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Credit Purchase account DR

To MR.Y Accounts Payable

MR. Y DR

To Cash account Accounts payable

Credit Purchase account DR

To MR.Y Accounts Payable

MR. Y DR

To Cash account Accounts payable

Credit Purchase account DR

To MR.Y Accounts Payable

MR. Y DR

To Cash account Accounts payable

Accounting Flow

1. Business transaction
2. Journal- Business transaction is recorded
3. General ledger and post entries
4. Trial balance Balance of G/L
5. Profit &Loss account
6. Balance sheet

Golden Rules Accounting

Real- DR- What comes in / CR- What goes out

Nominal- DR- All the expenses and losses / CR- All gains and income

Personal- DR- the receiver / CR- the giver

1. Salary paid for 10000 via cash

Salary a/c DR 10000

To Cash account

2. Mobile bill paid via bank RS15000

Mobile Bill DR 15000

To Bank 15000

3. Rent paid via cash 12000

Rent DR 12000

To Cash 12000

4. Commission paid via bank 3000 and via cash 4000

Commission paid DR 7000

To bank account 3000

To Cash account 4000

5. Interest received via bank 9000

Bank a/c DR 9000

To Interest received 9000

6. Commission received via cash for 8500

Cash a/c DR 8500


To Commission received 8500

7. Goods sold for 6000 to Ram and received money via cash

Cash a/c DR 6000


To Goods a/c 6000

8. Good purchased for 9000 from Shyam and paid via bank

Goods DR 9000

To Bank a/c 9000

9. Goods sold to MR Ram 9000 on credit- Credit Sales Invoice- 9001

Ram a/c DR 9000

To Goods-CR 9000

10. Goods purchased from Shyam for 7000 on credit

Goods DR 7000

To Shyam 7000

11. Received money from Ram 6000

Cash DR 6000

To Ram account 6000

12. Received money from Ram for 3000

Cash DR 3000
To Ram account 3000

13. Goods purchase on credit from MR X for 8500

Good a/c DR 8500

To MR. X

14. Paid Mr.x 8500 via bank

MR.X- DR 8500

To bank a/c 8500


Assets

Liabilities

Income

Expenses

Credit Sales Process

Mr.X- DR - Accounts receivable- Reconciliation account- 1000- -500 customer

To Credit sales account

Payment - 800 transactions- 150 customers- 50 not paid

Cash DR

To MR.X CR- Accounts receivable

Credit Purchase Process

Sales of furniture

Cash a/c DR

To Furniture

SAP

Systems Applications Products In data Processing

SAP- ERP
ERP- Enterprise resource planning

MM

PP

SD

FI

HR

MM+PP= MRP1-

MM+PP+SD= MRP2

MM+PP+SD+FI= SAP

MM+PP+SD+FI+HR= SAP

Functional- MM PP SD FI HR

Technical- BASIS ABAP

FI

Financial accounting- External reporting purpose-

General Ledger

Accounts receivable

Accounts Payable

Bank

Asset accounting

CO- Controlling

Internal reporting purpose- Management accounting + Cost accounting

ABC
P1- 10

P2-20

P3-30

36000 USD

FI-Salary a/c DR 36000

To Bank account

Co- P1- 10/60*36000=6000

P2- 12000

P3- 18000

Cost center

Profit center

Internal orders

Product costing

CO-PA

FI-MM- Purchase cycle

Reports-

Month and year end

New G/L-

Enterprise Structure

Organizational Units

Client-Business Area- CCA

TATA Company-

TCS Company code TATA Motors TATA Steel

Business Area

Delhi
Mumbai

Bangalore

Chennai

DEV

Sandbox-110

Golden Client- 100- Transport request- TR

DEV TEST-120

QA

UAT/TEST-900

PRD

PRD Client-900

Consolidated Business Area

Delhi + Mumbai = North CBA

Bangalore + Chennai= South CBA

Credit Control area- Client level

CCA1-100000- TCS- TM

CCA2-200000-TS

Definition

1. Define Company
2. Define company code
3. Define Business area
4. Define consolidated BA
5. Define Credit control area

Assignment

1. Assign company code to company


2. Assign company code to credit control area
3. Assign business area to consolidated BA

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