Credit and debit movements for Procurement.

The procurement process involves five accounting movements.

Two movements for debit and credit when the products and

delivered to the warehouse inventory from the provider.

Three movements when invoicing to the provider.

The amount of the product value on the Inventory

is calculated after the Purchase applying the chosen

revaluation method.  The revaluation methods are: 

FIFO:  First In First Out

LIFO:  Last In First Out

Average

Sales like Procurement involves five accounting entries.

Two movements when products are taken out of the warehouse inventory. 

And three movements when the invoice is sent to the client. 

The cost of sales of the products is stored in the accounting

movement when they are taken out of the warehouse. 

The sales price is stored when the invoice is delivered

to the client.  The difference between the sales price and sales

cost is the revenue.

Purchase Order, Deliver the product to the Warehouse and Invoice the Provider

The Purchase Order is the first step to receive the product

from the provider and entry into the warehouse inventory. Also,

it is necessary to generate the invoice.

Deliver the product to the warehouse generates two entries

in the accounting journal system.  Invoicing to the provider

generates three entries in the journal accounting including

the Account Payables and Taxes.

The query for the inventory module is on the Production Process of SAP S4 Hana.

Query the entries and exits of products due to Purchases and Sales order by date.

Sales Order first step to deliver and invoicing the client.

Allocate the quantity of the product in the warehouse to sell this product

to the client.  Then create the Sales Order.

Outbound generates LOG to create the Delivery ID and journal entries.

Once the products are taken out of the inventory warehouse, two entries are

generated in the accounting journal system.

Invoicing to register accounts Receivables and sales cost

The invoicing generates three accounting journal movements. 

One for the Accounts Receivables in the DEBIT column because

it is an asset for the company.  One of the Credits with

the Sales Price without tax and one in the Credit for the TAXES.

Invoicing to register accounts Receivables and sales cost

The invoicing generates three accounting journal movements. 

One for the Accounts Receivables in the DEBIT column because

it is an asset for the company.  One of the Credits with

the Sales Price without tax and one in the Credit for the TAXES.

Use the Income Payments module to pay the providers.

The payments to the providers affect the Bank Account

and the accounts cleared by the payment. Two entries

for the account journal to lower the pending amount of the debt.

Use the Income Payments module to recieve payments from clients.

The payments from clients affect the Bank Account

and the accounts cleared by the payment. Two entries

for the account journal to lower the pending amount of the debt from client.