Cash Sales

Implementation Considerations
Cash sales is an order type for when the customer orders, picks up and pays for the goods immediately. The delivery is processed as soon as the order has been entered. A cash invoice can be printed immediately from the order and billing is related to the order. Receivables do not occur for the customer as they do for rush or standard orders, because the invoice amount is posted directly to a cash account.

Process Flow
In the standard system, sales document type BV is saved for cash sales with immediate delivery type BV. When the sales employee creates a cash sale, the system automatically proposes the current date as the date for delivery and billing. Once the order has been posted, a delivery with type BV is created immediately in the background and the system prints a document that is used as an invoice for the customer. The invoice papers are controlled with output type RD03, contained in the output determination procedure for order type BV. If the customer has already received the goods, this delivery should not be relevant for picking. If the customer is to pick the goods up from a warehouse, the delivery should be relevant for picking. If the goods are to be sent, this can be processed by maintaining the delivery in the usual way. The system automatically creates a resource-related billing index which updates the billing due list. Billing document BV is created as the system processes the billing due list, but an invoice is not printed.

Once the customer has received the goods and is satisfied with them, the transaction is considered to be complete. We recommend that you post goods issue in the background using a program designed specifically for this purpose. You can then bill the transaction.

The cash sale can only be billed if the order quantity is the same as the goods issue quantity. If this is not the case, you need to adjust the cash sale document so that the delivered quantity and the quantity to be billed match. You use an order-related collective billing process to bill the cash sale, but an invoice is not printed. The sales order number is used as the reference for the accounting document, created in Financial Accounting.

Dealing with Problems and Complaints

If the transaction does not run smoothly, manual intervention is necessary. For example, if the required quantity of goods is not found in the warehouse, you need to adjust the delivery quantity. Equally, if the customer is not prepared to pay the agreed price, because, for example, the goods are scratched, you can change the price in the cash sale document.

In extreme cases, you can delete the entire transaction, starting with the delivery. If the delivery is damaged before it is picked up but after it is paid for and there is no replacement stock, you can initiate a subsequent delivery. If you make changes to the cash sale, you can issue a new cash sale invoice using the repeat printout function.

Eg:

Order related billing (PGI not required)

PGI could be done later manually

For the GL account assignment for EVV account key it is taken from the Account key access in revenue account determination

Output determination

Requirement 14 resends the invoice to print each time price is changed in sales order.

Billing document
The system creates the billing document once the invoice has been printed. The billing document has the following attributes: No output determination procedure is assigned to the billing document type, since the invoice has already been printed. Since prices in the billing document must be identical to those on the invoice printout, the system does not repeat pricing during billing. Choose pricing type E in Customizing (Maintain OrderRelated Billing Document Type Determination Customizing activity).

When defining the item category, you can use the Pricing field to define when pricing is to be performed for an order. Postings are made to a G/L account in Financial Accounting (clearing account) and not to a subledger account (customer account). You must therefore define an account key for G/L account determination when you define the billing document type for cash billing. A separate cancellation billing type is defined for the billing document type.

You should create orders for cash sales with the item category that has been defined for this item category, since you cannot change the item category in the order once you have assigned it here.

Account key for cash allocation

account key that causes the system to post to a G/L account rather than to a receivables account. You can enter G/L accounts for the key entered in account assignment. (Account determination can be found in Basic Functions).

Use

You can use this to allow cash transactions to be carried out directly for the customer rather than receivables being created.

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Second method for cash account determination

Cash Account determination procedure:

The revenue account determination for determination of GL accounts for various pricing conditions need to be maintained as usual. Apart from maintaining the revenue account determination, additionally ,we need to maintain the cash account determination in case of cash sales

Testing: Cash sale created, cash sale delivery automatically created. Cash sale invoice BV created w.r.t cash sale order

Revenue account GLS determined

Cash account GLs determined

Just for understanding: In case of normal revenue account determination for normal sales and invoice the customer account will be listed in the accounting document against which the posting for reconciliation would be done

This GL account comes from customer master :-company code data reconciliation account

Reconciliation account determination procedure However if a different reconcialition GL account (not from customer master) needs to be determined based on a set of conditions and criteria, then we use Reconciliation account determination procedure

Revenue Recognition (for service orders and invoices, and deferred revenue accounting)

Maintain Account Determination

In this IMG activity, you configure account determination for revenue recognition.

Determining the revenue account

The revenue account is maintained in the first column.

Determining the deferred revenue account

The deferred revenue account is a special general ledger account that is used to determine the revenue that is billed but not yet recognised.

You must enter the number of the revenue recognition account in the second column.

Determining the unbilled receivables account

The account for unbilled receivables is a special general ledger account that is used to determine the revenues that have been recognised but not yet billed.

Set Revenue Recognition For Item Categories

In this step you determine the revenue recognition methods for the required item categories and also determine the accrual start date. Notes Accrual start date The accrual start date determines the start of the period when revenues should be implemented. A Proposal based on contract start date If you choose this option, revenue recognition proposes the sales contract date for an item as the accrual start date. B Proposal based on the start date for the billing plan If you choose this option, revenue recognition proposes one of the following dates as the accrual start date: Milestone billing plan The billing date for the first milestone Periodic billing plan The system uses the earlier of the following dates: Billing plan start date Start of the first settlement period