Get Your Free of Charge Invoice Sample for Enterprises

Free of charge invoice sample for enterprises

welcome to another video in the order to Cache playlist in the last video we discussed the free of charge sales process I explained the most important business requirements we receive in this process in our sap projects and also I explained all the related accounting entries in the video today I will demonstrate everything I explained in the last video on scps 400 2021 I will start by creating a sales order for a normal item that we sell free of charge and then I will I will create an outbound delivery post Goods issue and show you the accounting entry then post the billing and show you the billing accounting entry and I will also demonstrate both cases with and without sales tax without sales tax means the customer is not going to pay anything with sales tax means the customer has to pay the sales tax so it will be posted to his account and I will also show you how we can create one sales order that has one line item that is normally paid a standard line item and another line item that is free of charge foreign 2021 system for the demo today I had to do some configuration steps all the configuration steps I did you can find in the order to Cache configuration manual that I share with the elite members of the channel if you check here we have a menu for free of charge where I explained all the configuration steps I had to do to be able to run the demo today so you can do the same steps in your system to test the process on your own so this is available to the eight members if you would like to be an Elite member then I will leave you a link here you can check it to know the details now let's get back to our sep system so I will start by creating a sales order to sell a normal item but we will sell it free of charge to create the sales order the transaction is va01 here the order type I am using the completely normal order type O R so the process is actually same as selling a standard item so we are selling a normal product using then the standard order type for sales and the only difference is in the item category in the sales order and some other things I will show you now so first we have here the order type or then I have my sales organization distribution Channel 10 division zero zero then I will insert my customer and then customer reference let's say free of charge demo one and the required delivery date let's say 0 1 0 7 2023 and here we have the material so I'm using a completely standard material so this material is not a free material or something this is a completely normal product that I normally sell for a price but this time I'm going to sell it free of charge so I inserted the material code and then enter and let's say we are going to sell 100 items to the customer and then here is the first difference from the standard process but before I do this let me show you the sales conditions so so far this is a completely standard sales of process if we go here to the item conditions you can see that we have the price 16 and then we have the number of items is 100 so the total is 1 616 by 100 and then we also have some output text and we have our internal price so this is a completely normal sales process now let's do the first change so I will go back to the overview here and then if we go here to the right we have the item category and I'm going to change this to t a n n so this is the standard item category that's created by sap for free of charge once I insert the a n n and enter you get this message new pricing performed for item 0 10 okay and now if we go to the conditions we can see we have the price one one thousand six hundred and then we have the output tax and then we have a 100 discount here so as you see that's count is one thousand six hundred so now we have a price of 1 600 discount 1600 so then it is zero so the customer is not going to pay this amount and if you check here we have the net is zero but we also have the tax 112 because here we have seven percent tax let's make this ten percent to make it easy easier to calculate so now we have the tax 160. if I continue like this it means that the customer is going to pay only the taxes if I don't want the customer to pay tax or if in our case we don't have sales taxes then I will just click on the line remove it or let's go come here and insert zero and now we don't have any taxes so this is the case of course normally in the normal sales process you wouldn't be able to change the output text but I changed my configuration to make it manual in order to be able to demonstrate this easily without having to change the tax codes so here we have our output text is zero so let's proceed like this in this case the customer is not going to pay anything at all no taxes and no price so now let's go back and if I proceed like this so if we go here to the details and let's go to shipping first to insert my storage location so this is similar to The Standard Process 171b and then if we go here to schedule lines here we have something called the schedule line item category and this is what determines the movement type that will be used in the goods issue and the movement type is what determines what GL account will be used in our accounting posting when we post the goods issue I have already explained everything related to the material management account determination so the link between the movement type and the GL account I have already explained all of this in the playlist of material management account determination so I will go into the details but if we change the schedule line item the schedule line category here this can change the movement type that's used in the postal codes issue which can change the jail account that's used in the posting so the cost of goods sold account and as I explained in the last video most of the time the customer would ask to uh when I say the customer I mean the company that's implementing the sap they would ask to have a different account from cost of goods sold when they post free of charge so in this case I have defined here a new line schedule line category I called it Z1 and this one I mapped to the movement type 901 which will post to a different account from cost of goods sold let's proceed with the process and I will show you this so first you need to understand that if I keep this as CN then when we post the goods issue we will have the standard entry debit s of goods sold and the credit to a stock or maybe I should show you this so let I let's let's do this the video will be a little longer let me show you this uh so you can see the difference when we change the schedule line category so I'm keeping this SC and this is the standard item scheduled line category and then I'm not going to change anything else I will save and we have the order number is 661. now I click on sales order and the deliver so this is transaction vl01n and the shipping point is 1710 and here we I will choose selection date after our delivery date so let's say for example zero ten ten zero seven 2023 and here I will go to picking so we have storage location delivery quantity pick the quantity let's say 100 also and then post to go to the issue now to display the accounting entry let's go to outbound delivery display and then go to the document flow here so this is the material document display document so here we can see the movement type so the movement type is six zero one Goods issue delivery this is the standard process now if I go here to the accounting entry you can see the entry is credited to finish good stock and debit to inventory change cost of goods sold so this is the standard process here we posted s of goods sold it didn't go to a separate account that is made for free of charge why because we use the standard schedule line category now if I want to post to a separate account I will have to create another sales order with and use a different schedule line category so you can see this now let's go back and I will create another search order again so slash nva01 so it will be with the same details the same customers customer reference demo let's say two and deliberate it the same but the item is fg01 00 let's say 100 let's say 200 units this time so you can see the difference and then let's go here to their conditions so we can see the price the