & Revenue account should hit at the time of Billing to customer !!  

Regards,

Venkata

[suman_sardar2 · Accepted solution]

Hi Venkata,

Your requirement can be fulfilled by some standard SAP configuration.Please check the configuration

below;

Step 1

Please maintain OBYC GBB settings for example assign G/L 205015 "Goods In Transit " for VAX and which Valuation Class you are using for your FG Material.

Step 2

Maintain Sales Pricing procedure with standard condition type "VPRS - Cost" as statistical but maintain a Account key like "ZL2 -Cost Recovery Rev."  in the Account key - accruals column.

Please note that you can define your own account key or use anyone from the standard SAP.

Step 3

Maintain Revenue account determination in VKOA where this ZL2 Account Key is maintained with G/L account 402007-FG In Transit A/C in the G/L Account column and 402008-Cost of Goods Sold in the Provision Account column.

Please find the snap shot which will help you to configure the above issue.

Then test the sales cycle from Sales order to Invoice.

Thanks,

Suman

[Former Member · Accepted solution]

Hi Suman,

Sorry for replying late as I fall ill !!

I simply say one thing after seeing this solution is that it is brilliant !!

I configured as per the above suggestion, at PGI system is posting to Stock in transit a/c only, but I am finding one issue as at the time of billing only revenue a/c is appearing in accounting document not cost accounting.

For VPRS account determination is not happening !!

Please suggest !!

[suman_sardar2 · Accepted solution]

Venkata,

Have you done the Step 2 & Step 3.Please see the screen shot & try again.

Also let me know that is VPRS condition type exists in your pricing procedure or not.

If yes, is it fetching the material cost or not.

Do let me know if possible provide your pricing procedure screen shot and also the VKOA screen

shot.

Thanks,

Suman

[Former Member · Accepted solution]

Hi Suman,

Thanks for your reply !!

Yes I did the all 3 steps but at the time of invoice generation entries are not appearing.

Is there any specific G/L account required for this pls check the below screen shot !!

Regards,

Venkata

[suman_sardar2 · Accepted solution]

Hi Venkata,

Is billing document condition tab fetching the VPRS condition type? and the corresponding Condition value is coming or not.

See as per VKOA account key normally credit the G/L account.Here with the help of account key in the Accrual column system credit the VPRS value to G/L 402007 FG In Transit A/C and provision account debit the G/L 402008 Cost of Goods Sold.

It will work if the Revenue account determination and Pricing is being correctly configured.

There is no such extra configuration required for this issue.

I will advise you to recheck all the configuration mostly VPRS should fetch the Material price coz that is going to be make entry at the time of billing.

Thanks,

Suman

[Former Member · Accepted solution]

Hi Suman,

Really thankful for your inputs!!

I have done the same configuration in system what you have specified.

In billing VPRS is showing the value properly from material master but even it is not creating any entry in accounting document as it is statistical.

I have a question that whether different type of G/L Accounts are being used to achieve this or whether any user exit is being used to achieve the same.

Regards,

Venkata

[suman_sardar2 · Accepted solution]

Hi Venkata,

There is no such need of enhancement, it can be done as you have seen the screen shots.

Please just double check the above config it will work.I also pasted the below screen plz look;

Please maintain the same entry in VKOA for KOFK also.

Picture : OBYC setting for GBB VAX & VAY

Picture : V/08 Pricing setting ZL2 Account key in Accrual column.

Pictute : VKOA Maintain FG Transit in G/L account column & COGS in the Provision account column.

Thanks,

Suman

[Former Member · Accepted solution]

Thanks for your help Suman,

I checked my configue..

In your post in OBYC there is separate G/L Account for FG goods in transit (i.e 205015) & in VKOA there is separate G/L (402007) for FG  in transit.

Do we need to maintain both a/c different in both places as I have take the single a/c for both places in my customizing..

Regards,

Venkata

[suman_sardar2 · Accepted solution]

Venkata,

Sorry for the wrong code pasted in VKOA. There is no issue definitely you will use the same G/L in OBYC and in VKOA.

Please see the below image.

Thanks,

Suman

[Former Member · Accepted solution]

This message was moderated.

[suman_sardar2 · Accepted solution]

This message was moderated.

[jignesh_mehta3]

Hello Venkat,

I guess your requirement is:

At time of Delivery Accounting Entry should be:

Stock in Transit A/c Dr. Rs. 100

To Stock A/c Cr. Rs. 100

At the time of Invoice Accounting entry should be:

COGS A/c Dr. 100

Customer Account Dr. Rs. 200

Sales A/c (Revenue) A/c Cr. Rs. 180

Tax A/c Cr. Rs. 20

Now the above will not be possible because system need equal Amounts at Credit & Debit sides for successful posting to Accounts.

Also COGS posting at time of Delivery is done at Cost Price 9Standard or Variable Cost), while Revenue A/c posting at time of Invoice is done at Selling Price which is Cost + Profit.

Plus, what is the business justification for this requirement?

Thanks,

Jignesh Mehta

[Former Member]

Thanks for your reply Jignesh,

Client recognize revenue after installation of machine only that's why they need it.

1. When they do PGI, the posting should be:
Dr. Goods In Transit (instead of COGS)
Cr. Inventory

2. When they create the billing document, the posting should be:
Dr. AR
Cr. Sales Revenue

Dr. COGS
Cr. Goods In Transit

Regards,

Venkata

[Former Member]

Any Suggestion on this issue gurus !!

[suman_sardar2]

Hi Venkata,

Have you tried the below solutions.Check and confirm.

Waiting for your confirmation...........

Plz   Text Removed

Thanks,

Suman

Message was edited by: G Lakshmipathi

Please dont add such text