Sales Change as per IFRS

[Former Member]

Dear All,

We have a requirement where in COGS and sales should be booked in accounts when goods / material reaches to the customer based on incoterms. Also excise should be accounted at the time of PGI.

Have gone through different links on SCN and found LOG_MM_SIT business function with which we can achieve above requirement.  But for doing the same i need to change the complete sales cycle for domestic. and as this is IFRS requirement and has top priority, if anyone can help me with some other solution then please let me know.

Thanks

Ashwini

[moazzam_ali]

Hi Ashwini

Please check the below SAP note in which SAP has mentioned that the financial statement structure for India Schedule VI format is not supported by SAP.

SAP has delivered some changed in new S4HANA to meet IFRS changes but for your requirement you need to use this business function which you have mentioned. You need to use POD (Proof of delivery) functionality in order to meet this requirement.

Could you please share that whether your process is MTO or MTS? This also has an impact in using this business function.

2279087 - Companies Act India � Change in Accounting standards and move to IFRS

Thank$

[Former Member]

Hi,

Yes we are going to use POD for domestic, but in case of export the sales process is as below.

sales order (Port location) -->PR in background (STO plant to port) -->Delivery against STO --> Invoice --> Excise invoice --> ARE1

Sales order -->Delivery (After ARE1 port to customer)-->PGI (Inventory and COGS)--> Invoice

In above process we need to hold inventory and COGS and want to post when actually material reaches to the customer based on ETA at customers location, as per IFRS requirement.

Also we need to book expense like THC, BL charges, and other charges before invoice. Request you to provide solution.

Thanks

Ashwini

[moazzam_ali]

Hi

In your above scenario what you can do is use POD process on your delivery which you create after completing the STO process. This is delivery against which you are going to create accounting invoice. When you PGI the delivery system won't book COGS. It will be booked when you confirm POD.

Regarding other expenses like BL and THC this is best to use transportation and if you are not using that still you can enter these conditions directly in invoice which will be created after POD confirmation.

Let me know if you don't get the process.

Thank$

[Former Member]

Hi,

Thank you for your reply. Regarding expenses we were thought of using transportation shipment but the problem is we have almost 10 conditions to enter at the time of shipment creation and most of them should hit different GL's which we can not do in shipment costing as per my knowledge. If you have some solution for this then it would be great for me.

Please suggest.

Thanks

Ashwini

[moazzam_ali]

Hi

We can do that but for this we should have different item category for each expense. You need to map GLs with line item category. I did this in my last project.

Thank$

[Former Member]

Thank you so much Moazza,

Thats too good. can you please share process with me how to go about it.

Thanks

Ashwini

[moazzam_ali]

Hi

For this you need to enter GLs manually in each line item which is not a good idea. I mixed-up it with different vendor for different item categories. I did this for meeting the requirement of having different vendors. For GLs you might need to go for some ABAP enhancement or you may opt the manual entry of GLs in shipment cost document for each item.

Thank$

[Former Member]

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