A/C entries, Expenses and Accruals during sample sales invoicing

[Former Member]

Dear Experts,

I was aware about the theoretical concept of accrual functionality in SD condition type where system posts entries to FI without debiting customer account. Day has come to implement the same practically where earlier discussions in scn by friends have not helped enough as there is no clear end of any post related to this.

Back ground of scenario;

I have configured Free of charge sample sales to deliver and then billing. Billing required because of business needs below entries;

Quality Expenses G/L: 7100012 Cr 124

Sales Basic Price: 100 Dr

Custom Duty: 10 Dr

CVD: 13.2 Dr

Cess: 0.46 Dr

HECess: 0.23 Dr

All of my condition types are accruals. System doesn't debit customer account as well as expected. However, entries are coming like below;

I have tried with all combinations in pricing procedure with account keys/accrual keys and G/Ls in VKOA but not yielding expected results.

Please suggest your expert comments.

Thanks.

[Former Member]

Dear JP,

While putting across question to forum I had by mistakenly showed expected accounting entries wrongly (i.e showed Dr instead Cr entry). Indicating below the correct entries expected by business;

Quality Expenses G/L: 7100012 Dr 124

Sales Basic Price: 100 Cr

Custom Duty: 10 Cr

CVD: 13.2 Cr

Cess: 0.46 Cr

HECess: 0.23 Cr

Simply putting, System should bring Quality Expenses G/L: 7100012 instead of debiting customer A/C.

Also, so far status remains same, although I tried with multiple changes and thoughts.

Please suggest/help. System is debiting customer even with R100 100% discounted.

Thanks.

[jpfriends079]

Hi VRK,

Can you provide the screenshot of your pricing procedure?

In meantime, refer following discussion, just for your reference:

-

Thanks, JP

[Former Member]

Dear JP,

Here below;

Thanks.

[jpfriends079]

HI.

1. 100% Discount

R100

Why are you using this condition type with Std routine against it in you pricing?

Are you using free goods determination? VBN1?

If you are not using Free goods determination. Then simply have discount type maintain in VK11 and maintain % as 100.

2. When you have ERL maintained for ZSMP. Do you really want a/c determination for ZPR1 too?

3. In Item Category used, what value you have in Pricing of Business Data? Refer KLN - Free of Charge Item

4. Did you refer the thread suggested by me in my previous post?

Thanks, JP

[Former Member]

Dear JP, Thanks. I have made further changes as suggested; screen shots for reference;

1. Removed account key from ZPR1

2. Replaced discount key with K007

No changes made in VKOA...screen fyi for quick reference

No changes made in VKOA...screen fyi for quick reference

Sales order condition screen for reference:

I have used KLN standard item category itself now. Business data Pricing is blank.

Billing is stuck due to order without charge.

Awaiting your feedback sir.

[Former Member]

Dear JP,

Still not been able to get through and awaiting feedback.

Few points for understanding and clarifications; I have gone trough the threads you shared but I wasn't either able to understand or correlate the scenario with mine and I would need more time for this as I have very little understanding of solution to complexities involved with. In my case (SEZ company) no excise or CIN involved.

Please correct if I am wrong in below;

1. I believe I should have ZSMP and ZPR1 both in pricing procedure. (So in sales order??)

2. I would need account determination for ZPR1 some how (as basic price will be for this c.type)

3. ZSMP (made accrual with accrual key) is finally I need only for Dr entry after billing (instead of customer) as explained below and earlier as well.

(ZSMP) Quality Expenses G/L: 7100012 Dr 125.42

(ZPR1) Sales Basic Price: 100 Cr

(JBCD) Custom Duty: 10 Cr

(JCVD) CVD: 13.2 Cr

(JCSS) Cess: 0.46 Cr

(JHEC) HECess: 0.23 Cr

(JSAD) SAD: 1.53 Cr

4. K007 100% discount happening in sales order but still at the end its debiting customer instead of debiting ZSMP (quality expenses)

5. Please let me know what changes make ZSMP to come in place of customer account debit

6. Item category kept is relevant for Billing Relevance (A). And Pricing left blank.

7. What specific should be a combination of account key and accrual key in pricing procedure against ZSMP and ZPR1 and VKOA?

Your expert suggestions would help me resolve this urgent business need.

Thank you.

[jpfriends079]

Hi VRK,

FYI, you can't have accrual entry for duties and tax. Ideally for your requirement you should have condition type for 100% discount. Where you need to place this discount for Price + Duty. And only quality expenses will have accrual entry. So, in that case, your account entry will be:

Quality Expenses G/L: 7100012 Cr 124

Quality Expenses G/L: 7100012 Cr - 124

Sample Sales Adjustment A/c(100% Discount) Cr 124

Sales Basic Price: 100 Dr

Custom Duty: 10 Dr

CVD: 13.2 Dr

Cess: 0.46 Dr

HECess: 0.23 Dr

Thanks, JP

[Former Member]

Dear JP,

First of everything, thanks for your time to review and explain the details. Just would like to inform you that I already have R100 as showing 100% to customer in sales

As per your suggestions, I have now replaced all earlier accrual conditions with normal conditions including base price. I have kept ZSMP (quality expense) as accrual in pricing and assigned accrual key to it as showed below.

In VKOA below;

Finally for my surprise its now debiting customer;

Please suggest, I would like to have Sample Quality expenses in place of customer.

Thanks sir.

[jpfriends079]

Hi VRK,

Along with accrual a/c key, try with having ERL and Reqt =2 at Sample Quality Expenses.

Thanks, JP

[Former Member]

Dear JP,

Thanks for the feedback. Still results remain unchanged. Notifying you of my changes below along with results for your review sir. I have assigned ERU as ERL has already been assigned to base price.

Look forward to your suggestions in this regard please.

Thanks.