What are the accounting entries for Free Goods receipt?

alt text

Answer: After clicking ‘F’ (Free Goods Indicator)  in purchase order , the net price of the item  will become Zero and the condition tab will be disappeared. Finally when we do the Goods Receipt, accounting entries won’t be generated.

If the material has price control as Moving Average Price (V), no accounting entries. But if the material has price control as Standard Price (S), the accounting entries will be as shown below.

Inventory Account – BSX – Debit (+)

Price Difference Account – PRD – Credit (-)





Difference between STO and Transfer Posting

Stock Transport Order: 

•Separate document type is available in Standard SAP. Stock Transfer Order is created with ME21N.

•Delivery Costs and any other charges can be given in PO Conditions. Separate Pricing procedure for STO is also available in SAP

•Delivery and Billing can be done through STO

•This process is generally preferred when client has plants in different cities or states and when client requires to monitor any other details like texts related , conditions related etc

Transfer Posting:

•This process is done through MIGO

•Conditions can’t be maintained

•This is a transaction where only goods can be transferred so facilities which can be monitored in PO can’t be done

•This process is generally preferred when plants are in same city or client doesn’t want to monitor freight etc. details