SAP has developed functionality called Purchase Account Management to

handle related legal requirements. In Belgium, Luxembourg, Spain, Portugal, rance,

Italy, and !reece, you must use speci"c statutory #legal$ !%L accounts to report the
acquisition costs of materials that are put on stoc&. 'hese accounts are then used in
statutory reporting. All companies registered in those countries must follo( this
requirement if they use (hat is called periodic inventory. In these systems, changes
in the stoc& are only recorded in the pro"t and loss statement, (hich means that
the stoc& value is not &ept up to date on the balance sheet. At the end of a period
#month, quarter, but normally a year$, the company ta&es an inventory and ma&es a
posting to correct the stoc& value on the balance sheet. 'he posting loo&s li&e a
stoc& account against a purchase account.
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Basic concept of Purchase Account Management:
When you procure a material & purchase management is active the accounts are triggered in the
Goods receipt accounting document.
If the P is raised for material for say !"" I#$ then At the time of G$
the accounting postings happen
%e&it ' Inventory Account ' !""
(redit ' G$)I$ clearing account ' !""
%e&it ' Purchase Account ' !"" *+I#,
(redit' Purchase offsetting account '!"" *+-G, *this triggers for &alancing the %ocument ,.
.hese /ill trigger /hen you activate the Purchase account management in the (ompany code
0P$'. IMG'1 Materials Management'1 2aluation and Account Assignment'1 Account
%etermination'1 Account %etermination Without Wi3ard'1 Purchase Account Management'1
Activate Purchase Account in (ompany (ode
set purcahse account and o)setting account in *I+ and *,! in -B./ and chec&
accunting entries
SAP Purchase Accounting
Purchase Accounting:
.he Purchase Accounts Posting 0ystem allo/s you to manage a company4s &udget and e5penses.
It is a sensitive definition in the sense that once it4s activated and 6ournal entries have &een
created it cannot &e updated. Purchase accounts posting system has to &e activated. Purchase
accounts help you get the details of all the purchases made in a period7 typically re8uired to some
legal reporting in these countries companies need to present a purchase ledger for statutory
reporting. Purchase accounting is a legal re8uirement for $oman countries li9e Belgium7 :rance7
Portugal7 spain. .hese countries need to present a purchase ledger for statutory reporting.
In companies /hich manage a continuous stoc9 system7 it is no/ possi&le to use the Purchase
Accounts Posting 0ystem. .his option includes the recording of e5pense accounts in 6ournal
entries created automatically due to purchasing documents /hich affect the inventory valuation:
A)P Invoice *not &ased on a Goods $eceipt P,7 A)P (redit Memo7 Goods $eceipt P and Good
$eturns.
Purchase accounting in 0AP /ill not give desired results if su& contracting activities are
involved. :or settlements of su&contracting transactions7 the system does not post to the purchase
account nor to the purchase offsetting account.
Purchase account: When an A)P invoice or a goods receipt P is created; the purchase account is
recorded in the 6ournal entry along /ith the same amount that is recorded for the stoc9 account.
Purchase return account: When a goods return or an A)P credit memo is created7 this account is
recorded in the 6ournal entry along /ith the same amount that is recorded for the stoc9 account.
Purchase offset account: .his account is an offsetting account for purchase account or purchase
return account.
Purchase accounts can &e updated in the follo/ing /ays:
At the receipt value: In this case7 the e5act amount posted at goods receipt to the G$)I$ clearing
account is posted to the purchase account. In Invoice 2erification7 the system only posts to the
purchase account if there is a price difference. .he system posts this difference to the stoc9
account or to a price difference account7 the sum of these t/o postings is posted to the purchase
account.
At the stoc9 value: In this case7 the e5act amount posted at goods receipt or at invoice receipt is
posted to the purchase account. In Invoice 2erification7 the system only posts to the stoc9
account < and therefore to the purchase account and to the purchase offsetting account < if the
invoice item meets the follo/ing conditions:
A price variance has occurred
.he material is su&6ect to moving average price control
0toc9 e5ists for the material
0imilar to the purchase account7 a freight account e5ists for documenting delivery costs that have
&een posted for e5ternally procured materials. If purchase account management is active7 the
system automatically carries out the additional postings.
Purchase order: ="" pieces material A at >="."" )piece planned freight costs >!""
Goods receipt: ="" pieces
Invoice: ="" pieces material A at > == )piece plus freight costs *> =="" ? > !@" A > =B@",
Goods receipt Invoice receipt
0toc9 account =!"" ? =@" ?
G$)I$ clearing account =""" ' =""" ?
:reight clearing !"" ' !"" ?
2endor account =B@" '
Purchase account =""" ? ="" ?
:reight account *purchasing, !"" ? @" ?
Purchase offsetting account =!"" ' =@" <
What are the transactions /hich /ould have the Purchase Accounting +ntriesC
.ransaction (ode BD(
.ransaction +I# E Purchasing account
Purchase (onsuma&les
Purchase
Purchase $eturns (onsuma&les
Purchase $eturns
.ransaction +-GE Purchase offsetting account
Purchase (onsuma&les offsetting account
Purchase Polished offsetting account
Purchase $ough offsetting account
.ransaction :$+E Purchase :reight account
Purchase (onsuma&les :reight +5penses
Purchase :reight +5penses
Purchase $eturns (onsuma&les :reight +5penses
Purchase $eturns :reight +5penses