output text I will remove the text again make it zero so now the customer has to pay 3200 now let's go back and change the item category so T A and N new pricing performed now if we go again to conditions the customer doesn't have to pay anything for the items and we have the output tax is back because the pricing has been recalculated so I will make it zero again so 0 and 0 now the customer is not going to pay anything and let's go to shipping insert the storage location and go to schedule lines and this time I'm going to change this with the category that I configured for the demo which is that one and then save now again let's go to delivery so here's our search order selection date 10th of July okay pick the quantity 200. post request issue let's display the accounting entry go again to the current flow the material document display and here we can see the first difference so the first difference is if you go to the where tab the movement type is nine zero one so this is a movement type that I configured also for the demo and I mapped it to a different account key so it can post to a different GL account so here is the moving type and now if we go to the accounting entry we can see we have accredited to finish good stock and the debit goes to an account that I called free of charge customer console you can call it anything you want the important thing is this is a separate account from the standard cost of goods sold and you can use it anywhere you want in your financial statements so there is our business first business requirement okay now let's go back and post the billing document to post the billing slash nvf01 it is out outbound delivery number enter so now if we check here the conditions we can see the customer is not going to pay anything but again the output price is back so I will remove it again make it zero so I here the customer is not going to pay anything here and it's not going to pay any taxes weekend after this cancel the billing document and repost it with text so we can see both business cases to save your time so anyway now if we post the billing document like this the customer is not going to pay anything so let's post and display the accounting entries through building documents display and then go to accounting accounting documents and the accounting entry is a debit to revenue domestic product products and accredited to revenue domestic products so as I explained in the last video we can have both the discount and the sales price posted to the same sales account so this way we have no impact on our sales revenue because in this case we don't actually have any sales revenue or we can configure the system to post the debit line to a separate discount expense discount account I have already explained how we can configure the account determination for sales conditions in the sales and distribution account determination playlists I know that I I mentioned this a lot but I have really explained this in details so there is a playlist for mm account determination another playlist for snd account determination where this was all explained so in order you can easily configure sap to post the discount to a separate account okay so here's our second business requirements as you see here there is nothing posted to the customer account so the customer is not going to pay anything now let's go back and insert some texts so we can see the impact on our accounting entry so I'm going to reverse this billing document or cancel so here let's go to cancel and then enter so it will be canceled post so now the billing document has been canceled let's post it again with taxes this time so go back to the f01 and I have lost the outbound delivery number so let's go and get it so vl03 and here is our outbound delivery number insert it here enter let's go back to conditions now this time I'm going to keep that X so if I post like this the customer should be charged for 224 USD for the taxes now let's post and again display the accounting entry accounting document so now as you see we have first a debit to receivable domestic to the on the customer account of 224 and then we have accredited to the sales tax accrued for 224 and then we have the two lines for Revenue domestic products for the sales price and the discount the same two lines that were in the last entry so now you understand how we can configure the process to uh to satisfy all the business requirements we have in the free of charge uh sales process before ending the video I forgot that I promised you that I'm going to show you how to create a sales order with one line item that is normally paid by the customer and another item that's free of charge so let's get back to our sales order creation slash nva01 and here we have the order type and again the same details then here insert the customer reference demo 3 required delivery date and here the material is fg01 so this time I'm going to create two lines one line that's free of charge and one line that's paid so the line that's free of charge let's say it will be for 50 units and this one is going to be with the item category T A and N and then the second line is also for the same material if you use 0 1 but let's say this one is for 1 000 units okay and this one this one I will keep with the item category TN so now you understand how this will proceed very simple so now let's go to the details of the first item go to shipping insert the storage location go to schedule lines change the schedule line to Z1 so this is the free of charge item and then go to conditions and here we can see that the customer is not going to pay anything for the price he will only pay that taxes this is fine now let's proceed to the second item 20. so this one is also going to be from the same storage location and then if we go to schedule lines I will keep it CN because this is a standard item and if we go to conditions we can see that the customer is going to pay the total value and also the total value of the items and also will pay the taxes so now everything is okay let's save let's deliver this sales or this the sales document so go to sales document delivers again we have the same details so we have here two items two line items so depictive quantity is 50 and 1000 then supposed to go to the issue now if we check the accounting entry we will have both we'll have custom goods sold and also the free of charge account so let's go to fi documents accounting documents and here as you see we have FG stock credit and if you stock credit so one for each line item for the first one it will be posted to the free of charge because of goods sold the second one will be posted to the normal course of goods sold very nice now let's go back and post the billing document vf01 so here is our outbound delivery here are the two items post now if we check the billing document accounting entry we can see here the receivables domestic is for this amount so this is the value for the items that are going to be charged to the customer plus the sales tax that is on the free of charge items plus the sales tax that is on the paid items so here we have the customer is going to pay 17 000 something we have Revenue domestic products credits for this amount and we have Revenue domestic product debit for the value of the free of charge items and we have two lines for output tax this is it now we understand how to run the process to satisfy all the business requirements for the free of charge daily process if you have any other business requirements in this process that I have not explained and I have not demonstrated then please leave me a comment I would be very happy to create other videos explaining the requirements and also demonstrating them and if you have any questions don't forget to leave me a comment also if you would like to see the configuration steps I did to be able to run the process like this then you can check the configuration manual I share with the elite members also don't forget to check the other playlists the material management account determination the sales and distribution account determination and there are many other playlists available on the channel also don't forget to check the other videos in the order to catch playlist let me know if you have any questions or comments thank you for watching thank you for your time and I'll see you again soon