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  • SAP Inventory Accounting Entries

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    Akhaya Kumar
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    The document outlines the key SAP inventory accounting entries for various transactions. When goods are received, the inventory account is debited and the goods receipt account is credited. When goods are issued for production, the consumption of raw materials is debited and inventory is credited. After production, finished goods inventory is debited and cost of goods produced is credited. When goods are dispatched to customers, cost of goods sold is debited and finished goods inventory is credited. Stock transfers between plants result in debits and credits to the respective plant stock accounts. Physical inventory adjustments are accounted for by debiting or crediting the inventory gain/loss account.

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    The document outlines the key SAP inventory accounting entries for various transactions. When goods are received, the inventory account is debited and the goods receipt account is credited. When goods are issued for production, the consumption of raw materials is debited and inventory is credited. After production, finished goods inventory is debited and cost of goods produced is credited. When goods are dispatched to customers, cost of goods sold is debited and finished goods inventory is credited. Stock transfers between plants result in debits and credits to the respective plant stock accounts. Physical inventory adjustments are accounted for by debiting or crediting the inventory gain/loss account.

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    4K views3 pages

    SAP Inventory Accounting Entries

    Uploaded by

    Akhaya Kumar
    The document outlines the key SAP inventory accounting entries for various transactions. When goods are received, the inventory account is debited and the goods receipt account is credited. When goods are issued for production, the consumption of raw materials is debited and inventory is credited. After production, finished goods inventory is debited and cost of goods produced is credited. When goods are dispatched to customers, cost of goods sold is debited and finished goods inventory is credited. Stock transfers between plants result in debits and credits to the respective plant stock accounts. Physical inventory adjustments are accounted for by debiting or crediting the inventory gain/loss account.

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    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    SAP Inventory Accounting Entries are given below At the time of Goods Receipt of inventory in SAPfollowing SAP accounting

    entry will be posted Raw Material (Inventory Account) Debit G/R I/R Account Credit Freight Clearing Account Credit Other expenses payable Credit (If any) At the time of three ways matching in SAP or SAP Invoice Verification the accounting entries will be passed like G/R I/R Account Debit Vendor Credit At the time of Goods are issued to the Production Order the following accounting entry will be posted: Consumption of Raw Materials Debit Raw material Inventory A/c Credit After production Goods are received from the Production Order the following SAP accounting entry posted Finished goods -Inventory A/c Debit Cost of Goods Produced Credit Price difference Dr/Cr if any (SAP Price difference depends on difference between SAP standard cost and actual cost in) If Work in Progress is calculated the following transaction takes place: Work in Progress A/c Debit Change WIP A/c Credit At the time Goods are dispatched to customer through delivery the following SAP inventory accounting entries posted:

    Cost of Goods Sold Dr (Amount is depend on value of inventory at plant) Finished goods- Inventory A/c Cr If the Goods are issued to a Cost Centre or charged against any expenses the following accounting transaction posted: Repairs and Maintenance Debit Inventory A/c Credit At he time of Goods are stock transferred from one plant to another plant, the following SAP accounting transactions posted: Stock A/c Dr (Receiving location) Stock A/c Cr (Sending location) Price difference Debit or credit (This is mainly due to any difference between the standard costs or WAC between the two plants) Some time inventory is revalue due to reduction in Net realisable value (NRV) or credit from vendor the stocks are revalued, the following SAP accounting entry transactions posted: Stock A/c Debit / Credit Inventory Revaluation Account Credit / Debit After the physical stock count of stock or inventory Shortages/excesses on authorizations shall be adjusted using the physical inventory count transaction. If an Excess following SAP accounting entry to be posted Gain or Loss on Inventory account Debit (P & L line GL account) Inventory or stock account credit If there is shortage than following accounting transaction to be posted: Inventory or stock account Debit Gain or Loss on Inventory account Credit (P & L line GL account)

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