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Table of Contents
Introduction ..................................................................................................................................... 3 Non-Based Goods Returns Transactions .................................................................................... 4 Non-Based Goods Return ............................................................................................ 4 Non-Based A/P Credit Memo ....................................................................................... 5 A/P Credit Memo Fully Based on Goods Returns ........................................................ 6 Enhancements in Standard Costing............................................................................................. 8 Small Values Handling ................................................................................................. 8 Enhancements in Moving Average Costing .............................................................................. 13 Deliveries Based on Sales Returns ............................................................................ 13 GRPOs Based on Purchase Returns ......................................................................... 14 Enhancements in FIFO Item Transactions................................................................................. 16 Special Cases ............................................................................................................. 22 Enhancements in Purchase Accounting.................................................................................... 23 Purchase Accounting with Perpetual Inventory .......................................................... 23 Purchase Accounting with Non-Perpetual Inventory .................................................. 30 Copyrights, Trademarks, and Disclaimers ................................................................................ 34
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Introduction
This document describes enhancements implemented in inventory related functions in SAP Business One 8.8. The enhancements were implemented in the following features: Transactions created by non-based goods receipts Enhancements in Standard Costing Enhancements in Moving Average Costing Purchase Accounting Transactions involving FIFO items Reflection of standard item transactions in Cost of Goods Sold and Inventory accounts
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In the following table you may find comparison of the accounts and values involved in the transaction created by non-based Goods Return for Standard item in SAP Business One releases prior to 8.8 and SAP Business One 8.8: Account Inventory Account Allocation Account Expense Allocation Account Variance Account SAP Business One 8.8 Credited based on the actual item cost Debited based on actual item cost N/A N/A SAP Business One 2007 Credited based on the actual item cost Debited based on the row total in the Goods Return document Debited or credited by the freight charges in the document Debited or credited by the document value including freight charges minus the amount posted to the inventory account
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In the following table you may find comparison of the accounts and values involved in the transaction created by A/P Credit Memo that is fully based on Goods Return created for Standard item in SAP Business One releases prior to 8.8 and SAP Business One 8.8: Account Allocation Account SAP Business One 8.8 Credited by the amount posted to the account when the goods return was created. N/A Credited or debited by the document total including freight charges minus the amount posted to the inventory account (in the goods return) SAP Business One 2007 Credited by the amount posted to the account when the goods return was created. Credited by the document freight charges N/A
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In the following table you may find comparison of the accounts and values involved in the transaction created by A/P Credit Memo that is fully based on Goods Return created for FIFO item in SAP Business One releases prior to 8.8 and SAP Business One 8.8: Account Allocation Account SAP Business One 8.8 Credited by the amount posted to the account when the goods return was created. Credited or debited by the document total including freight charges minus the amount posted to the inventory account (in the goods return) Credited or debited by the document total including freight charges minus the amount posted to the inventory account (in the goods return) SAP Business One 2007 Credited by the amount posted to the account when the goods return was created. N/A
N/A
Note Since in SAP Business One 8.8 the journal entry created by Goods Return is taking into account the current value of the item, and not the price entered in the document, the above described behavior applies whether the item price is manually changed in the A/P Credit Memo after basing it on the Goods Return or not.
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Item quantity turns zero but inventory value remains positive. Multiple Return documents based on a single Delivery document brings the open quantity of the delivery to zero, but the Cost of Goods Sold account balance is not zeroed accordingly.
Item cost is changed after a delivery is created and before a return based on that delivery is added
In this example, the balance of the Cost of Goods Sold account is debit 0.01, although the inventory value is zero.
