Accounting documents created during sales and distribution

 

Accounting entries in SD
In my last blog I have covered accounting during procurement cycle. This knowledge base is for sales and distribution accounting entries.
Please note there are no accounting entries posted in SAP during sales order / quotation etc. Accounting document is generated from delivery mostly when you do the post goods issue.

Let us assume below case:

1. Material valuated on standard price
2. Unit price of the material is 100
3. Quantity is 1
4. Selling price 150

Accounting document generated at the time Post goods issue is:

Cost of Goods Sold	100(cost price)	Dr
Inventory	100(cost price)	Cr

Accounting document generated when you do Customer invoice

Customer	150(Selling price)	Dr
Sales revenue	150(Selling price)	Cr

Hope I have given enough clarity on this. If any questions please let me know.

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SAP FACT

As all you know, SAP is bringing a huge change in the System.
Create a platform like HANA will bring a huge change in the computing. HANA will be future of SAP due to its instant process capability.
Based on my understanding about SAP,  all the table design and architecture of the system is based on the technology available at that time. New things kept on adding the new features. No improvement done in the base technical design like tables etc.
Seems that SAP has made a strategic and big decision of changing their base table design based on the latest technology.
Best example is SAP simple finance. Seems that there is a huge change in the table structures and etc. Net result is all the SAP custom reports need to be modified based on the current table structure.
Also SAP is doing its best to bring everything to CLOUD which also may change everything.
However, I will be keep writing more and more. Request you to contribute the best possible content by you.  All the contents will be reviewed my be before available online. This is only to ensure the quality of the content and prevention of abuse.
I do not have any problem in giving the admin right also. But before that I need see some quality content and also you need to be active.
As of now, this is hosted on a sub-domain and soon will be moves to a proper domain.
Keep visiting, even if you are not a contributor also. I promise, you will find some interesting stuff here.

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