SAP Complete Purchase Cycle Till FI

Let us go about purchase cycle:

1. Purchase Requistation : First Purchase requisation has to made to purchase department wheever the product need by the user or production depaartment.They are created by tcode me51k.

2. Once the purchase requested, then the purchase department will search for the materail, where available and when available. That is called Material determination.

3. After the search of material is over, then look for who are the parties , who is going to supplies the material in competitive rate. Then select the correct vendor is known as material determination.

4. After that Tender process done through Tcode-ME41.

5. After finilisation of Tender, the vendor selected and purchase order issued. The Creation of Purchase Order is ME21N. There will not be any finance entry while creating the Purchase Order.

6. Once the purchase order issued, then by the terms of PO, the vendor will supply the materials. The Receipt of Good (GR) , done through MIGO or if it is an service entry done through ML81N.

The Entry will be

Inventory account - dr-
GR/IR Clearing a/c - cr-
Purchase a/c - dr-
Purchase offset a/c -cr-

GR/IR clearing is a intermediate account, will be used to connect cost and vendor.

In GR/IR clearin a/c - 1. Assesable Value
2. Sales Tax
3. Surcharge
ie., Other than Cenvat Clearing will be there.

7. After the receipt of material, the Good Receipt along with Invoice Bill submitted to the Excise person handling Central Excise matters, to take Credit of duty for the product.

The entry will be

1. Cenvat Clearin a/c - cr
RG23a Part II a/c - dr
RG23a Part II cess a/c - dr.

8. From the Excise person , the bill move towards the person who passing the bills for payment. He will do the Invoice Receip First through MIRO. Here two document will be created, one for MM and one for FI.

The entry will be

Vendor a/c - Cr-
Gr/IR Clearing a/c - dr
Cenvat Clearing a/c- dr.

9. After finalisation of Invoice receipt, the bill is for Payment process mode through F-53.

The entry will be
Vendor a/c - dr
Bank a/c - cr.