How sales and accounting are interrelated.

[Former Member]

Can anyone tell me how sales and accounting are interrelated.

[Former Member · Accepted solution]

Dear Naren

There is pricing pro for every doc. type. For conditon type in pricing we give accounting keys so that values of the condtion hit right g/l codes maintained in TRAs. VKOA.

[Former Member]

Hi Narendra

Revenue Account determination is a link between FI and SD.

When company is selling, there are some revenues and expenditure, for example

sales revenue is the revenue company is getting and discounts, rebates, taxes, frieghts etc company is incurring expenditure. So we have to update Accounting documents when we are selling our products.

In Revenue account determination when we save the billing document the sales values in the billing document wil be automatically posted to the coresponding GL Accounts. for this go to VKOA assaign GL Accounts

Award points if it is useful

Anil

[Former Member]

HI .,

We give the account keys in prcing and do the revenue account determination,so automatically sales and accounting is related

Regards

narayana

[Former Member]

HI Narendran,

Its simple funda:

Any company is selling only to make profits. what we selling is an asset for the company till the sales is complete. so you need to keep tract /have account for the finished goods you have in stores so they are accounted.

What ever is sold to customer you need to collect the money from the customer so you need to know what you have sold and how much money you need to het back from teh customer. hence you need to keep tract /have account for what eveer you have sold.

Hope this provides some understanding

REWARD IF IT HELPS

regards

Srini