Valuated and non-valuated Sale Order

scenarios - Business Process Flow FI/CO

SAP Scenario 1 - Valuated Sale Order Stock with Sale Order Controlling (MTO, ATO
and ETO with VC):
1. Enquiry
2. Opportunity
3. Quotation (Creation and Approval). In case of ETO BPO is created and updated in
quotation (condition type)
4. Creation of Sale Order
5. MRP Run Creation of Planned Order Creation of Production Order and Purchase
Order
6. External Procurement Goods Receipt:
ROH Inventory Account Dr (BALANCE SHEET)
To GR/IR Account Cr (PROFIT & LOSS ACCOUNT)

7. Material Consumption to Production Order:

In FI:

ROH consumption Account Dr (PROFIT & LOSS ACCOUNT)

To ROH Inventory Account Cr (BALANCE SHEET)

Same in the case with HALB

In CO: Cost of Material is debited to Production Order

8. Activity Consumption to Production Order:

In FI: No Posting
In CO: Production Order is debited and cost center is credited with activity cost.

9. Goods Receipt from Production Order:

FG Inventory Account Dr (BALANCE SHEET)
To COGM Account Cr (PROFIT & LOSS ACCOUNT)

10. Delivery to customer:

In-Transit Account Dr. (BALANCE SHEET)
To FG Inventory Account Cr (BALANCE SHEET)

11. Invoicing to customer:

In FI:
Customer Account Dr (BALANCE SHEET)
To Revenue Account Cr (PROFIT & LOSS ACCOUNT)

COGS Account Dr (PROFIT & LOSS ACCOUNT)

To In-Transit Account Cr (BALANCE SHEET)

In CO: COGS and Revenue are posted to COPA Period end closing Production Order

12. Revaluation of activity prices: Production Order and Cost Center will be debited or
credited as the case may be
13. Calculation of WIP In FI:
 WIP Account Dr. (BALANCE SHEET)
To Change in WIP Account Cr (PROFIT & LOSS ACCOUNT)

If the Order is completed:

In FI:

Change in WIP Account Dr (PROFIT & LOSS ACCOUNT)

To WIP Account Cr (BALANCE SHEET)

14. Calculation of Variances: Variances are calculated on the Production Order. No FI or CO

entries
15. Settlement to Sale Order: Production Order and Sales Order will get debited/credited
depending on whether they are positive or negative variances.
16. Result analysis at Sale Order: Result Analysis run will identify the status of the sale
order and will enable the postings to COPA at the time of settlement
17. Settlement of Sale Order:
In FI:

Variances Account Dr (PROFIT & LOSS ACCOUNT)

To COGS Account Cr (PROFIT & LOSS ACCOUNT)
(It would be otherwise if variances are positive)

In CO:

COGS, Revenue and Variances are settled to COPA

SAP Scenario 2 Non-valuated Sale Order Stock with Sale Order Controlling: Process
Step Business Process Flow Value Flow FI/CO
1. Enquiry
2. Opportunity
3. Quotation (Creation and Approval)
4. Creation of Sale Order
5. MRP Run Creation of Planned Order Creation of Production Order and Purchase
Order
6. External Procurement Goods Receipt
In FI:

Consumption Account Dr (PROFIT & LOSS ACCOUNT)

To GR/IR Account Cr (PROFIT & LOSS ACCOUNT)

In CO: Material costs will directly get posted to Sale Order

7. Material Consumption to Production Order: - Not applicable

8. Activity Consumption to Production Order
In FI: No Entry
In CO: Activity Costs are posted to Production Order

9. Goods Receipt from Production Order:

a. Only Material Document for movement of goods will be there.
b. The stock is neither valuated in CO nor in FI
10. Delivery to customer:
a. Just goods movement from sale order stock to customer.
b. No value postings in FI and CO
 11. Invoicing to customer
In FI:

Customer Account Dr (BALANCE SHEET)

To Revenue Account Cr (PROFIT & LOSS ACCOUNT)

In CO: COGS and Revenue get posted to Sale Order Period end closing Production
Order

12. Revaluation of activity prices: Production Order and Cost Center will be debited or
credited as the case may be
13. Calculation of WIP: - No WIP
14. Calculation of Variances: - No Variances
15. Settlement of costs to Sale Order: All the costs accumulated in Production Order gets
collected to Sale Order
16. Settlement of Variances: No Variances in Production
17. Result analysis at Sale Order:
In FI:

WIP Account Dr. (BALANCE SHEET)

To Change in WIP Account Cr (PROFIT & LOSS ACCOUNT)

If the Order is completed:

Change in WIP Account Dr (PROFIT & LOSS ACCOUNT)

To WIP Account Cr (BALANCE SHEET)

No CO postings will happen

18. Settlement of Sale Order: COGS, Revenue and other direct sale order related values will get
posed to PA.