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In SAP Business One 8.8 the inventory value is calculated as the sum of the value of all transactions. The system recognizes if an outbound transaction brings the item quantity to zero, in such case, the inventory value of this item turns zero as well. The scenario demonstrated in the above example is handled in SAP Business One 8.8 as follows: # 1 2 3 4 Doc. GRPO Goods Return Goods Return Goods Return Quantity 3 -1 -1 -1 Cost 3.3333 3.3333 3.3333 3.3333 Transaction Value 10.00 -3.33 -3.33 -3.34 Cumulative Quantity 3 2 1 0 Cumulative Value 10.00 6.67 3.34 0.00
With the last goods return, the Allocation account is debited with 3.34, and the Inventory account is credited accordingly. Multiple returns based on a delivery brings the open quantity of the delivery to zero, but the Cost of Goods Sold account balance is not zeroed accordingly in previous SAP Business One releases when a delivery for quantity greater than one is partially drowned into returns several times, until the open quantity in the delivery turns zero, the Cost of Goods Sold account is not zeroed accordingly. SAP Business One 8.8 recognizes when the returned quantity brings the open quantity of the delivery to zero, and the transaction resulting from the return document handles any small values that might cause inconsistency between the open quantity of the delivery and the balance of the Cost of Goods Sold account. Example The following table demonstrates the system behavior in SAP Business One releases prior to SAP Business One 8.8: Doc. Delivery Return #1 Return #2 Return #3 Quantity 3 1 1 1 Item Cost 3.33 3.33 3.33 3.33 Debit COGS Acct. 10.00 Inventory Acct. 3.33 Inventory Acct. 3.33 Inventory Acct. 3.33 Credit Inventory Acct. 10.00 COGS Acct. 3.33 COGS Acct. 3.33 COGS Acct. 3.33
Open Quantity = 0
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SAP Business One 8.8 recognizes that return no. 3 zeros the open quantity in the delivery, and therefore the transaction created by return no. 3 clears any small differences from the Cost of Goods Sold account: Doc. Delivery Return #1 Return #2 Return #3 = Last Return Quantity 3 1 1 1 Item Cost 3.33 3.33 3.33 3.33 Debit COGS Acct. 10.00 Inventory Acct. 3.33 Inventory Acct. 3.33 Inventory Acct. 3.33 Credit Inventory Acct. 10.00 COGS Acct. 3.33 COGS Acct. 3.33 COGS Acct. 3.34
Open Quantity = 0
When posting Inventory Revaluation transaction of Price Change type to a standard item and then creating a return based on delivery, the item cost in the target document might be different from the item cost in the base document SAP Business One handles this scenario, while considering the different inventory levels of the item before the return is created. The following examples demonstrate the behavior in previous SAP Business One releases and the enhanced behavior implemented in SAP Business One 8.8, according to the Available quantity status: Example 1 This example demonstrates the scenario where the Available quantity of the standard item is positive at the time the Return document is added: 1. Goods Receipt PO for Quantity = 10 and Unit Price = 15 is posted for standard item (it brings the Available quantity of the item to 10). 2. Delivery for Quantity = 6 is added (Available quantity turns 4) 3. Inventory Revaluation transaction of Price Change type for New Cost = 16 is posted. 4. Return fully based on the delivery created in step 2 is added. In previous releases of SAP Business One, the return created in step 4 resulted with the following journal entry: Account Sales Returns Account Cost of Goods Sold Debit 16*6 = 96 (= New Cost*Quantity) 16*6 = 96 (= New Cost*Quantity) Credit
This transaction does not reflect the item cost at the time the base document was created. In SAP Business One 8.8 the transaction created by the return added in step 4 reflects the item cost used at the time the delivery (that is the base document) was created: Account Sales Returns Account Variance Account Cost of Goods Sold Debit 16*6 = 96 (= New Cost*Quantity) 96-90 = 6 (=Sales Returns Cost of Goods Sold) 15*6 = 90 (= Item cost from base document*Quantity) Credit
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Example 2 This example demonstrates the scenario where the Available quantity of the standard item is negative and will remain negative or turn zero once the return is added: 1. Goods Receipt PO for Quantity = 10 and Unit Price = 15 is posted for standard item (it brings the Available quantity of the item to 10). 2. Delivery for Quantity = 6 is added (Available quantity turns 4) 3. Inventory Revaluation transaction of Price Change type for New Cost = 16 is posted. 4. Delivery for Quantity = 25 is created (Available quantity turns -21) 5. Return fully based on the delivery created in step 2 is added (Available quantity turns -15) In previous releases of SAP Business One, the return created in step 5 resulted with the following journal entry: Account Sales Returns Account Cost of Goods Sold Debit 16*6 = 96 (= New Cost*Quantity) 16*6 = 96 (= New Cost*Quantity) Credit
