In this topic you can learn detailed explanation of order to cash process with accounting entries.
Inquiry: Transaction code – VA11
The customer inquires about products and services price. No accounting entry will be generated.
Quotation for inquiry: Transaction code – VA21
Quotation is nothing but the price given to the customer. No accounting entry will be generated.
Sales order creation: Transaction code – VA01
Sales order can be created with reference to quotation or without reference to quotation. No accounting entry will be generated while creation of sales orders.
Delivery: Transaction code – VL01N
The following accounting entry will be generated during the post goods issue
COGS Account Dr
Stock Account Cr
Invoice: Transaction code – VF01
The following accounting entry will be generated and supplier needs to send invoice to the customer for the goods delivered.
Customer Account Dr
Discount Account Dr
Sales Revenue Account Cr
Output Tax Account Cr
Payment from customer: Transaction code – F-28
The following entry need to record.
Bank Clearing Account Dr
Customer Account Cr
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