Jyotiraditya B,9959477029 Corporate and Online trainer Organization structure : FI: Business area Company | Company code MM:-

Structure

SD: Structure

Business area | Factory / Sales organization Company code level / | Plants Branch/Port | Regional location | | | Storage locations Raw material / Finished goods Distribution-> Direct sales through /Packing material Channel Agents | | Division Product groups/ products Why we create port as a plant: Keep the material on ship HYD Chennai Factory Port Customer

Export sale Terms of delivery-FOB (Free on Board) ownership will be transferred once we kept the martial on ship. Business area will be assigned to plants, plants will be assigned to sales organization business area will be assigned to sales organizations. In SD module, combination of sales organization, distribution channel and division One sales area. Sales Area 1 Hyd sales Org. | Direct sales | Steel Sales Area 2 Hyd Sales org | Through agents | Steel

Movement types: Similar to posting keys in FI 101 Material receipt against purchase order /production order 102/122 Reversal of 101

Jyotiraditya B,9959477029 201 202 261 262 521 522 561 562 601 602 Issue to cost centers Reversal of 201 Issue to orders Reversal of 261 Production receipt without production orders. Reversal of 521 Opening stocks taking Reversal of 561 Delivery (sales) Reversal of 601

Difference between 201 and 261 Cost centers Issue material (Movement type 261) Stores items to issue (Mov.type 201) (cost center 201) Dept A Production order 1 Dept B Dept C

Production order 2 Production order 3

Material issue is identifiable to production orders use movement type 261 Material issue is not identifiable to production orders use movement type 201

Valuation class: Valuation class determines the GL accounts to be posted automatically. A) Raw materials Local Imported Inter unit purchases Inter company purchases 4 Valuation class B) Stores :Local 2 valuation class C) Finished goods own manufacturing 1 valuation class Valuation Areas Plants HYD BGL BGL MUM HYD MUM Chat of accounts BIL BIL BIL BIL BIL BIL Company codeValuation Grouping BIL BIL BCL BCL BSL BSL X X X X X X

Jyotiraditya B,9959477029

For X in case of RM local purchases assign account number 200121, inventory Raw material local. MM Flow A) Material requisition By production Dept to Stores B) Purchases requisition By stores to purchases C) Call for enquiries, Get quotations and do price comparisons By purchase Dept. D) Create purchase order Vendor number, Material Quality, Rate, Plant, Company code Delivery terms, payment terms, Purchase organization E) Release It is optional It will work through work flow If P.O value is less than Rs.10000 To be released by manager purchases

If P.O value is Rs.10000 and above To be released by GM(Purchases) And less than 100000 if P.O value is 10000 and above To be released by Director Once we save the purchase order, based on the value it goes to the inbox of the command authorized person, till is releases we cant take goods receipt. F) Goods receipt With reference to P.O Inventory RM local DR 100 To GR/IR clearing RM local 100 Balance sheet current asset BSX Balance sheet current liability WRX (Qty in GR*Rate as per P.O) Invoice verification-Against PO/GR GR/IR clearing RM local DR 100 Balance sheet CL WRX To party 100 Balance sheet CL From PO, Party no. will be taken i) Raw material consumption RM Consumption Local DR 100 P & L Debit GBB VBR To inventory RM local 100 BS C/A(Current Asset) BSX J) Wages payment Wages A/c DR 20 P & L Debit To Bank 20 BS CA K) Production Receipt At product cost Inventory FG DR (FG =Finished goods) 120 BS C/A BSX

G)

Jyotiraditya B,9959477029 To INC/DEC in stocks FG 120 P & L Credit GBB ZOF In case of no production order /CPP module not implement GBB AUF in case of production order (PP module implemented) SD steps L) Delivery At product cost INC /DEC in stocks FG DR 120 P & L Credit GBB VAX If sales account is not created as revenue element (Co not implemented /GBB VAY If sales account is created as revenue element (Co Implemented) To Inventory FG 120 BS C/A M) Sales billing Customer A/c DR 150 BS C/A From sales order, customer number will be taken To Sales 150 P & L credit ERL LCL=Local Inventory FG=Raw material consumption local +wages GR=Goods receipt INC/DEC STK FG=Increase /Decrease stock finished goods P & L account H) RM can local Wages Net profit 100 L)Sales 150 20 J)INC/DEC STKFG 120 30 K)INC DEC STK FG -120 ------150 ===

0 ----150 ===

Balance Sheet Surplus in P & L Account 30 F) GR/IR CLG RM LCL 100 A) GR/IR CLRG RM LCL -100 0 a) Sundry creditors RM 100 F) INV RM LCL 100 H) INV RM LCL -100 --------0 I) Bank -20 j) INV FG 120 K)INV FG -120 0 L)Sundry debtors 150 -------130 ===

---130 ===

Jyotiraditya B,9959477029

Integration rules A) In material master we specify valuation class B) For valuation class we assign GL accounts based on the nature of transaction C) At the time of material receipt/Issue stores person enters movement type, material number and quantity. Our accounts will be up dated automatically based on accounts assignment to valuation class which is specified in material master Eg: Material no. Valuation RM1 (local) Inventory postings BSX GR/IR Consumption Clearing (GBB VBR) (WRX) 100520-GR/IR 40000-RM CLRG RM LOCAL Consumption-IMP

3000 RM local 200121-INV-RM Local Local Raw Material 1. Purchase order Material RM1 Vendor -1234 Qty-100 Kgs Rate 5 Rs Save P.O.No.1 2. Goods receipt with reference to P.O-P.O No.1 Movement Type:101 Debit BSX Credit WRX Material RM1 Qty 60 kgs Save Material Doc no.200001 200121 Inventory RM local DR 100520 GR/IR CLR RM Local (Qty IN GR *Rate as per P.O) 60*5 Raw material consumption Movement type 201 Debit GBB VBR Credit BSX 200121 Material RM1 3000 Qty 10 Kgs 400000 RM Consumption LCL DR 50 200121 Inventory RM Local 50 (Qty issued * Moving average rate) Imported raw material 1. Purchase order Material -RM2 300 300

200121

Debit A/c No. 400000

Jyotiraditya B,9959477029 Vendor -4567 Qty-1Kg Rate -100 PO No.2 1. Goods receipt- with reference to PO-PO No.2 Movement type:101 Debit BSX 200122 Credit WRX 100521 Martial RM2 3001 Qty 1 Kg Save Material Doc No.200003 200122Inventory RM IMP DR 100 100521GR/IR CLRG RM IMP 100 (Qty IN GR* Bate as per P.O) 1*100 Raw material returns Material doc no.200003 Movement Type 102 Debit WRX Credit BSX 3001 DR 100 100 100521 100122

Material RM2 Qty 1 Kg Save Material doc no.200004 100521 GR/IR CLR RM IMP 200122Inventory RM IMP