Download - Mm Process Entries
-
8/2/2019 Mm Process Entries
1/43
What should be my accounting entry in procurement?
For Domestic Procurement of Raw Material
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr.
Cenvat Clearing Cr.
During Invoice Verification
Cenvat Clearing Dr.
GR/IR Clearing Dr.
Vendor Payable Cr.
For Domestic procurement of Capital Goods
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr. (50%)
Cenvat On-hold Dr. (50%)
Cenvat Clearing Cr.
During Invoice Verification
Cenvat Clearing Dr.
GR/IR Clearing Dr.Vendor Payable Cr
Subsequent of Capital Goods
Cenvat Account Dr. (50%)
Cenvat On-hold Cr. (50%)
For Import Procurement of Raw Material
During Customs Duty Clearing invoice
Custom Clearing Dr.
Custom Payable Cr.
During GR
Material Stock Dr.
GR/IR clearing Cr.
During Excise Invoice Credit
Cenvat Account Dr.
Custom Clearing Cr.
-
8/2/2019 Mm Process Entries
2/43
During Invoice Verification
GR/IR Clearing Dr.
Vendor Payable Cr.
For Excise Duty Credit of Raw Material without PO
Cenvat Account Dr.
Cenvat Clearing Cr.
For Excise Duty Reversal through Excise JV
Cenvat Clearing Dr.Cenvat Account Cr.
What should be my accounting entry when the goods are issued through MM and excise invoiceis created (J1IS & J1IV)?
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
Note: Cenvat Suspense Account should be cleared appropriately using FI JV's.
What should be my accounting entry in subcontracting reversal / Recredit?
For Subcontracting Challan Reversal
Cenvat Reversal Dr.
Cenvat Account Cr.
For Subcontracting Challan Recredit
Cenvat Account Dr.
-
8/2/2019 Mm Process Entries
3/43
Cenvat Reversal Cr.
What should be my accounting entry in SD ?
For Factory Sale
During Billing Document
Customer Account Dr.
Sales Account Cr.
Cenvat Suspense Account Cr.
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
For Stock Transfer through SD
No Accounting entries for Performa Billing Document
During Excise Invoice Creation
Cenvat Suspense Account Dr.
Cenvat payable Cr.
For TR6C Challan
PLA Account Dr.
PLA on hold Account Cr.
During Fortnightly Utilization
Cenvat payable Dr.
Cenvat Account Cr.
PLA Account Cr.
Note: Cenvat Suspense Account should be cleared appropriately using FI JV's.
-
8/2/2019 Mm Process Entries
4/43
Initial stock entry:Movement type - 561(Receipt per initial entry of stock balances into unrestricted-use)TCODE - MB1CFI Document Type - WA
89 Raw material BSX S91 Initial Stock entry GBB BSA H
Physical inventory differences:Movement type 702 (Goods Issue Physical Inventory difference) this is triggered because of themovement type 102, which is given while calculating the difference INV: for expenditure/income frominventory differencesTCODE - MI07 (MI01 & MI04)FI Document Type - WI
81 Inventory differences G/L GBB INV S
99 Raw material BSX H
Goods Issue to Production Order:Movement type - 261 (Consumption for order from warehouse) VBR: for internal goods issues (forexample, for cost center)
TCODE - MB1AFI Document Type - WA: Goods Issue
81 Raw material Consumption GBB VBR S
99 Raw material BSX H
In case Movement type given is 201(Consumption for cost center from warehouse), at the time of MB1Asystem asks for the COST CENTER & GENERAL LEDGER. Here, the account determination happensdirectly from MB1A and not from the OBYC. Accounting entry will be same as above except the 'Rawmaterial Consumption'; it triggers whatever the GL given.Goods Issue / Delivery: SDMovement type - 601 (Customer delivery) VAX: for goods issues for sales orders without accountassignment object (the account is not a cost element)TCODE - VL02FI Document Type - WL: Goods Issue/Delivery
81 Mater. consumed/tradinggoods without costelementCOGS
GBB VAX S
99 Finished Goods BSX H
Goods Receipt: FG PPMovement type - 101 (Goods Receipt) GBB-AUF: for goods receipts for orders (without accountassignment) and for order settlement if AUA is not maintainedTCODE - MB31 Goods Receipt for Production OrderFI Document Type - WE: Goods Receipt
89 Finished Goods BSX S
91 Inventory change factoryoutput COGP
GBB AUF H
Goods Receipt: RM MM
Movement type - 101 (Goods Receipt)TCODE - MIGO Goods Receipt for Purchase OrderFI Document Type - WE: Goods Receipt
89 Raw Material BSX S
96 GR / IR Clearing account WRX H
Invoice Receipt: RM MMMovement type - 101 (Goods Receipt)TCODE - MIGO Goods Receipt for Purchase OrderFI Document Type - WE: Goods Receipt
-
8/2/2019 Mm Process Entries
5/43
86 GR / IR Clearing account WRX S
31 Vendor account KBS H
KBS is without any account determination and posting keys are 81 & 91. It triggers when there is nomaterial is assigned in the PO at that time.WRX In case of any posting required without material, account determination should be withoutvaluation class.
