Preface

13

Objective of This Book

13

Target Audience

13

Structure of This Book

14

Acknowledgments

16

1 Materials Management

17

1.1 Normal Purchasing

17

1.1.1 Business Process Overview

18

1.1.2 Inventory Accounts (Transaction Key Technique)

24

1.1.3 Price Variance Account

39

1.1.4 Inventory GR/IR Accounts

42

1.1.5 Condition-Related Accounts

43

1.1.6 Vendor Reconciliation Accounts

51

1.1.7 Unplanned Delivery Costs Accounts

51

1.1.8 Input Tax Accounts

55

1.1.9 Withholding Tax Accounts

56

1.2 Purchasing of Consumables

56

1.2.1 Business Process Overview

57

1.2.2 Consumption/Expense Accounts

57

1.3 Purchase Account Management

60

1.3.1 Business Process Overview

61

1.3.2 Inventory Purchasing Management Account

62

1.3.3 Freight Purchasing Management Account

63

1.3.4 Purchasing Management Offsetting Account

64

1.4 Vendor Consignment

65

1.4.1 Vendor Consignment versus Customer Consignment

65

1.4.2 Business Process Overview

66

1.4.3 Consignment GR/IR Account

70

1.5 Summary

72

2 Sales and Distribution

73

2.1 Sales from Stock

73

2.1.1 Business Process Overview

74

2.1.2 COGS Accounts at Goods Issue

80

2.1.3 COGS Split Accounts

81

2.1.4 Sales Revenue, Discounts, and Surcharges Accounts (The Condition Technique)

85

2.1.5 Accounts Receivable

103

2.1.6 Value-Added Tax Accounts

112

2.1.7 Withholding Tax Accounts

113

2.2 Sales from Stock with COGS Posting at Billing

113

2.2.1 Business Process Overview

113

2.2.2 Goods in Transit Account at Goods Issue

115

2.2.3 COGS and Goods in Transit Accounts at Sales Billing

116

2.3 Sales from Stock with Valuated Stock in Transit

119

2.3.1 Business Process Overview

120

2.3.2 Valuated Stock in Transit Account

122

2.4 Sales Returns

124

2.4.1 Business Process Overview

125

2.4.2 Sales Returns Accounts

130

2.4.3 Scrap Expense Account

132

2.5 Third-Party Sales

133

2.5.1 Business Process Overview

133

2.5.2 Third-Party Sales Consumption Account

136

2.6 Cash Sales

139

2.6.1 Business Process Overview

140

2.6.2 Cash Accounts

141

2.7 Free-of-Charge Sales

148

2.7.1 Business Process Overview

148

2.7.2 Determination of Free-of-Charge COGS Account

151

2.8 Consignment Sales (Customer Consignment)

154

2.8.1 Sales Consignment Fill-Up

155

2.8.2 Sales Consignment Issue

156

2.8.3 Sales Consignment Pick-Up

157

2.8.4 Sales Consignment Return

157

2.9 Sales Rebates

158

2.9.1 Business Process Overview

159

2.9.2 Sales Rebate Accrual and Expense Accounts

164

2.10 Summary

175

3 Production Planning and Product Costing

177

3.1 Product Cost Planning

178

3.1.1 Cost Elements: Direct Material Costs

179

3.1.2 Cost Elements: Manufacturing Activities

182

3.1.3 Cost Elements: Manufacturing Overhead

185

3.1.4 Assign Cost Elements to Cost Components

188

3.1.5 Save, Mark, and Release Standard Cost Estimates

190

3.2 Cost Object Controlling

195

3.2.1 Cost Object Controlling Process Overview

195

3.2.2 Work-in-Progress Settlement Accounts

204

3.2.3 Production Variances Settlement Accounts

210

3.3 Summary

212

4 Accounts Receivable and Accounts Payable

213

4.1 Reconciliation Accounts

214

4.1.1 Concept Overview

214

4.1.2 Create Reconciliation Accounts

214

4.1.3 Assign Reconciliation Accounts to Business Partners

216

4.2 Down Payments and Down Payment Requests

218

4.2.1 Business Process Overview

219

4.2.2 Assign Down Payment Accounts

219

4.2.3 Other Alternative Reconciliation Account Process

222

4.3 Value-Added Taxes

223

4.3.1 Business Process Overview

223

4.3.2 Input and Output Tax Accounts

225

4.4 Manual Incoming and Outgoing Payments

229

