Integration
I
Movement types: Posting keys in FI
101 à Material receipt against purchase order/production
102 à Reversal of 101
201 à Issue to cost centre (stores of all departments)
202 à Reversal of 201
261 à Issue to orders (Raw material shows)
262 à Reversal of 261
521 à Material receipt with out production order
522 à Reversal of 521
561 à Opening stock taking
562 à Reversal of 561
601 à Delivery
602 à Reversal of 601
Process key (Transaction key)
These are system defined keys
1) BSX àInventory postings
2) WRX àGR/IR clearing (G.R – Goods receipts)
(I.R – Invoice receipts)
3) PRD àPrice difference/production order differences
4) GBB àOffsetting entry for inventory posting
a) VBR – consumption
b) VNG – Scrapping
c) BSA – Opening stocks taking
d) SUF – Production receipt against production order
e) ZOF – Production receipt with out production order
f) VAY – Delivery where sales account is a revenue element
g) VAY - Delivery where sales account is not a revenue account
h) AUA – Production order differences
GBBVBR – Raw material consumption A/C Dr
BSX - To Inventors raw material local A/C
Valuation class:
- Valuation class determines the G/L accounts to be posted automatically.
a) Raw material: 4 valuation classes
– Local
- Imported
- Inter unit
- Inter company
b) Stores: 2 valuation classes
- Local
- Imported
b) Finished goods: 1 valuation class -Own goods
Valuation area (plant) | Chart of accounts | Company Code | Valuation group code |
AML | AML | X | |
AML | AML | X | |
AML | AML | X |
Advantage is we need not create valuation group code each company code wise.
Material types Price control Purchase price
1. Raw material – ROH - V – Moving average price - Available
2. Stores & Spares – FRSA - V - Moving average price - Available
3. Packing material – VERP - V - Moving average price - Available
4. Finished goods – FERT - S – Standard price - Raw material + overheads
5. Semi finished goods:
Purchased – HALB - V – Moving average price - Available
Produces – HALB - S – Standard price - Raw material + overheads
6. Traded goods – HAWA - V – Moving average price
7. Services – DIEN
Material types – similar to account groups in G/L
In M.M we create material mater
- Material master is to be created under material type
- Material master to be created at plant level
- When no. of plants are using same material it will be extended to other plants
- Material periods we can open 2 periods at a time
- In G/L it is called as tabs, where as in MM it is called
No. of views like:
- Basic data
- Purchase data
- Sales data
- MRP data
- MRP data
- Ware house
- Quality
- Accounting
- Costing
Why systems support inventory account, not purchase account:
Purchase order
Price – 10
Qty – 5
Taxesà 8% Cenvat
4% VAT
Other expenses à 2%
In normal accounting system
RM 1 If other expenses not taken
Opening stock 0
Add: Purchases 63
-------
63
Less: Closing stock 10
------
Consumption X_
If invoice is not taken (Only Delivery challan copy is taken)
Opening stock 0
Purchases 0
-----
0
Closing stock 20
------
Consumption _X_
In SAP
Opening stock - 0
Purchases 5 -63
Consumption 3 – 37
------
Closing stock 2 – 26
(Here the price of the goods is taken from purchase order).
MM flow (Material management flow)
1. Material requisition: Production dept to stores – called internals
If the material not available, stores department raised.
2. Purchase requisition – stores to purchase dept
3. Purchase dept call for enquiry, quotations & price comparisons
4. Raising the purchase order by purchase dept
Purchase order contains àVendor, Material, plant, quality, rate, delivery terms and payment terms
5. Release procedure – Work flow
Up to 10000 àManager Purchases
6. Goods receipt à (G.R)
G.R should be against purchase
Inventory Raw material local Dr – Balance sheet current asset – BSX To GR/IR clearing raw material local – Balance sheet current Liabilities – WRX
7. Invoice verification à Verification against GR (or)/Purchase orders
GR/IR clearing Raw material Dr – Balance current Liabilities – WRX
To party – Sundry creditors – Balance sheet current liabilities – Feam po
8. Consumption:
Raw material consumption local Dr – P&L debit – GBBVBR
To Inventory raw material local – B/S current assets - BSX
9. Wages payment:
Wages A/C Dr
To Bank A/C
10. Production receipt:
Inventory finished goods (At product cost) Dr – Balance sheet current assets – BSX
Increase/decreased stock finished goods – P/L A/C credit – GBBAUF (Production order) GBBZOF (NO production order)
11. Delivery:
Increase/decrease in stock finished goods – P&L credit: GBBVAY – sales (At product)
GBBVAX – Sales not revenue account
To Inventory finished goods – Balance sheet current asset – BSX
12. Sales billing:
Customer A/C Dr – Sundry debtors – Balance sheet current Asset – From sale order
To sales – P&L A/C credit – ERL
Profit & Loss A/c | |||||
(8) Raw material consumption (9) Wages Surplus in Profit & Loss | 100 10 40 | (10) Increase/decrease in finished goods (11) Increase/decrease in finished goods (12) Sales | 110 110 | 0 150 | |
150 | |||||
150 | |||||
Balance Sheet | ||||||
(6) GR/IR (7) GR/IR (7) Sundry Creditors Surplus in P&L A/C | 100 100 | 0 100 40 | (6) Inventory Raw material (8) Inventory Raw material (9) Bank (10) Inventory finished goods 11) Inventory finished goods (12) Sundry debtors | 100 100 | 0 -10 0 150 | |
110 110 | ||||||
140 | ||||||
140 | ||||||
Integration is based on 3 rules:
