Entries in SAP ERP during procurement of Raw Materials / Goods

Entries in SAP ERP during procurement of Raw Materials / Goods ( Without considering Tax )


1) ON RECEIPT OF RAW MATERIAL
   
     Material A/c Dr
               To GR/IR clearing A/c

( As different modules in SAP are integrated , the entry made by purchase department for goods receipt in MM module (MIGO) will create (2 entries) the above entry in FI module automatically ).




2) ON RECEIPT OF INVOICE FROM VENDORS

     GR/IR A/c  Dr
                 To Vendor


( As different modules in SAP are integrated , the entry made by purchase department for invoice receipt in MM module will create (2 entries) the above entry in FI module automatically ).



3) PAYMENT TO VENDORS

In SAP usually payment is made by running ' Automatic Payment Programme ' . It creates the following entry.

     Vendor A/c Dr
               To Bank Sub A/c



4) Finally the entries in Bank sub a/c will be transferred to 'Main Bank A/c'
   
     Bank Sub A/c Dr
                 To Main Bank A/c