Is proforma Invoice necessary for STO process

[gino_babu2]

Hi Gurus

I have one confusion in assiging proforma invoice for normal STOs and Depo STOs. I f we assign the same there wont be any accounting entries right? then why is it necessary to have a proforma invoice to be created instead of one normal invoice in STO?

Regards

Gino Babu

[former_member184065]

Dear,

If we assign the same there wont be any accounting entries right? then why is it necessary to have a proforma invoice to be created instead of one normal invoice in STO?

You can very well create One Invoice that is Normal Invoice for accounting purpose instead of creating another proforma invoice ( two invoices ,Proforma and normal invoice ) .

Note : Actually , Proforma invoice is creating for proof of Billing to customer .In some companies ,first they will create proforma invoice immediately when they created delivery  and later some days or weeks they will create original invoice and excise invoice .

If you have any doubts please let me know .

Thanks,

Naren

[Former Member]

Hi Gino,

Yes, you are right there will not be any accounting entries with proforma invoice. The Only thing we need proforma invoice in case of stock transfer orders is to generate excise invoice in which accounting entries will be passed. To create excise invoice in sap we need reference billing document which carries the flow of excise duty values. So, we are creating proforma invoice. When you are despatching finished goods from a manufacturer end those goods are liable to pay excise to the goverment. So excise invoice creation is mandatory.

Hope it is clear

&

Let me know if have any doubts.

Regards,

S.Himavanth.

[gino_babu2]

Hi Himavath Thanks.

My confusion is that we need to have accounting entries for excise invoice after proforma creation. Is that achievable if we go for proforma invoice creation or is it necessary that we need to have proforma invoice for STO?

[Former Member]

Hi Gino,

I had already clearly expained in my previous post that yes, we need proforma invoice(mandatory) but there will be no accounting enteries in case of STO. Only accounting entries will be passed in excise invoice.

Accounting entries are as follows:

Excise duty paid Dr

BED Excise payable Cr

ECS Excise payable Cr

SECS  Excise payable Cr

As we are supposed to pay the excise duty to the government when we are despatching goods from manufacturing plant. No other accounting enteries are required and also as we need billing document reference for creation of excise invoice in sap to get excise duty values we are creating proforma invoice.

Passing accounting entries are based on the client requirement whether which accounting entries they require.

Regards,

S.Himavanth.

[gino_babu2]

k. Thank u very much