Optimize Your Sales Workflow for Accounting and Tax with airSlate SignNow

How to create outlook signature

welcome to another video in the order to catch playlist in the video today I will explain the three of charge sales process or FOC sales and this is a process we use to send the free products to our customer either as a compensation because of damaged materials or as samples or for any other reason for which we want to send some items to the customer without charging him for the price this process requires a specific configuration saps for Hana in the video today I will explain the most common business requirements we get as sap Consultants when working on this process so after watching the video if you find that you have other requirements that I did not explain then please let me know in the comments and I will do my best to create another video explaining the other requirements and also to include them in the saps 4hana demo and also the configuration demo so after the video today I will follow this with other videos demonstrating the process on saps for Hana and also demonstrating the configuration the objective of this video is to explain in details the different business requirements we get when working on this process during our sap projects and also to demonstrate the different accounting entries included in the process in the different business cases the free of charge said the process is very similar to The Standard sales from stock process that I already explained in the playlist I will leave you a link here to the other video so the process stores like any other City process with the creation of the sales order and in the sales order we have our different pricing conditions so we can see the sales price of the item and any discounts surcharges and taxes and as a business requirement for free of charge sales we want to have the sales price followed by a 100 discount so for example let's say we want to send 100 items of our product to the customer and the price per item is 10 EUR so the total is 1000 ER in our sales order we want to see 1000 EUR as a sales price followed by negative 1000 EUR as a sales discount so we have a net of zero so the customer doesn't have to pay anything this is the first requirement the second requirement is sometimes we have also sales taxes included in the process and we want to charge only the sales tax to the customer in this this case in the sales order we also want to have a sales tax condition and this condition must be calculated on the price before that's count so in our example the total price is one thousand let's also say we have a sales output tax of 10 so in our sales order we want to see a sales tax condition for the value of 10 multiplied by 1000 which is 100 EUR after creating the sales order we proceed to The Next Step which is creating the outbound delivery and posting the goods issue and in the goods issue we have an accounting entry in the case of the standard sales process the accounting entry is a debit to cost of goods sold and accredited to the inventory account but in free of charge sales here we have a third business requirement which is to debit a different account than the standard cost of goods sold so for example we want to debate an expense account that we call free of charge cost or any other name that you want so we want to debit this account instead of the cost of good sales sold account so the financial entry will be a debit to free of charge expense or free of charge because of goods sold and the credit to the inventory account after boosting the goods issue we have two options either we proceed and we create a billing document or we end the process here and we don't create a billing document and this depends on the business requirements so now I will give you the most common requirements based on which we can choose how we will proceed with the process so the first requirement if in our business process we use costing based profitability analysis I have already created a full playlist explaining profitability analysis the difference between costing based and accounting based and margin analysis so if you don't know what is this please watch the margin analysis or the accounting business profitability analysis playlist I will leave you a link here now let's get back to our process so if we are using costing based profitability analysis this means that the productivity NS document is only created when we post the sales billing document so in this case we have to create the sales bearing document in order to update the numbers improvedability analysis but if we are using accounting based profitability analysis or margin analysis this means that any accounting entry we post is automatically transferred to profitability analysis which means that our Goods issue accounting entry has already been updated improved with the analysis so we may not need to create a billing documents so we can end the process after the goods issue but again there can be other business requirements now a third case is if we have the business requirement to send a billing document to the customer even if it is for a zero value then we must create a bidding document in order to print it but if we can end the process if we don't have the business requirement to print the billing document then we can end the process here another case is if we have a sales tax in the process as I explained in the sales order step and some customers ask for sales tax to be included in the free of charge orders in this case we must have the billing documents because the sales tax entry is only posted with the sales billing document and also we need a bidding document to print to send to the customer so he pays the value of the tax now I will proceed with the process assuming that we have to create the billing document in order to show you the accounting entry so after creating the outbound delivery and posting the goods issue we post the billing document and here we have the accounting entry in the case of the standard sales process the accounting entry is a debit to accounts receivable to the customer account and direct it to sales revenue and if we have sales taxes then we also have accredited to Output tax now in the case of free of charge sales we have also different cases based on whether we use the tax the sales tax or not now if we are not using any sales taxes then the accounting entry will be accredited to the sales revenue and a debit we cannot have a debit to the customer account because the customer is not going to pay anything so instead of having the customer account and debit we have the sales revenue account again so we have a debit and the credit to the sales revenue account so then it impact on sales revenue is zero because in this process we don't have any sales revenue or in some other cases the customers ask to have a debit to a separate expense account not the sales revenue so in this case we will have a debit to free of charge discount expense for example and I created two sales revenue in case we have sales taxes included and we want to charge them to the customer then the accounting entry will be a debit to the customer accounts receivable for the amount of the tax only and the accredited to Output tax for the amount of the tax and then again we have the same two lines I just explained so we have a debit to sales revenue and accredited to send the revenue or a debit to free of charge discount expense and accredited to sales revenue and this is it this is a summary of all the different business requirements I received in the free of charge process if you have any other requirements that I did not mention then please leave me a comment it will be very useful to me and very useful to everyone to explore the different business requirements before we actually face them in a real project so leave me a comment with any other requirements you have in the next video I am going to demonstrate all of this on saps for Hana so I will show you the free of charge till the process end to end with the different business cases that I just explained and I will also show you the different accounting entries also all the configuration steps needed for this process have already been updated to the elite documents Library so if you open the order to Cache configuration document you will find a separate section for free of charge sales where you can find all the different configuration steps I did in order to prepare the system for the demo so you can follow them in your system in order to be able to test the process yourself thank you for watching and I'll see you again soon