Valuated and non-valuated Sale Order scenarios - Business Process Flow – FI/CO

SAP Scenario 1 - Valuated Sale Order Stock – with Sale Order Controlling – (MTO, ATO and ETO with VC):

 

1. Enquiry
2. Opportunity
3. Quotation (Creation and Approval). In case of ETO – BPO is created and updated in quotation (condition type)
4. Creation of Sale Order
5. MRP Run – Creation of Planned Order – Creation of Production Order and Purchase Order
6. External Procurement – Goods Receipt:

      ROH Inventory Account           Dr (BALANCE SHEET)

To GR/IR Account                   Cr (PROFIT & LOSS ACCOUNT)

 

7. Material Consumption to Production Order:

In FI:

 

ROH consumption Account       Dr (PROFIT & LOSS ACCOUNT)

To ROH Inventory Account       Cr (BALANCE SHEET)

 

Same in the case with HALB

 

In CO: Cost of Material is debited to Production Order

 

8. Activity Consumption to Production Order:

 

• In FI: No Posting
• In CO: Production Order is debited and cost center is credited with activity cost.

 

9. Goods Receipt from Production Order:

      FG Inventory Account           Dr (BALANCE SHEET)

To COGM Account                Cr (PROFIT & LOSS ACCOUNT)

 

10. Delivery to customer:

                   In-Transit Account             Dr. (BALANCE SHEET)

To FG Inventory Account     Cr (BALANCE SHEET)

 

11. Invoicing to customer:

                   In FI:

Customer Account             Dr (BALANCE SHEET)

To Revenue Account          Cr (PROFIT & LOSS ACCOUNT)

 

COGS Account                  Dr (PROFIT & LOSS ACCOUNT)

To In-Transit Account       Cr (BALANCE SHEET)

 

In CO: COGS and Revenue are posted to COPA Period end closing – Production Order

 

12. Revaluation of activity prices: Production Order and Cost Center will be debited or credited as the case may be
13. Calculation of WIP In FI:

      WIP Account                           Dr. (BALANCE SHEET)

To Change in WIP Account      Cr (PROFIT & LOSS ACCOUNT)

 

If the Order is completed:

 

In FI:

 

Change in WIP Account           Dr (PROFIT & LOSS ACCOUNT)

To WIP Account                     Cr (BALANCE SHEET)

 

14. Calculation of Variances: Variances are calculated on the Production Order. No FI or CO entries
15. Settlement to Sale Order: Production Order and Sales Order will get debited/credited depending on whether they are positive or negative variances.  
16. Result analysis at Sale Order: Result Analysis run will identify the status of the sale order and will enable the postings to COPA at the time of settlement
17. Settlement of Sale Order:

In FI:

 

Variances Account                        Dr (PROFIT & LOSS ACCOUNT)

To COGS Account                         Cr (PROFIT & LOSS ACCOUNT)

(It would be otherwise if variances are positive)

 

In CO:

 

COGS, Revenue and Variances are settled to COPA

  

SAP Scenario 2 – Non-valuated Sale Order Stock – with Sale Order Controlling: Process Step Business Process Flow Value Flow – FI/CO

 

1. Enquiry
2. Opportunity
3. Quotation (Creation and Approval)
4. Creation of Sale Order
5. MRP Run – Creation of Planned Order – Creation of Production Order and Purchase Order
6. External Procurement – Goods Receipt

 In FI:

 

Consumption Account             Dr (PROFIT & LOSS ACCOUNT)

To GR/IR Account                  Cr (PROFIT & LOSS ACCOUNT)

 

In CO: Material costs will directly get posted to Sale Order

 

7. Material Consumption to Production Order:             -           Not applicable
8. Activity Consumption to Production Order

In FI: No Entry

In CO: Activity Costs are posted to Production Order

 

9. Goods Receipt from Production Order:
1. Only Material Document for movement of goods will be there.
2. The stock is neither valuated in CO nor in FI
10. Delivery to customer:
1. Just goods movement from sale order stock to customer.
2. No value postings in FI and CO
11. Invoicing to customer

 In FI:

 

Customer Account                 Dr (BALANCE SHEET)

To Revenue Account             Cr (PROFIT & LOSS ACCOUNT)

 

In CO: COGS and Revenue get posted to Sale Order Period end closing – Production Order

 

12. Revaluation of activity prices: Production Order and Cost Center will be debited or credited as the case may be
13. Calculation of WIP:                 -           No WIP
14. Calculation of Variances:            -           No Variances
15. Settlement of costs to Sale Order: All the costs accumulated in Production Order gets collected to Sale Order
16. Settlement of Variances: No Variances in Production
17. Result analysis at Sale Order:

In FI:

 

WIP Account                                Dr. (BALANCE SHEET)

To Change in WIP Account            Cr (PROFIT & LOSS ACCOUNT)

 

If the Order is completed:

 

Change in WIP Account               Dr (PROFIT & LOSS ACCOUNT)

To WIP Account                         Cr (BALANCE SHEET)

 

No CO postings will happen

18.   Settlement of Sale Order: COGS, Revenue and other direct sale order related values will get posed to PA.