4.4.1 Business Process Overview

230

4.4.2 Cash Discount Accounts

232

4.4.3 Accounts for Overpayments and Underpayments

234

4.4.4 Rounding Difference Accounts

236

4.5 Automatic Incoming and Outgoing Payments

237

4.5.1 Business Process Overview

237

4.5.2 Automatic Payment Accounts

239

4.6 Withholding Taxes

249

4.6.1 Business Process Overview

249

4.6.2 Withholding Tax Accounts

250

4.7 Interest Calculation

252

4.7.1 Business Process Overview

252

4.7.2 Account Determination Objects

253

4.7.3 Interest Accounts

256

4.8 GR/IR Analysis

257

4.8.1 Business Process Overview

257

4.8.2 GR/IR Analysis Accounts

260

4.9 Summary

262

5 Cash and Banking

265

5.1 House Bank and Other Subaccounts

265

5.1.1 House Bank

265

5.1.2 Bank Subaccounts by Payment Method

266

5.2 Account Determination

267

5.2.1 Objects for Automatic Payment Transactions

267

5.2.2 Internal Transactions Type

269

5.2.3 External Transactions Type

270

5.2.4 Interpretation Algorithm

270

5.2.5 Posting Rules

271

5.3 Automatic Bank Statements

272

5.3.1 Business Process Overview

273

5.3.2 Automatic Bank Statement Accounts

273

5.4 Manual Bank Statements

275

5.4.1 Business Process Overview

275

5.4.2 Manual Bank Statements Accounts

276

5.5 Deposited Check Transaction

278

5.5.1 Business Process Overview

278

5.5.2 Deposited Check Configuration

279

5.6 Lockbox

279

5.6.1 Business Process Overview

280

5.6.2 Lockbox Account Determination

280

5.7 Payment Request Process

281

5.7.1 Business Process Overview

282

5.7.2 Payment Request Account Determination

282

5.8 Bill of Exchange

284

5.8.1 Business Process Overview

284

5.8.2 Bill of Exchange Accounts Receivable Transaction Accounts

285

5.8.3 Bill of Exchange Account Payable Transaction Accounts

288

5.9 Cash Journal

289

5.9.1 Business Process Overview

289

5.9.2 Cash Journal Accounts

290

5.10 Summary

291

6 Fixed Assets

293

6.1 Fixed Asset Account Determination Logic

294

6.1.1 Asset Class

295

6.1.2 Depreciation Area

296

6.1.3 Accounting Principle

298

6.1.4 Chart of Depreciation

298

6.1.5 Account Determination

300

6.1.6 Other Asset Accounting Objects

301

6.1.7 General Ledger Account Determination

303

6.2 Asset Acquisition and Asset Capitalization

306

6.2.1 Business Process Overview

306

6.2.2 Asset Acquisition Account

307

6.2.3 Offsetting Entry Accounts

307

6.2.4 Offsetting for Post Capitalization

308

6.3 Asset Depreciation

308

6.3.1 Business Process Overview

309

6.3.2 Ordinary Depreciation Accounts

310

6.3.3 Unplanned Depreciation Accounts

310

6.3.4 Special Depreciation Accounts

311

6.4 Asset Retirement by Sales

313

6.4.1 Business Process Overview

313

6.4.2 Gain and Losses Accounts from Asset Sales

313

6.5 Asset Scrap or Disposal

314

6.5.1 Business Process Overview

314

6.5.2 Scrap and Disposal Accounts

315

6.6 Asset Intercompany Transfer

315

6.6.1 Business Process Overview

315

6.6.2 Acquisition from Affiliates Account and Revenue of Sale to Affiliates Account

316

6.7 Asset under Construction

316

6.7.1 Business Process Overview

317

6.7.2 Accounts for Asset under Construction Settlement

318

6.7.3 Accounts for Capitalization of Down Payments

319

6.8 Asset Revaluation Postings

319

6.8.1 Business Process Overview

320

6.8.2 Revaluations of Acquisitions and Offsetting Accounts

321

6.9 Investment Support

322

6.9.1 Business Process Overview

322

6.9.2 Accounts for Investment Support Transactions

323

6.10 Imputed Interest Calculation

324

6.10.1 Business Process Overview

324

6.10.2 Accounts for Imputed Interest Calculation

325

6.11 Summary

326