SAP SD Sales and Distribution Accounting Entries INVOICE GENERATION IN SAP Invoices will be generated at the same time.

SAP accounting entries for the sale of goods despatched will flow from the SAP Sales invoice generated in SAP Sales and Distribution module -SD. Following SAP accounting entries shall be posted / passed:

Customer Account Debit Revenue (Sales) Account Credit Excise Duty Payable Credit ( in case of India) Sales Tax Payable (local or central) Credit ( Tax in any country )

FI financial accounting document, will be generated automatically in the background, the SD invoice number shall be captured. However as per the current accounting procedure the accounting entry posted is as below :-

Customer Account Debit Revenue Credit Excise Duty Billed Credit Sales Tax Payable (local or central) Credit

EXPORT SALES

You may configure SAP to deal with export business. SAP system will be designed to handle export business. The accounting entry is posted as below:

Export Customer Account Debit Revenue (Exports) -Sales Credit

The realisation of funds from export sales will be directly Credit to the respective bank. The SAP accounting entries will be posted as below: Bank Debit Export Customer Credit Exchange Fluctuation Debit/ Credit

Exchange fluctuation will arise due to difference in foreign exchange rate at the time of invoicing and at the time of amount realised from bank.

If there is any rebate/ discount or Credit note to be given to customer, following accounting entries to be posted.

Rebates/Discounts account Debit Customer account Credit

DEBIT MEMOS

If there is any situation when Debit Memos shall be issued in case of price difference, sale tax difference and interest on period and overdue payments. Accounting entries for two possible scenarios are as follows:

Price Under charged: Customer Account Debit. Revenue Account Credit. Sales tax payable Account Credit.

If Sales tax undercharged

Customer Account Debit. Sales tax adjustment Account Credit.

If Interest on delayed payments period and other charges

Customer Account Account Debit. Interest Others Account Credit.

SALE OF SCRAP in SAP

The sale of scrap (non-stock) shall be mapped as a direct manual FI entry. The customer will be debited as a FI customer. No Logistics module will be involved in the process. A FI Invoice will be prepared for the sale of scrap with the following entries:

Customer account Debit Sale of Scrap account Credit Excise Duty Payable account Credit