During Billing: #3940 Sector 23,Gurgaon, Haryana (India)Pin :- 122015, SAP SD Credit Management Interview Questions. Timely monitoring and research of clearing account items such as PGI (Post Goods Issue) clearing. With this you do PGI in VL01N/VL02N and system creates first entry. Help to improve this question by adding a comment. Accounting entry when Sales Order Created —No Accounting Document created in SD module so document did not flow to Financial Module— Accounting entry when PGI done (Goods issue) Following accounting entry created and transferred to financial module to the respective customer and company code i.e. PGR is incoming material (raw material) and PGI is a Dispatch material. Accounting entry at this stage will be: Stock account Dr (receiving plant) Stock account Cr (sending plant) Note that accounting entries are posted when sending plant does the PGI. Function Modules. Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total. Next when a new customer comes in and requests for the 50 qty of the same material. Hence it is a significant phase in Sales order processing. Suppose a customer demands 100 qty of some material. If full quantity has been picked and loaded, enter 20 PCS but if for some reason loaded quantity is 12 PCS (e.g. For every delivery there should be an invoice. PGI Creates an accounting entry: Change of Inventory A/c Dr ; To Inventory Account; PGI has following effects in SAP: 1. PGI is done when the delivery is complete and the goods are issued to the customer. To tide over the same, you can create VPRS as a statistical accrual condition type and assign COGS Account and Stock in Transit Account in VKOA. In some cases it takes a few minutes or hours but in export process it can take days or months. The upadate in the stock from 110 to 10 is done through PGI. There will be no entry at the time of Proforma Invoice (VL01N) And at the time of Goods Receipt (MIGO) at receiving plant the there will be no Accounting Entry. Link to the Inventory Accounting Enteries in www.sap-img.com. Once done you can again click post goods issue or you can reverse the entire delivery & then delete the delivery & then create fresh delivery. Customer Cr. PGI will work in the SAP SD area while PGR will work in SAP MM area Yes you can reverse a PGI. Prepares and records accounting transactions and ensures that allocation to accounts is accurate. The accounting entries will be: Rebates/Discounts Dr. But the Proposed Entries are as follows: (This will be more similar to Sale and Purchase) 1. This is clearly a change management. ... (PGI… This is an audit objection as well. Now delivery time varies from company to company. "Order to cash" or O2C cycle starts with pre-sales activity. SAP SD Accounting Entries – Scribd – Read Unlimited Books Sales and Distribution Accounting Entries. PGI- Stands for “Posting Goods Issue” During PGI the stock status and accounting entry is passed into MM and FI respectively. For PGI, GL … pjshahu via sap-r3-log-sd wrote: Hello All SD Consultants. (2) Creating outbound delivery (T-code: VL01N) Even here no accounting document gets generated (3) Post Goods Issue . Customer Cr. A single Sales order can have multiple invoices. "Order to cash" or O2C cycle starts with pre-sales activity. Sales and Distribution Accounting Entries a) At the time of delivery of goods (PGI… SAP SD (Sales & Distribution) SAP MM (Material Management) SAP QM (Quality Management) SAP PP (Production Planning) SAP PM (Plant Maintenance) SAP PS (Project Systems) SAP FI-CO (Financial Accounting & Controlling) SAP HR (Human Resource Management) SAP … Accounting document (Cost of goods sold will credited and stock value will be debited.) Help to improve this answer by adding a comment. After PGI, the stock is removed from the books of Plant A and the same is shown as “Stock-in … Vendor a/c (not GL) Credit. 16 Feb 2011 11:31 am || 2 Well, now the system should show you the stock as 10. When we do PGI , two documents will be created-Material document (Regarding stock reduction) Enter T-code MB03 in command field and Enter sales order no in sales order field and execute the report. Hence it is a significant phase in Sales order processing. Then delete the particular item. This… Accounting entry when PGI done (Goods issue) Following accounting entry created and transferred to financial module to the respective customer and company code i.e. Asset Master and value upload 2. Normally clients are doing following entries PGI COGS Dr Finished Goods Cr Billing Customer Dr Sales Go to T.code VL02N --> Enter the delivery number --> Click the Post Goods Issue button on top right hand side. At first you will check whether you have the stock of that material or not. The accounting entries for the sale of goods despatched will flow from the Sales […] Product Costing in SAP Overview Product costing is one of the important tools in SAP environment. There will be no entry at the time of Proforma Invoice (VL01N) And at the time of Goods Receipt (MIGO) at receiving plant the there will be no Accounting Entry. Dr Inter Co Customer (Company 2000) Cr Sales revenue We made required setting however system posts fallowing accounting entry Material Stock account Dr 80 Material Stock Account Cr 100 Stock transfer gain/loss accounts Dr. 10 Freight clearing account DR 10 Can go guide me how we can generate the accounting entry as per business expectation The value updation is again an accounting entry, which takes place at the plant valuation level. Opens new accounts as required. SAP FICO (Financial Accounting and Controlling) » SAP FICO (Financial Accounting and Controlling) Tutorial Accounting Entry during