Accounts Payable Journal Entries

11/10/13

Accounts Payable Jour nal Entr ies | SAP FICO Docs

Accounts Payable Journal Entries March 17, 2013

P URCHASE RELATED ACTI AC TIVIT VITIES IES

Accounti Accounting ng entries get generated at the time of GR/IR, and invoice verification. At the time of GR/IR, the following fol lowing entry gets generated. generated. Inventory a/c………….…………..Dr. xxx To GR/IR GR/ IR a/c……………………………..xxx On doing the Invoice verification, the following entry gets generated and and the liability li ability is booked. boo ked. GR/IR a/c…………………………..Dr. xxx To Vendor a/c……………………………x a/c……………………………xxx xx At the time of invoice verification if there are differences  between  between GR value value and and IR IR and and if stock stock is not available available the difference amount would go to price differences A/c. 1) PURCHASE – RAW MATERIAL

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) P URCHASE – TRADED GOODS

In case of traded goods, the entries would be as below: On receipt of the goods

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

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.

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) P URCHASE 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

11/10/13

Accounts Payable Journal Entries | SAP FICO Docs Share this: