on 12-23-2013 2:50 PM
Hi,
I have the following issue in the Free of Charge Sales - CIN - Accounting Entry.
<Text removed by Moderator for normalizing the priority.>
Thanks in advance.
Creating a Sales Order for FOC Sales.
Created:
Pricing Procedure:
Step Cond type Description From to
10 ZPR1 Price Stat-X, Acc Key – ZDI, Acckey accru-ZDI
200 JEXP BED12% 10 Acc Key -EXD
425 JECP Cess2% 200 200 Acc Key -ECE
426 JA1X SHECess1% 200 200 Acc Key -HSC
435 Net Value Base+Exc 10 426 Cal type -2
650 DIFF Rounding off Required-X, Req-13, Cal type-16, Bas ty-2, Acc Key ERS
941 EK02 Calculated Costs Stat-X, Sub tot-B
Account Determination – VKOA
APP COND TY Chart of Acc SOrg Cus AAG Mtl AAG Act Key G/L Acc Provision Acc
V KOFI XXXX SO1 A1 B1 ZDI 5000 (Sales Promo Acc) 5000 (Sales Promo Acc)
V KOFI XXXX SO1 A1 B1 EXD 5001 (BEDpayable)
V KOFI XXXX SO1 A1 B1 ECE 5002 (Cess paybl)
V KOFI XXXX SO1 A1 B1 HSC 5003 (SHECess Paybl)
After I create the Billing document, I get the following accounting entries:
Customer Account Dr. 1236.00
Sales Promo Acc Dr. 10000.00
Sales Promo Acc Cr. 10000.00
BED Payable 12% 1200.00
ECess Payable 2% 24.00
SHECess Payable 1% 12.00
The Customer Account Dr. entry should not come. It again has to hit the Sales Promo Acc only.
What are the changes to be made?
Regards
Vydeesh
Message was edited by: Jyoti Prakash
The Customer Account Dr. entry should not come. It again has to hit the Sales Promo Acc only.
I didn't think it is a right idea/way to include excise amount to Sales Promo Acc for free of charge sales.
You need to get those duty amount different to "Duty adjustment a/c". B'coz you are liable to pay those duty to Govt, until you have proper exemption for paying those duty. Which you will not be able to differentiate, if take to Sales Promo a/c. For hint on this, refer my suggestion in following thread,
- Need seperate GL for Export Pricing procedure in commercial billing
Alternatively, you can follow, what is been suggested by Lakshmipathi Sir.
But in my opinion, you should have discussion with your Finance for this.
Regards, JP
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Hi,
While I do not know very much in detail about the Taxation and Indian Excise rules in India, I think what Jyoti has pointed out about the duty amount payable to the Govt. is most likely the scenario you still have to deal with.
Normally, there are two scenarios in the case of FOC Orders:
1) The Item is Free to the Customer to the extent of the value of the goods, but the customer has to pay the Taxes pertaining to that;
2) The Item is in essence totally Free to the Customer and he does not have to pay anything - not even the taxes. That being said, these Taxes have still to be paid by the Client/Company as they are due to the Govt.
I think you are referring to the Second Scenario ! Right ?
Assuming that being the case, from the system's SAP Accounting Auto Postings Point of View, what you are looking for probably is that the Promotion Account has to be hit with the Tax Amount and the Customer Reconciliation Account has to be zero.
For the above scenario, what Jyoti has pointed out is the most likely solution that of having 100 % Discount.
He might be able to give more details, else, I can pitch in.
Thanks.
Hi,
As mentioned by Jyoti in his replies, this is similar to the settings done in Export Scenarios. I saw his other thread of discussion through the link. That is fairly straight forward and pretty detailed.
You should be getting a good idea from that link.
Basically the point is to keep the Tax Condition Types as is and have New Negative % Discount Condition Types for each of these as a copy [referencing their From Steps]. Link this to the Account Key of Promotion Account.
Hope Jyoti's detailed explanation in his post link helps.
Thanks.
To post value in Sales Promotion expenses, you need to have a separate Account Key assigned to that condition type and for this Account Key, you need to maintain the same G/L Account in VKOA which you maintained for 10K you have shown in the break-up.
G. Lakshmipathi
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The requirement is not related to CIN but general and hence, moved back to Sales and Distribution
G. Lakshmipathi
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Moved from SAP ERP Sales and Distribution (SAP SD) to Internationalization and Unicode. Please post all CIN related queries here.
G. Lakshmipathi
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