If price changed at the time of IR, then based on the difference in the material price system postsamounts to particular material account and not to the price difference account (this is related to thematerials with price control V).Material Valuation: MMMovement type -TCODE - MR22 Dr/Cr Material material valuation (below given calculation) & MR21: Price Change(Difference amount posts to the material account and calculation is ((New price Old price) * Quantity)FI Document Type - PR: Price change Below entry in case of price increase
89 Raw material BSX S
93 Material Valuation UMB H
Calculation - {Current Stock Value + (Amount given in MR22 / Quantity given in MR22 * Cr. Quantity)}Billing Document: SDTCODE - VF01 Billing - VF11 Cancel Billing
FI Document Type - RV: Billing document transfer - RW: Reversal of billing01 Customer account BSX S
50 Sales Revenue account UMB H
-
8/2/2019 Mm Process Entries
6/43
InvoiceVerification for
ForeignVendorOn
receipt of vendorbill the following
entry will bepassed:GR/IR A
-
8/2/2019 Mm Process Entries
7/43
ccount DRVendor Account CRIn
voiceVerification for
CustomvendorOnreceipt of
Vendor bill the
-
8/2/2019 Mm Process Entries
8/43
follo wing entrywill be
passed:1) RG 23A/RG 23C Part
2 A/c(CVD) A/c DRCenvat Clearing A
/c CR2) G/R I/R
-
8/2/2019 Mm Process Entries
9/43
A/c DRCenvat Clearing A/c DRVendor A/c CR3)Cost of MaterialA/c DRVendor A
/c (Customs) CRInvoice
Verification for
-
8/2/2019 Mm Process Entries
10/43
Freight /Clearing
AgentCost of Material A/c DRVe
ndor A/c(Clearing
Agent) CRInvoic
e Verification for
-
8/2/2019 Mm Process Entries
11/43
OctroiExpensesCost of Material DRVendor A/c (Octroi)
CRTDS (WorkContract Tax)
for Service
Orders shall be
-
8/2/2019 Mm Process Entries
12/43
calculated anddeductedaccordi
ngly.Thefollowing entrywill be passed
on billpassing:Expens
es Account DRV
-
8/2/2019 Mm Process Entries
13/43
endor AccountCRTDS AccountCRThe material
shall be returnedto the vendor
using theReturnto vendor
movement type
-
8/2/2019 Mm Process Entries
14/43
in SAPCreatinga ReturnPOThese
transactions willbe processed in
the MMmodule.The
accounting
-
8/2/2019 Mm Process Entries
15/43
entries will be:Returns after
GRNGR/IR A/cDrStock A/c CrThe accounting inrespect of debit /
credit memos
for FI vendors,
-
8/2/2019 Mm Process Entries
16/43
the processwillbe similar tothat of invoice
processing. Theaccounting
entrieswill be:On issue
of debit note
-
8/2/2019 Mm Process Entries
17/43
Vendor AccountDRExpenses Ac
count CRInrespect of importvendor - capitalgoods exchangedifferences are
to beaccounted
-
8/2/2019 Mm Process Entries
18/43
manuallythrough a
Journal Voucherfor
capitalization.Exchange rate
differences will
be accounted at
-
8/2/2019 Mm Process Entries
19/43
HO. An exampleof theaccounting
entry in thiscase shall
be:Invoice entry@ 40 INR: 1
USDAsset / Exp
ense A/c DR 10
-
8/2/2019 Mm Process Entries
20/43
0Vendor A/c CR100Payment
Entry @ 41 INR:1
USDVendor A/cDR 100Bank A/cCR 110Exchan
ge rate loss Cap
-