This transaction does not reflect the item cost at the time the base document was created. In SAP Business One 8.8 the transaction created by the return added in step 5 reflects the item cost used at the time the delivery (that is the base document) was created and the inventory level of the item: Account Sales Returns Account Negative Inventory Adj. Acct Cost of Goods Sold Example 3 This example demonstrates the scenario where the Available quantity of the standard item is negative before a return is added and will turn positive once the return is added: 1. Goods Receipt PO for Quantity = 10 and Unit Price = 15 is posted for standard item (it brings the Available quantity of the item to 10). 2. Delivery for Quantity = 6 is added (Available quantity turns 4) 3. Inventory Revaluation transaction of Price Change type for New Cost = 16 is posted. 4. Delivery for Quantity = 5 is created (Available quantity turns -1) 5. Return fully based on the delivery created in step 2 is added (Available quantity turns 5) Debit 16*6 = 96 (= New Cost*Quantity) 96-90 = 6 (=Sales Returns Cost of Goods Sold) 15*6 = 90 (= Item cost from base document*Quantity) Credit
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In previous releases of SAP Business One, the return created in step 5 resulted with the following journal entry: Account Sales Returns Account Cost of Goods Sold Debit 16*6 = 96 (= New Cost*Quantity) 16*6 = 96 (= New Cost*Quantity) Credit
This transaction does not reflect the item cost at the time the base document was created. In SAP Business One 8.8 the transaction created by the return added in step 5 reflects the item cost used at the time the delivery (that is the base document) was created, and the inventory level of the item: Account Sales Returns Account Negative Inventory Adj. Acct Variance Account Debit 16*6 = 96 (= New Cost*Quantity) 1 = 16 15 (= Sales Returns for the quantity in negative zone Cost of Goods Sold in negative zone) 5 = 80-75 (= Sales Returns for the quantity in positive zone Cost of Goods Sold in positive zone 15*6 = 90 (= Item cost from base document*Quantity) Credit
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01 02 02 01
10 10 1 1
10 5 5 10
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The following descriptions demonstrate the enhanced behavior in SAP Business One 8.8: As the table below shows, the cost price used by the delivery document is copied from the cost price in the sales return on which the delivery is based. Doc. Warehouse Quantity Cost Transaction Value 100 50 5 5 Cumulative Quantity (Per Warehouse) 10 5 11 9 Cumulative Value (Per Warehouse) 100 50 55 95
01 02 02 01
10 10 1 1
10 5 5 5
If the quantity to be issued by the delivery equals the in-stock quantity in the issuing warehouse (warehouse 01 in this example), the current cost price is used instead of the cost price from the sales return. This behavior ensures that the stock value is updated to null when the in-stock quantity reaches zero.
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The following descriptions demonstrate the application behavior in SAP Business One releases prior to SAP Business One 8.8: As the table below shows, the cost price used in both the purchase return and GRPO #2 is the unit price you specified for the item in the purchase return document.
Quantity 10 1
Cost 5 40
Unit Price 5 40
Transaction Value 50 40
Cumulative Quantity 10 9
Cumulative Value 50 10
40
40
40
10
50
The following descriptions demonstrate the enhanced behavior in SAP Business One 8.8: As the table below shows, the cost price used in both the purchase return and GRPO #2 is the current cost price in the warehouse. Doc. GRPO #1 Purchase Return GRPO #2 (Based on Purchase Return) Quantity 10 1 1 Cost 5 5 5 Unit Price 5 40 40 Transaction Value 50 5 5 Cumulative Quantity 10 9 10 Cumulative Value 50 45 50
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The following examples demonstrate the behavior used in previous SAP Business One releases and the new behavior implemented in SAP Business One 8.8, in the most common scenarios. Example 1 This example demonstrates a return of a FIFO item from an old layer: Four FIFO layers were received and delivered as follows: Layer 1 2 3 Original Quantity 10 12 20 Open Layer Quantity 2 5 20 Unit Value 100 90 80 Total Open Value 200 450 1600
A return for six items was created based on a delivery created for layer no. 1. In SAP Business One releases earlier than SAP Business One 8.8, layer no. 4 is added: Layer 1 2 3 4 Original Quantity 10 12 20 6 Open Layer Quantity 2 5 20 6 Unit Value 100 90 80 100 Total Open Value 200 450 1600 600
Although the items returned in layer no. 4 are actually the oldest (originally from layer no. 1) they will be delivered last.
