Inventory Accounting Entries All the Inventory transactions will look for the valuation class and the

corresponding G.L. Accounts and post the values in the G.L accounts. For Example: DURING GOODS RECEIPT Stock Account Dr G/R I/R Account Cr Freight Clearing account Cr Other expenses payable Cr DURING INVOICE VERIFICATION G/R I/R Account Dr Vendor - Cr When the Goods are issued to the Production Order the following transactions takes place: Consumption of Raw Materials Dr Stock A/c - Cr When the Goods are received from the Production Order the followingtransactions takes place: Inventory A/c Dr Cost of Goods Produced Cr Price difference - Dr/Cr (depending on the difference between standard cost and actual cost) When the Goods are dispatched to customer through delivery the followingtransactions takes place: Cost of Goods Sold Dr Inventory A/c - Cr When the Goods are issued to a Cost Center or charged off againstexpenses the following transactions takes place: Repairs and Maintenance Dr Inventory A/c - Cr

INTRACOMPANY STO:
_If it is one step: _ At Supp.Plant: Stock Acc. BSX is Credited (-) At. Rec.Plant : Stock Acc. BSX is Debited (+) If you maintain Std. price at Rec. Plant and if there is any Price Diff., then Price Diff. Acc.( AUM) will be triggered.

_If it is two step: _ At Supplying .Plant....While doing PGI..: Stock acc. BSX is Credited (-) Cost of Goods sold Acc.( VAY ) is Debited(+)

At. Receiving Plant While doing GR: Stock Acc. BSX is Debited(+) GR/IR Clearing Acc is Credited (-) If you maintain Std. Price and if there is any price Diff. then Price Diff. Acc ( AUM) will be triggered.

INTER COMPANY:
1. Intercompany Stock transfer In the case of receiving company code Stock Dr. Intercompany GL CR. In the case of sending company code Intercompany GL Dr. Stock Cr. 2. Intercompany Sales In the case of Billing company code Intercompany GL Dr. Sales CR. Other company code Expenses Dr. Intercompany GL CR.

The accompanying acconting entries for transactions that are posted in SD are as follows: 1. Billing document type F2 - Billing company code to customer Debit End customer Credit Revenue

Debit cost of goods sold Credit Inter-company account The cost of goods sold in the billing document is posted through an internal IDOC. 2. Billing document type IV(while creating the billing doc use the same delivery document. there will be 2 billing docs for the same delivery) Debit Intercompany customer Credit Revenue The Idoc settings are explained in the IDES documentation in detail. If I remember correctly it will be under special sales processes.

THIRD PARTY:

1. When Sales Order is created. No FI Entry 2. When PR is Created No FI Entry 3. When ME21N is done No FI Entry 4. MIGO (GBB-VAY) COGS - 3rd Party A/c - Dr (WRX) GR/IR Clearing A/c - Cr 5. MIRO Vendor Account - Cr GR/IR Clearing A/c - Dr 6. VF01 Customer Account - Dr Sales Revenue A/c - Cr