8/2/2019 Mm Process Entries
21/43
ital A/c DR 10Asset A/c DR 10Exchange rate lossCapital A/c CR10A new G/L
account shall becreated for the
special G/L
-
8/2/2019 Mm Process Entries
22/43
transactions.Theaccounting entryfor making thedown payment
shallbe:Advance to s
upplier
account DebitBa
-
8/2/2019 Mm Process Entries
23/43
nk A/c CreditWhen the invoice is
booked thefollowing entry ispassedGR/IR account DebitVendor account Credi
tClearing of
-
8/2/2019 Mm Process Entries
24/43
Invoice againstDown
PaymentVendorA/c DebitVendo
r down paymentaccount CreditWherever, TDS is
applicable, the
-
8/2/2019 Mm Process Entries
25/43
TDS will bededucted at thetime of down-
payment to thevendor.DownPayment for
Capital
(tangible)
-
8/2/2019 Mm Process Entries
26/43
AssetsDownpayment tovendors for
capitalacquisitions is to
be reportedseparately inthe
Balance Sheet
-
8/2/2019 Mm Process Entries
27/43
under thehead Capital
Workin Progress. He
ncedownpayment
for capital goods
would be
-
8/2/2019 Mm Process Entries
28/43
tracked througha separate
specialgeneralledgerindicator.The
procedure to befollowed
is:Definition of
-
8/2/2019 Mm Process Entries
29/43
alternativereconciliationaccounts for
AccountsPayable forpostingdown
payments made
for Capital
-
8/2/2019 Mm Process Entries
30/43
assetsClearingthe down
payment inAccounts
Payable with theclosing invoice.
A new G/Laccount shall be
-
8/2/2019 Mm Process Entries
31/43
created for thespecial G/L
transactions.Theaccounting entryfor making thedown paymentshall be:Vendor
Advance for
-
8/2/2019 Mm Process Entries
32/43
Capital GoodsAccount
DebitBank A/c CreditWhen the
invoice isbooked the
following entry is
passedAsset A/
-
8/2/2019 Mm Process Entries
33/43
c /Asset WIP DebitVendor A/c Cred
itClearing ofInvoice against
DownPaymentVendor
A/c DebitVendo
-
8/2/2019 Mm Process Entries
34/43
r Advance forCapital Goods
AccountCreditThe
Following arethe TDS Rates
(to be confirmed
with the recent
-
8/2/2019 Mm Process Entries
35/43
changes)Particulars Tax Rate
Surcharge RateTotalContractors 194 C 2% 5%2.10%Advertisin
g 194 C 1%
5% 1.05%Prof.
-
8/2/2019 Mm Process Entries
36/43
Fees 194 J5% 5%
5.25%RentOthers
194 I
15% 5%15.75%Rent
Company 194
I 20% 5%
-
8/2/2019 Mm Process Entries
37/43
21%Commission
194H 5%5%
5.25%Interest -Others 194A 10% 5%
10.50%Interest
Company
-
8/2/2019 Mm Process Entries
38/43
194 A 20% 5%21%Special
ConcessionalTaxWorksContract
TaxSECURITYDEPOSITS
/EARNEST
-
8/2/2019 Mm Process Entries
39/43
MONEYDEPOSIT
RECEIVEDFROMVENDORSBank A/c DRSecurity DepositVendor CREMD
to give the age
-
8/2/2019 Mm Process Entries
40/43
so as to enablethe same to betransferred to
unclaimedEMDaccount.PAYME
NT OF TOURADVANCE
DOMESTIC
-
8/2/2019 Mm Process Entries
41/43
TOURSEmployee Advances willbe paid by the
AccountsDepartment unit
wise basedonthe requisition
or
-
8/2/2019 Mm Process Entries
42/43
recommendation of the
respectivedepartmental
head.EmployeeTravel
Advance A/c DR
-
8/2/2019 Mm Process Entries
43/43
Cash / Bank Account CR