PGI in STO SCENARION. That is standard SAP practice. The next step of continuous accounting is predictive accounting, and it makes sense to see through the future to plan the business operations and make strategies. Share a link to this. I am just giving you my own views that we do PGI when material leaves our premises physically. In Costing based COPA, the COGS is recognized at the time of Billing through VPRS Condition type and cost is recognized in GL at time of PGI. but i still want to know the sound logic of SAP posting COGS at the time of PGI and why not taking Goods in transit methodology to deal with above exceptions. SAP standard setup is to post. This article will give you an overview of Finance (SAP FI) and Slaes (SAP SD) Integration with Order to Cash cycle with accounting entries. We use POD process and these two accounting entries process in export process but in short time deliveries we use simple delivery process with one accounting entry. I know above can be overcome in SD through future available in SD module which will post entry. If the client dont want partial delivery to happen, you can very well control in customer master. Material document will be displayed . Accounting Entry: Cost of Goods Sold A/C Dr. To Inventory A/C. Debit Memos shall be issued in case of price difference, sale tax difference … So your accounting entry would look like: PGI. FG A/C – CR CGST –CR SGST – CR (B/S) OR IGST –CR 2. Step4. How to do the PGI. The accounting entries will be as follow: Bank Dr. Normally clients are doing following entries, In a public limited there are stringent accounting requirement not to book COGS at the PGI time, there are many cases at month end for which partial deliveries have been made during the month and their left over stock is delivered in next month. For the value of goods partially delivered normally clients are booking the invoice as well in order to comply with matching principal of accounting. a) At the time of delivery of goods (PGI) (COGS) Cost of goods sold account Dr Inventory account Cr (This entry is passed by the cost of the item delivered) b) During generation of Invoice Customer / Debtors account Dr Sales/ evenue account Cr Ta!es Cr … Domestic Local Sales Trading products – PGI COGS A/C – DR CUSTOMER A/C – DR SALES REVENUE – CR -Standard SAP Process of Outbound Delivery followed with Billing Document. a) At the time of delivery of goods (PGI) Cost of goods sold account Dr Inventory account Cr (This entry is passed by the cost of the item delivered) b) During generation of Invoice Customer / Debtors account Dr Sales/Revenue account Cr Taxes Cr (This entry is passed by the selling price) c) During collection… After PGI, the stock is removed from the books of Plant A and the same is shown as “Stock-in-Transit” (SIT) in the books of Plant B. d. Billing will follow after PGI in Company 1000. Here no accounting document gets generated. 3) Click on Post Goods issue Button. Data takeover a/c Credit. This… In our scerario we use sap as system for data aggregion . Reversal of Accounting Entry Letter of Credit Dr xxxx. as per the parameters set in SD module Accounting entry when Billing document released to Accounting When you see in the system you will have a stock of 110. If that is justifiable, then we can, accordingly, do some configuration change or master data change to comply the requirement. The accounting entry for Accounts Payable open item upload is:-Data takeover a/c Debit. On the beginning of the next month user reverse the entry. With this you do PGI in VL01N/VL02N and system creates first entry. 2. This section covers Journal Entries of the Inventory Accounting. It involves sales order from customers and ends with receiving the payment from customers. Inventory quantity / valuation is updated, material planning is updated. At the time of PGI: Debit- COGS Account; Credit- Inventory FG Account (Sending Plant) 2. What is Order to Cash Cycle? Also, please make sure that you answer complies with our Rules of Engagement. Again you will check the system. Customer statement send to the customer from SAP will have two invoices . It explains how to determine the cost of product or a unit. We do PGI to update the stock so that if you have delivered some stock that delivered stock should be removed from the present stock. View Notes - SAP SD Accounting Entries.doc from ACCOUNTING 100 at Moi University. This should be clear to you before understanding the logic. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Now for your question why system creates accounting entry at the time of PGI in standard system. After PGI, the stock is removed from the books of Plant A and the same is shown as “Stock-in-Transit” (SIT) in the books of Plant B. d. Billing will follow after PGI in Company 1000. I dont think anything wrong in generating multiple billing documents for a sale order. This article will give you an overview of Finance (SAP FI) and Slaes (SAP SD) Integration with Order to Cash cycle with accounting entries. When material received at customer's site we do POD with VLPOD and system creates 2nd entry and when we do billing in VF01 system creates third entry which is AR entry. It involves sales order from customers and ends with receiving the payment from customers. Billing Due list is updated. Doing PGI is a very important function that shouldn’t be neglected in an actual transaction. EXPORT SALES 2. At time of doing PGI accounting entry should be: Dr Stock In Transit (SIT) Cr Inventory . I have a question regarding the logic behind SAP has configured the accounting entries at the time of PGI and billing in SAP SD module. ; Enter the delivery number you need to process.Hit ENTER. ... Switch the COGS account with a Goods in Transit Account, the goods issue entry will … Stock account . 