Accounts Payable Journal Entries

11/10/13

Accounts Payable Journal Entries | SAP FICO Docs

Accounts Payable Journal Entries March 17, 2013

PURCHASE RELATED ACTIVITIES Accounting entries get generated at the time of GR/IR, and invoice verification. At the time of GR/IR, the following entry gets generated. Inventory a/c………….…………..Dr. xxx To GR/IR a/c……………………………..xxx On doing the Invoice verification, the following entry gets generated and the liability is booked. GR/IR a/c…………………………..Dr. xxx To Vendor a/c……………………………xxx At the time of invoice verification if there are differences between GR value and IR and if stock is not available the difference amount would go to price differences A/c. 1) PURCHASE – RAW MATERIAL sapfidocz.wordpress.com/2013/03/17/accounts-payable-journal-entries/

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11/10/13

Accounts Payable Journal Entries | SAP FICO Docs

At the time of Goods Receipt the following entry gets generated (Ex. with notional figures). For a P.O of Rs. 100(Basic 70 + Freight 10 ) (when freight is borne by the company) Inventory (Raw-material) a/c………………….Dr 80 To GR/IR Clearing a/c……………………………….70 To Freight clearing a/c………………………………10 On doing the Invoice Verification, the following entry gets generated. GR/IR Clearing a/c……..……………..Dr. 70 Freight Clearing a/c……………………Dr. 10 To Vendor a/c ……………………………….70 To Vendor a/c………….……………………10 2) PURCHASE – TRADED GOODS In case of traded goods, the entries would be as below: On receipt of the goods sapfidocz.wordpress.com/2013/03/17/accounts-payable-journal-entries/

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11/10/13

Accounts Payable Journal Entries | SAP FICO Docs

Inventory (Traded) a/c…………………………..Dr. xxx To GR/IR Clearing a/c………………………………….xxx On doing the Invoice Verification, the following entry is generated. GR/IR Clearing a/c……………………………Dr. xxx To Vendor a/c…………………………………………..xxx 3) PURCHASE – CONSUMABLES In case of Consumables, the entries would be as below: On receipt of the Consumables Inventory (Consumables) a/c…………………………..Dr. xxx To GR/IR Clearing a/c………………………………….xxx On doing the Invoice Verification, the following entry is generated. GR/IR Clearing a/c……………………………Dr. xxx To Vendor a/c…………………………………………..xxx sapfidocz.wordpress.com/2013/03/17/accounts-payable-journal-entries/

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11/10/13

Accounts Payable Journal Entries | SAP FICO Docs

4) PURCHASE – PACKING MATERIAL In case of Packing Material, the entries would be as below: On receipt of the Packing Material Inventory (Packing Material) a/c…………………………..Dr. xxx To GR/IR Clearing a/c………………………………….xxx On doing the Invoice Verification, the following entry is generated. GR/IR Clearing a/c……………………………Dr. xxx To Vendor a/c…………………………………………..xxx 5) IMPORT PURCHASES In case of Import Purchases, the process remains the same but for the additional charges, which are included in the cost of inventory. The same is processed in MM module. The following accounting entry gets generated on receipt of goods. sapfidocz.wordpress.com/2013/03/17/accounts-payable-journal-entries/

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11/10/13

Accounts Payable Journal Entries | SAP FICO Docs

Inventory a/c……………………………..Dr. xxx To GR/IR Clearing a/c………………………..xxx To Freight Clearing…………………………..xxx On doing the Invoice Verification, the following entry gets generated. GR/IR Clearing a/c………………………Dr. xxx Freight Clearing a/c…………………….Dr. xxx To Vendor a/c…………………………………xxx To C&F Vendor……………………………….xxx 6) PURCHASE RETURNS The transactions related to purchase returns are processed in MM. The entries that get generated on processing such transactions are: GR/IR a/c…………………………………..Dr. xxx To Inventory a/c……………………………….xxx sapfidocz.wordpress.com/2013/03/17/accounts-payable-journal-entries/

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11/10/13

Accounts Payable Journal Entries | SAP FICO Docs

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