Consignment Accounting

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Praveen Pandit (Querist)
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17 February 2010 Dear Sir
i want to know the accounting entry of problem given below

problem- we have sent 29.510 mt material sent to consignment agent but out of that 13.155 mt material stolen in transit.(Note - excise duty involved material)

CA Chitresh Gupta

CA Chitresh Gupta (Expert)
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17 February 2010 Loss in Transit Dr.
Inventory Cr.

shakuntala chhangani

shakuntala chhangani (Expert)
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22 February 2010 Dear friends, note the following entries in case of consignment :
1. When the goods are sent on consignment:
Consignment A/c Dr. XX
To goods sent on consignment A/c XX
2. When exp. incurred by consignor on above :
Consignment A/c Dr. XX
To Cash / Bank A/c XX
3. When exp. incurred on above by consignee :
Consignment A/c Dr. XX
To Consignee's A/c XX
4. When goods lost in transit :
Goods lost in transit A/c Dr. XX
To Consignment A/c XX
Since loss in transit in an abnormal loss, it will be credited to consignment account in the same manner as we credit goods lost by fire to trading a/c so as to get normal GP. It will be valued at cost + exp. of consignor (proportionate).
Regards, CA Shakuntala Chhangani

Praveen Pandit

Praveen Pandit (Querist)
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22 February 2010 Dear sir
Can u tell me how to passed below entry in SAP with effect of Inventory Qty. and amount

(note - Inventory account is only internal posting )

Loss in Transit Dr.
Inventory Cr.

shakuntala chhangani

shakuntala chhangani (Expert)
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23 February 2010 Dear praveen, pls don,t change my gender n use ms. in ur next communication. whatever is the balance in goods sent on consignment a/c, it will be transferred as :
Goods sent on consignment A/c Dr. XX
To Trading / Purchase A/c XX
this entry is always passed at cost. it reduces the amount of inventory. In case u have any further doubt, revert back to me. Regards, CA Shakuntala Chhangani

Praveen Pandit

Praveen Pandit (Querist)
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23 February 2010 Sorry Mam
but i want only entry in SAP and process

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