3. truck already full) you will enter 12 … Exchange Fluctuation Dr/ Cr. In other words you can't reverse the PGI for one item/partial qty in delivery document. If you have an answer for this question, then please use the Your Answer form at the bottom of the page instead. Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is posted to the GL Account (Sales Tax Payable) Accounting entry for sale without a customer: Accumulated Depreciation Dr Loss on Sale (if applicable) Dr We're sorry but the new Siemens doesn't work properly without JavaScript enabled. I would suggest you to use monthly closing for local deliveries and POD process for exports. DEBIT MEMOS. Check The Accounting Document where stock account from BSX is credited & Cogs Account from GBB-VAX is debited with the price as per supplying plant material master. Know someone who can answer? Stock in Transit Cr xxxx. how much revenue organization will make based on incoming sales order data even if no goods receipt or invoice is booked. 2) Enter Outbound Delivery number. at the time of PGI, the cost of the goods COGS is debited, it creates a controlling doc with respect to the material document. 16 Feb 2011 11:31 am || 2 Transaction Keys in SAP: In SAP we have two transaction keys; 1.BNG (Invoiced but not yet delivered) 2.GNB (Delivered but not yet Invoiced) In standard we use three GLs to perform the process for BNG In Normal Sales Process, If PGI is not done, System Gives Error message at After PGI, the stock is removed from the books of Plant A and the same is shown as “Stock-in … Maintain internal accounting controls that are consistent with Company requirements. What was the reason given by your clients' audit team? ... My work as a consultant at Sobeys consisted of making data entry into SAP, process the email and address, sort and classify the documents. Accounting entry at this stage will be: Stock account Dr (receiving plant) Stock account Cr (sending plant) Note that accounting entries are posted when sending plant does the PGI. ; Step 2) Enter the Plant and Storage Location. Inventory quantity / valuation is updated, material planning is updated. SAP S/4HANA 1809 has introduced predictive accounting […] This tutorial explains What is Chart of Accounts, types of Chart of Accounts how to Define Chart of Accounts in SAP FICO, In the chart of accounts list you enter the charts of accounts that you want to use in your organization (at client level). Customer Delivery - Stock in Transit (EHP5 - LOG_MM_SIT functionality). Note: In case of any Sales Tax /Excise duty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on the Tax Code selected the entry is posted to the GL Account (Sales Tax Payable) Accounting entry for sale without a customer: Accumulated Depreciation Dr Loss on Sale (if applicable) Dr When material received at customer's site we do POD with VLPOD and system creates 2nd entry and when we do billing in VF01 system creates third entry which is AR entry. It means for the left over delivery they will do the delivery in next month and book another invoice in next month so we have two invoices posted against Sale order. When we do PGI, two documents will be created a) Material Document and b) Accounting Document. What you are talking about is stock in transit entry by following this document. So now you can deliver the 100 qty from the stock. And when material is no more in in our premises it means out stock is reduced and company is no more liable for this since it is in transporter's liability now. PGI Concept: PGI stands for Post Good Issue. Find out what life is like at UPS, then browse jobs and apply today! SAP FICO (Financial Accounting and Controlling) » SAP FICO (Financial Accounting and Controlling) Tutorial Accounting Entry during PGI in STO SCENARION. Then go to VL02N delete the picking quantity. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. The list already contains sample charts of accounts for some countries. Step 1) Open VL02N transaction. This should be clear to you before understanding the logic. If You are not able to process PGI, then check WM is activated in storage location or if one step procedure check PO whether receiving storage location entered or not. Charts of accounts GKR and IKR, for example, have been entered for Germany. In other words when the physical stocks are delivered from the storage location PGI is done to reduce that delivered stock from the present stock. 5. By T.code VL09 you can reverse the entire quantity but partial quantity reversal is not possible. You should only submit an answer when you are proposing a solution to the poster's problem. Accounting entry at this stage will be: Dr. COGS (cost of goods sold) Cr. Accounting entry at this stage will be: Dr. COGS (cost of goods sold) Cr. Stock account . COGS at Goods Issue BUT it can be changed. Go to T.code VL02N --> Enter the delivery number --> Click the Post Goods Issue button on top right hand side. To do the Reversal PGI Steps are following: 2. the material doc at PGI has an effect of quantity and value updation. PGI will led you to the decrement of your physical stock and PGR will increase all your physical stock. Attachments: E.g. Dr Inter Co Customer (Company 2000) Cr Sales revenue First of all let me tell you that system doesn't create two accounting entries at the time of billing. as per the parameters set in SD module What is Order to Cash Cycle? 3. Read UPS reviews, including information from current and former employees on salaries, benefits, and more.