Procedure for purchase and sale of Revenue stamps

                  Business process:

         Revenue stamps of face value Re. 1 are procured by DoP from District or taluk state treasurer at a cost of Re. 0.90, only after the payment being made in cash/ cheque. The revenue stamp thus procured is sold to
customers at a price of Re. 1. The cost of Re. 0.90 will be recouped after the sale across counter and the difference of Re 0.10 is revenue for DoP from sale of each stamp which will be taken to 1201 major head.

CSI Process 

        In CSI system revenue stamps are treated as stock items and sold across the counter in POS. The revenue of Re. 0.10 is realized upon such sale.

Purchase of Revenue Stamps from District/Taluk State Treasurer:


Vendor codes need to be created for every district/taluk & State Treasurer for raising purchase order & payment of advance for purchase of revenue stamps using T Code XK01.

Domestic Purchase order with document type ZDOM has to be raised against District Treasury vendor (created in step a) for revenue stamps (Material Code – RVS100)

Cost of each revenue stamp will be Re 0.90.

Advance payment will be done in AP Module –

When advance payment is made to Vendor then it is done through Special GL Indicator. A new Special GL Indicator needs to be created for handling advances to treasury vendor. Advance to vendor can be through Cheque or Cash. DoP to provide the GL account in which this advance amount will be posted. Transaction code to be used for giving advance to vendor will be F-48. The accounting entry posted will be:

Advance Payment by Cheque:

District Treasury Vendor Account (Special GL Indicator)   Dr 90
Drawings Bank Clearing Account Cr 90


Advance Payment by Cash:

District Treasury Vendor Account (Special GL Indicator)   Dr 90
DoP Cash Account                 Cr 90

Goods Receipt (T code MIGO) against purchase order (created in step b) has to be performed to update stock of revenue stamps

Accounting Entries during goods receipt. Let us take 100 Stamps are purchased at rate of Rs 0.90 per stamp  : 

Revenue Stamp Stock Account       Dr 90
GR/IR Clearing Account     Cr 90

Verification of bill received from District Treasury in transaction code MIRO

Accounting Entries during invoice receipt : 

              GR/IR Clearing Account      Dr 90
District Treasury Vendor Account   Cr 90

Advance payment settlement

As advance payment is made to the vendor payment settlement will take place is 2 steps

First transaction code F-54 will be used to transfer the advance amount from Special GL Indicator to normal vendor account. The accounting that will be posted is:

District Treasury Vendor Account  Dr 90
District Treasury Vendor Account (Special GL Indicator)   Cr 90

Second Transaction Code F-44 will be used to clear the Advance Transfer Posting document and the Invoice Document created by the purchase order cycle.





Sales process of Revenue Stamps:

The revenue stamps procured from district/taluk state treasury will be sold across the counter in POS system at a price of Re. 1.00.
The data then flows to SAP system where sales order will be created for revenue recognition, PGI happens for the stamps delivered customer and the incoming payment document will be posted against the payment taken from customer at POS counter.
The accounting entry for revenue recognition will be:
Customer Account Dr 1.00
Revenue stamp account Cr 0.90
Commission account Cr 0.10
The accounting entry for incoming payment will be:
POS Cash account Dr 1.00
Customer Account Cr 1.00