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In SAP Business One 8.8 this behavior is changed, and whenever a FIFO item is returned by based return or based A/R credit memo, the returned layer is added right before the original layer. Following the above example, here is the illustration of the return document according to the new behavior implemented in SAP Business One 8.8: Original Layer N/A 1 2 3 New Layer 1 2 3 4 Original Quantity 6 10 12 20 Open Layer Quantity 6 2 5 20 Unit Value 100 100 90 80 Total Open Value 600 200 450 1600
The next time the item is delivered, the layer of the returned items is delivered first, as these items are currently the oldest in the FIFO stack. For the above table, for example, the delivery sequence would then be:
...
i. ii. iii.
The returned layer: new layer 1 The original layer: new layer 2 Late layers: new layer 3 and new layer 4
The following table reflects the FIFO layer status after a delivery of 7 items in SAP Business One 8.8: Original Layer N/A 1 2 3 New Layer 1 2 3 4 Original Quantity 6 10 12 20 Open Layer Quantity 0 1 5 20 Unit Value 100 100 90 80 Total Open Value 0 100 450 1600
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Example 2 This example demonstrates the system behavior when FIFO layers are split. The following FIFO layers were created by goods receipt POs: Layer 1 2 3 4 Document GRPO GRPO GRPO GRPO Open Layer Quantity 16 7 12 20 Unit Value 100 95 90 80 Total Open Value 1600 665 1080 1600
You have performed the following actions for this FIFO item: i. ii. iii. iv. You created a delivery of 8 units of this item. You drew 6 units out of layer no.1 into an A/P invoice, and you changed the unit price from 100 to 110. You created a delivery of 12 units of this item. You created a return for the 8 units, based on the delivery in step 1.
The following descriptions demonstrate the behavior in SAP Business One releases prior to SAP Business One 8.8: In step 2, you revalued some of the items of layer no. 1 and thus split this layer into two layers with different unit values new layer no.1 and new layer no.2. The following table shows the open layers after you performed step 2. Original Layer New Layer Open Layer Quantity Unit Value Total Open Value
1 N/A 2 3 4
1 2 3 4 5
2 6 7 12 20
100 110 95 90 80
I n step 3, you issued 12 units of the item in the following sequence: 1. Two (2) units from new layer no.1 with a unit value of 100 2. Six (6) units from new layer no.2, with a unit value of 110 3. Four (4) units from new layer no.3, with a unit value of 95 In step 4, you received a return from the delivery you issued in step 1, and the returned items were added as a new layer after all the other layers. The unit value of this layer is 100, because they were previously issued from layer no.1.
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The following table shows the open layers of this FIFO item after you have performed all the above operations in the application: Original Layer New Layer Open Layer Quantity Unit Value Total Open Value
1 N/A 2 3 4 5
1 2 3 4 5 6
0 0 3 12 20 8
The following descriptions demonstrate the behavior in SAP Business One 8.8: In step 2, you revalued some of the items of layer no. 1 and thus split this layer into two layers with different unit values new layer no.1 and new layer no.2. The following table shows the open layers after you performed step 2. Original Layer New Layer Open Layer Quantity Unit Value Total Open Value
N/A 1 2 3 4
1 2 3 4 5
6 2 7 12 20
110 100 95 90 80
In step 3, you issued 12 units of the item in the following sequence: 1. Six (6) units from new layer no.1 with the unit value of 110 2. Two (2) units from new layer no.2, with the unit value of 100 3. Four (4) units from new layer no.3, with the unit value of 95 In step 4, you received a return from the delivery you issued in step 1, and the returned items were added as a new layer before all the other layers. The unit value of this layer is 100, because they were previously issued from layer no.1.
