Standard Purchase Process Flow with Accounting – SAP Business one

Created by: Sandeep Rathod

Example: We are purchasing 10 Quantities of Item A with unit price of 100. Item A is Excisable

(BED@12+ECess@0+HSCess@0+VAT@5%)

Stock Formula in SAP:

Available = Instock – Committed + Ordered

• No Accounting Impacts

• Impact on Stock Status on the particular warehouse

Available Instock Committed Ordered

10 10

• Accounting Impact occurs when GRPO is added in system

• Purchase Order is closed once all Quantities are converted to GRPO

Account Name Account

Drawer

Debit Credit

Inventory Account Asset 1000

Goods Received

Not Invoiced

Liability 1000

Purchase Order

GRPO

Standard Purchase Process Flow with Accounting – SAP Business one

Created by: Sandeep Rathod

• Impact on Stock Status on the particular warehouse

Available Instock Committed Ordered

10 10

• Accounting impacts when GRPO is converted to Incoming Excise

Invoice

Account Name Account

Drawer

Debit Credit

Input Credit on

Excise duty

Asset 120

Incoming CENVAT

Clearing Account

Asset 120

Incoming Excise Invoice

Standard Purchase Process Flow with Accounting – SAP Business one

Created by: Sandeep Rathod

• Accounting Impacts when GRPO is converted to A/P Invoice

• GRPO is closed once it is converted to A/P

Account Name Account

Drawer

Debit Credit

Creditors

(Control Account)

Liability 1176

Input Credit on VAT

Goods Received

Not Invoiced

Incoming CENVAT

Clearing Account

Asset

Liability

Asset

56

1000

120

• A/P Invoice is closed once converted to Outgoing payment

• Reconciliation is done automatically since payment is made against

invoice

• Accounting impact by Outgoing payment

Account Name Account

Drawer

Debit Credit

Bank Account

Asset 1176

Creditors Account Liability 1176

A/P Invoice

Outgoing Payment

Standard Purchase Process Flow with Accounting – SAP Business one

Created by: Sandeep Rathod