Standard Purchase Process Flow with Accounting – SAP Business one

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

Purchase Order

• No Accounting Impacts
• Impact on Stock Status on the particular warehouse

Available Instock Committed Ordered

10 10

GRPO

• Accounting Impact occurs when GRPO is added in system

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

Account Name Account Debit Credit

Drawer

Inventory Account Asset 1000

Goods Received Liability 1000

Not Invoiced

Created by: Sandeep Rathod

Standard Purchase Process Flow with Accounting – SAP Business one

• Impact on Stock Status on the particular warehouse

Available Instock Committed Ordered

10 10

Incoming Excise Invoice

• Accounting impacts when GRPO is converted to Incoming Excise

Invoice

Account Name Account Debit Credit

Drawer

Input Credit on Asset 120

Excise duty

Incoming CENVAT Asset 120

Clearing Account

Created by: Sandeep Rathod

Standard Purchase Process Flow with Accounting – SAP Business one

A/P Invoice

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

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

Account Name Account Debit Credit

Drawer

Creditors Liability 1176

(Control Account)

Input Credit on VAT Asset 56

Goods Received Liability 1000

Not Invoiced

Incoming CENVAT Asset 120

Clearing Account

Outgoing Payment

• 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 Debit Credit

Drawer

Bank Account Asset 1176

Creditors Account Liability 1176

Created by: Sandeep Rathod

Standard Purchase Process Flow with Accounting – SAP Business one

Created by: Sandeep Rathod