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The following table shows the open layers of this FIFO item after you have performed all the above operations in the application:
Original Layer
New Layer
Unit Value
N/A 1 2 3 4 5
1 2 3 4 5 6
8 0 0 3 12 20
Example 3 This example illustrates how SAP Business One 8.8 handles inventory transfers created for FIFO items originating from an older layer. The following transactions have been posted for a FIFO item:
Document 1 2 3 4 5 6 GRPO GRPO AR Inv. Inv Trans AR CR based on row no.3 Delivery
From Whse
02 01
02
The delivery in row no. 6 issues the same item appearing in the inventory transfer in row no. 4, as this item is originally from the oldest layer created for the item.
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Example 4 This example demonstrates the enhancement in the formulation of inventory revaluation transaction of type inventory debit/credit. The following table demonstrates the behavior in previous SAP Business One releases:
Layer 1
Original Quantity 5
Unit Value 10
Comments
Inventory revaluation transaction of type Inventory Debit/Credit was created for quantity of 2 and debit/credit of 4. As a result: 1 2 5 5 0 5 10 10.8 0 54 The original layer is closed. A new layer is created for the original quantity. The unit value is calculated as follows: (50+4)/5 = 10.8
In SAP Business One 8.8 the scenario described above is handled as follows: Layer 1 Original Quantity 5 Open Layer Quantity 5 Unit Value 10 Total Open Value 50 Comments
An inventory revaluation transaction of type inventory debit/credit was created for a quantity of 2 and a debit/credit of 4. As a result: 1 5 3 10 30 The original layer is reduced by the revaluated quantity. A new layer is created for the revaluated quantity. The unit value is calculated as follows: (2X10+4)/2 = 12 Total: 5 54 The total value is the same as before.
12
24
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Special Cases
In certain scenarios it is impossible to identify the originating layer when attempting to return items from this layer. In such cases the return transaction creates a new layer at the end of the FIFO stack. Example 1 You create a return based on a delivery that was created while in negative inventory. In such a case, an originating layer cannot be identified, even if the return is created while in positive inventory. Example 2 In previous SAP Business One releases the originating layer information for deliveries was not saved. Therefore, after the upgrade to SAP Business One 8.8, when you create a return based on a delivery that was created before the upgrade took place, this return results in a layer at the end of the FIFO stack.
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In new companies created in SAP Business One 8.8, the Expense Offset Account is removed from: o o Administration Setup Financials G/L Account Determination Inventory tab Administration Setup Inventory Item Groups - Setup Accounting tab
o Administration Setup Inventory Warehouses - Setup Accounting tab For upgrading companies, the Expense Offset Account is still available after the upgrade to SAP Business One 8.8 is complete. The Purchase Balance Account is added in SAP Business One 8.8 to new and upgraded companies. This account is available in: o o o Administration Setup Financials G/L Account Determination Inventory tab Administration Setup Inventory Item Groups - Setup Accounting tab Administration Setup Inventory Warehouses - Setup Accounting tab
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The following examples demonstrate the enhancements implemented in the purchasing related transactions:
Example 1 Goods Receipt PO was created for standard item (Item Cost = 3) Quantity = 1, and Unit Price = 10. Following is the journal entry created once the document is added: In releases prior to SAP Business One 8.8: Account Allocation Account Inventory Account Variance Account Purchase Offset Account Purchase Account In SAP Business One 8.8: Account Allocation Account Inventory Account Variance Account Cost of Goods Purchased Purchase Balance Account Purchase Account 10 3 7 3 7 Debit Credit 10 3 3 7 3 Debit Credit 10
The above goods receipt PO is copied into A/P invoice, where the unit price has been changed to 12. The following journal entry takes place in releases prior to SAP Business One 8.8: Account Vendor Allocation Account Variance Account In SAP Business One 8.8: Account Vendor Allocation Account Variance Account Purchase Balance Account Purchase Account 2 10 2 2 Debit Credit 12 10 2 Debit Credit 12