1. In material master we specially valuation class
2. For valuation class we assign G/L accounts based on the nature of transaction.
Material No | Valuation class | Inventory Postings (BSX) | GR/IR clearing (WBX) | Consumption GBRVBR |
RM1 | 3000 RM local | 200121 (Inventory R.M. local) | 150000 (GR/IR clearing RM local | 400000 (Raw material consumption) |
RM2 | 3001 RM Imported | 200122 (Inv. RM imported) | 150001 (GR/IR clearing RM Imported) | 400001 (Imp. Material consumption) |
3. Stores person when he received (or) issues material he will enter movement type, material number and quantity. Accounts will be updated automatically based on account assignment to valuation class which is specified in material master.
Example:
Po1 Po1
Move type 101 Raw material 1
Material No àRM1 Qty: 100
Qty: 20 Kgs Rate – 5
Save Vendor – 1234
Movement type 101 – Debit BSX – 200121 àInventory raw materials – Qty in GRX
Rate as per PO = 100
Credit WRX – 150000 à GR/IR clearing.
1st rule:
In material master we specify valuation class:
Here RM1 & RM2 (Material master) is specify the valuation
Class 3000 RM local & 3001 RM imported respectively.
(2) For valuation class we assign G/L accounts based on the nature of transaction.
Here valuation class (3000 RM local & 3001 RM Imported)
Assign G/L accounts Inv. Postings (BSX) ( 200121 – Inventory raw material local, 20012 – Inv. Raw material imported), GR/IR clearing. WRX (150000 – GR/IR clearing), 150001 (GR/IR clearing raw material imported)
Batch: Qty Rate Amount
1 - 100 10 1000
2 - 200 40 8000
------- --------
300 9000
1 - 10 10 100
-------
8900
+ 180
--------
9080
--------
Receipt:
a) Inv. Raw material local A/C Dr 1000 – BSX
To GR/IR clearing raw material local 1000 – WRX
Consumption:
b) Raw material consumption local Dr 100 – GBBVBR
To Raw material local 100 – BSX
Price difference: Inv. Verification
GR/IR clearing raw material 1000
Inv. Raw material local 200
To party 1200
Moving average:
Stock partly available
Qty Rate Amount
100 10 1000
200 40 8000
----- ----- --------
300 30 9000
Consumption 280 30 8400
----- --------
20 600
Price difference 40
----- -------
20 640
------ --------
a) Receipt:
Inv. Raw material local Dr 1000 – BSX
To GR/IR clearing raw material 1000 – WRX
b) Consumption:
Raw material consumption local Dr 8400 – GBBVBR
To Inv. Raw material 8400 – BSX
c) Inv. Verification:
GR/IR clearing raw material local 1000 – WRX
Price difference raw material 160 – Prd
Inv. Raw material 40 (20*2) – BSX
To party 1200 (from P.O)
The difference between batch method and moving average method
In batch method it checks with material No and Batch Number only.
Moving average - Stocks not available
Qty Rate Amount
100 10 1000
200 40 8000
------ ---- --------
300 30 9000
Consumption 300 30 9000
a) Receipt:
Inv. Raw material load Dr 1000 – BSX
To GR/IR clearing raw material 1000 – WRX
b) Consumption:
Raw material consumption local Dr 9000 – GBBVBR
To Inv. Raw material 9000 – BSX
c) Inv. Verification:
GR/IR clearing raw material 1000 – WRX
Price difference raw material 2000 – PRD
To party
To party
0 comments:
Post a Comment