Manish Parimal /India /IBM

To Amit K Chitkara1/India/IBM@IBMIN

11/04/2014 07:57 AM

cc IGSI-SAP FICO Group, Palani Chelliah/India/IBM@IBMIN

Default custom expiration date

of 11/04/2015

bcc
Subject Re: Fw: GAP on Purchase Account

Hello Amit
I would like to point out here that once you activate Purchase Accounting , it is not that only Purchase A/c/
Purchase Offset A/c will get triggered.
These will be triggered along with the Stock A/c/ GR/IR Clearing A/c.
Earlier I had worked during my Shell project in such environment .
Purchase Account reduces complexity in case of Stock Valuation (FIFO/LIFO etc.)/ Material Ledger.
There were some issues which we faced with Purchase Accounting like the


Amount in Puchase Account was zero in some cases


Stock Transfer posting should not have Purchase Accounts etc.


Other issues in FIFO / Mass Balance (customised)
Some of these got resolved using SAP Notes while some of them were bug-fix.
I'll have to check for any documents as these experience was of my old Project .
Kind Regards
Manish Parimal
DHL NFE Programme
IBM Global Services
Mobile-> +91 7774006202

Amit K Chitkara1

Hi Team, We are currently working on roll-out pr...

11/03/2014 05:51:36 PM

Amit K Chitkara 1/India /IBM

11/03/2014 05:53 PM

To IGSI-SAP FICO Group

cc Palani Chelliah/India/IBM@IBMIN, "Amit Chitkara"
<amit.chitkara@gi-de.com>
Subject Fw: GAP on Purchase Account

Hi Team,
We are currently working on roll-out project for India and one of the requirement of the client is that goods
receipt posting should happen on Purchase Account, instead of the Normal Goods receipt account.
So Instead of
Stock Account Dr.
GRIR Clearing Account

following entry should be passed

Purchase Account Dr.
Purchase Off-setting account.
As purchase figures are required to be disclosed in the Trading & Profit & Loss Account, besides it is also
required for filing the VAT return with the Tax Authorities .
Now, my questions are :
1. Is there any other way, to extract the value of total purchases.
2. Has anyone worked on such a functionality and the challenges being faced ( Share some document if
any ).

And while doing some search on the above topic, we came across SCN thread / 1156034, details of
which have been re-produced here-under:

You activate the purchase account management function in the company code.
In some countries purchase accounts must be managed to document the value at which
externally procurred materials are posted.
The purchase account is posted at the time goods receipts and incoming invoices are
posted, with the same amount as the stock account. The offsetting entry is posted to a
purchase offsetting account. The purchase account is generally not posted upon goods
receipts for purchase orders with account assignment.
A freight purchase account also exists. This is used to document delivery costs posted for
externally procured materials.
Purchase account management is currently used in the following countries:
Belgium
Spain
Portugal
France
Italy
Finland

In Customizing you can

1. Specify the company codes in which purchase account management is active.
2. Then maintain the automatic account determination function for the following
transactions:
EIN Purchase account
EKG Purchase offsetting account
FRE Freight purchase account
In India also you can activate this in case of Trading compnies where you need to track
the Amount of Purchase on account basis.
For Config
SPRO-> IMG-> Materials Management-> Valuation and Account Assignment-> Account
Determination Without Wizard-> Purchase Account Management
Activate Purchase Account in Company Code
Calculation of Value for Purchase Account
Separate Accounting Document for Purchase Account Postings
Configure Automatic Postings
At the time of GR ,
Debit Stock account
Credit GR/IR clearing account
Debit Purchase account
Credit Purchase offsetting account
advantage of this Purchase account from IF side, By viewing the Purchase account you
can get the summation of the Purcahses.
By checking the Onventory account you will not be able to summarise the amounts for
purcahse , but using the Purcahsing account you can summarise that.

This feature is used more in trading business scenarios & sub contrcating business
practises, where the Puircahse of goods needs to be tracked for the P & L & balance sheet
reporting.

Regards,

Amit K Chitkara