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Example 2 Goods Receipt PO was created for a moving-average item, Quantity = 1, and Unit Price = 10. Following is the journal entry created once the document is added. In releases prior to SAP Business One 8.8: Account Allocation Account Inventory Account Purchase Offset Account Purchase Account In SAP Business One 8.8: Account Allocation Account Inventory Account Cost of Goods Purchased Purchase Account 10 10 10 Debit Credit 10 10 10 10 Debit Credit 10
The above goods receipt PO is copied into A/P invoice, after a delivery for quantity of 1 was created. The unit price in the A/P invoice has been changed to 15. The following journal entry takes place in releases prior to SAP Business One 8.8: Account Vendor Allocation Account Price Differences Account In SAP Business One 8.8: Account Vendor Allocation Account Price Differences Account Purchase Balance Account Purchase Account 5 10 5 5 Debit Credit 15 10 5 Debit Credit 15
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Example 3 Goods Receipt PO was created for a moving-average item, Quantity = 1, Unit Price = 10, and freight charges = 5. Following is the journal entry created once the document is added. In releases prior to SAP Business One 8.8: Account Allocation Account Expense Clearing Account Inventory Account Purchase Offset Account Purchase Account Expense Offset Account In SAP Business One 8.8: Account Allocation Account Expense Clearing Account Inventory Account Cost of Goods Purchased Purchase Account 15 15 15 Debit Credit 10 5 10 5 15 15 Debit Credit 10 5
The above goods receipt PO is copied into A/P invoice, after a delivery for quantity of 1 was created. The unit price in the A/P invoice has been changed to 15, and freight charges of 10 were added. The following journal entry takes place in releases prior to SAP Business One 8.8: Account Vendor Allocation Account Expense Clearing Account Price Difference Account In SAP Business One 8.8: Account Vendor Allocation Account Expense Clearing Account Price Difference Account Purchase Balance Account Purchase Account 10 10 5 10 10 Debit Credit 25 10 5 10 Debit Credit 25
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Example 4 Goods receipt PO is created for moving-average item for quantity = 1, Unit Price = 10, and freight charges = 7. The Available quantity = -10 and the item cost = 5. The following journal entry has been created in releases prior to SAP Business One 8.8: Account Allocation Account Expense Clearing Account Inventory Account Negative Inv. Adjustment Acct Purchase Account Purchase Offset Account In SAP Business One 8.8: Account Allocation Account Expense Clearing Account Inventory Account Negative Inv. Adjustment Acct Purchase Account Cost of Goods Purchased Purchase Balance Account Example 5 A/P credit memo is created for moving-average item, for quantity = 1, unit price =7, and freight charges = 2. The Available quantity = 6 and item cost = 12. Following is the journal entry created once the document is added. In releases prior to SAP Business One 8.8: Account Vendor Inventory Account Purchase Return Account Purchase Offset Account Expense Offset account 9 7 2 Debit 9 9 Credit 5 12 17 5 12 Debit Credit 10 7 5 12 5 5 Debit Credit 10 7
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In SAP Business One 8.8: Account Vendor Inventory Account Price Difference Account Purchase Offset Account Cost of Goods Purchased Purchase Balance Account Example 6 Landed Costs document is created for moving-average item with positive inventory level based on goods receipt PO. Actual Customs = 30. The following journal entry is created once the document is added. In releases prior to SAP Business One 8.8: Account Inventory Account Customs Allocation Account Purchase Account Purchase Offset Account In SAP Business One 8.8: Account Inventory Account Customs Allocation Account Purchase Account Cost of Goods Purchased Example 7 Landed Costs document is created based on goods receipt PO for quantity = 10, while the Available quantity = 4. Actual Customs = 30. The following journal entry takes place once the document is added. In releases prior to SAP Business One 8.8: Account Inventory Account Customs Allocation Account Price Differences Account Purchase Account Purchase Offset Account 18 12 12 Debit 12 30 Credit 30 30 Debit 30 30 Credit 30 30 Debit 30 30 Credit 9 2 7 Debit 9 2 7 Credit
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In SAP Business One 8.8: Account Inventory Account Customs Allocation Account Price Differences Account Purchase Account Cost of Goods Purchased Purchase Balance Account Example 8 Landed Cost document for Quantity = 10 is created based on goods receipt PO. Actual Customs = 30. The inventory level of the item is negative. The following journal entry is created once the document is added. In releases prior to SAP Business One 8.8: Account Inventory Account Negative Inv. Adjustments Acct In SAP Business One 8.8: Account Inventory Account Negative Inv. Adjustments Acct Purchase Account Purchase Balance Account Example 9 Goods receipt PO is created for quantity = 3, and unit price = 10. Then the goods receipt PO is closed. Following is the journal entry created once the document is added. In releases prior to SAP Business One 8.8: Account Inventory Account Allocation Account Purchase Account Purchase Offset Account In SAP Business One 8.8: Account Inventory Account Allocation Account Purchase Account Cost of Goods Purchased 30 30 Debit 30 30 Credit 30 30 Debit 30 30 Credit 30 30 Debit 30 30 Credit Debit 30 30 Credit 18 30 12 18 Debit 12 30 Credit
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Once closing the goods receipt PO the following journal entry is created. In releases prior to SAP Business One 8.8: Account Allocation Account Goods Clearing Account In SAP Business One 8.8: Account Allocation Account Goods Clearing Account Purchase Account Goods Clearing Account 30 Debit 30 30 30 Credit Debit 30 30 Credit
o Administration Setup Inventory Warehouses - Setup Accounting tab The above mentioned accounts are available in upgraded companies, but purchasing transactions created after the upgrade to SAP Business One 8.8 takes place are not posted to these accounts anymore. Following are examples for purchase related transactions that have been enhanced in SAP Business One 8.8: Example 1 Goods receipt PO created for quantity = 1, and unit price = 10. Following is the journal entry created in both SAP Business One 8.8 and releases prior to SAP Business One 8.8: Account Purchase Account Purchase Offset Account Debit 10 10 Credit
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A delivery for the item is created, and then A/P Invoice based on the goods receipt PO is added, The unit price in the A/P invoice is changed to 15. Following is the journal entry created once the A/P invoice is added. In releases prior to SAP Business One 8.8: Account Vendor Purchase Offset Account Price Differences Account In SAP Business One 8.8: Account Vendor Purchase Offset Account Price Account Example 2 Goods receipt PO for quantity = 3 and unit price = 10, was created. Following is the journal entry created in both SAP Business One 8.8 and releases prior to SAP Business One 8.8: Account Purchase Account Purchase Offset Account Debit 30 30 Credit 10 5 Debit Credit 15 10 5 Debit Credit 15
A delivery for the item, quantity = 1 is created, and then A/P Invoice based on the goods receipt PO is added. The unit price in the A/P invoice is changed to 15, freight charges = 10. Following is the journal entry created once the A/P invoice is added. In releases prior to SAP Business One 8.8: Account Vendor Purchase Offset Account Purchase Account Expense (freight) Price Difference Account In SAP Business One 8.8: Account Vendor Purchase Offset Account Purchase Account Expense (freight) 30 15 10 Debit Credit 55 30 10 10 5 Debit Credit 55
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Example 3 Goods receipt PO is created for quantity = 3 and unit price = 10. Following is the journal entry created in both SAP Business One 8.8 and releases prior to SAP Business One 8.8: Account Purchase Account Purchase Offset Account Debit 30 30 Credit
Goods return document is created based on the goods receipt PO. The unit price is changed to 4. Following is the journal entry created when the goods return is added. in releases prior to SAP Business One 8.8: Account Purchase Account Purchase Offset Account In SAP Business One 8.8: Account Purchase Account Purchase Offset Account Example 4 Goods receipt PO is created for quantity = 3 and unit price = 10. Following is the journal entry created in both SAP Business One 8.8 and releases prior to SAP Business One 8.8: Account Purchase Account Purchase Offset Account Debit 30 30 Credit 30 Debit Credit 30 12 Debit Credit 12
Following is the journal entry added when closing the goods receipt PO. In releases prior to SAP Business One 8.8: Account Purchase Offset Account Goods Clearing Account In SAP Business One 8.8: Account Purchase Account Purchase Offset Account 30 Debit Credit 30 Debit 30 30 Credit
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Example 5 Goods return is created for quantity = 3 and unit price = 10. Following is the journal entry created in both SAP Business One 8.8 and releases prior to SAP Business One 8.8: Account Purchase Offset Account Purchase Account Debit 30 30 Credit
The following transaction takes place when closing the goods return document. In releases prior to SAP Business One 8.8: Account Goods Clearing Account Purchase Offset Account In SAP Business One 8.8: Account Purchase Account Purchase Offset Account Debit 30 30 Credit Debit 30 30 Credit
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