How do you configure special GL Transaction in SAP FICO ?
You configure Special GL transaction in SAP FICO by defining special GL indicators.
These settings are maintained in the customizing menu.
In this chapter, we look at Special GL Transactions and how to disclose Special GL transactions in SAP R/3 using alternative reconciliation accounts.
- At the end of this activity, you will be able to:
- Configure Special GL Transactions.
- Define various types of Down Payments (i.e., Down payment Made, Received, and Requested).
- Define Tax Clearing Account for Down payments.
- Explain various Special GL Transactions, including Down Payments (Down payment request, down payment made, and down payment received), Other Special GL Transactions such as Guarantees, noted items, Free Offsetting Entry, and Automatic Offsetting Entries.
Special G/L Transactions
Before looking at special GL transactions in detail, it is important to first look at what are General Ledger (GL) and GL Reconciliation Accounts?
GL accounts strictly adhere to the basic accounting principle of Debit and Credit – double entry bookkeeping. In SAP, transactions relating to Account Receivables (AR) and Account Payables (AP) are posted to sub-ledgers defined in the system. The totals of sub-ledgers are automatically posted to reconciliation accounts. The advantage of a reconciliation account is to provide a quick snapshot of subledger balances as totals in order to be able to draw-up a financial/income statement easily. Secondly, to also be able to determine the totals of receivables and payables for a given period, the balances of reconciliation account can be quickly called up, instead of having to go through numerous subledgers, which may be time consuming.
Therefore, reconciliation accounts are summaries of subledger accounts. It is important to specify the reconciliation account to be posted during the creation of payables/receivables in customers/vendors master record in the company code segment.
Special GL transactions are part of AR and AP transactions. Due to their nature and disclosure in the financial report, they are displayed separately in the general ledger and subledgers.
Reconciliation account is defined in the subledger account. This links the subledger to the General ledger. Subledger accounts with special GL transactions are assigned using a special GL indicator; this makes postings to alternative reconciliation accounts (special GL accounts) possible. Hence separate disclosure.transactions.
Special GL transaction include down payments, bill of exchange, and other transactions. In SAP S4 HANA, special G/L transactions can be distinguished between business relationships and technical factors. This is represented in Figure 16-1.
Figure 16-1. The distinctions between the special G/L transactions according to their relationships and technical factors
Special GL transactions include:
1) Down payments.
2) Bill of exchange.
3) Other Transactions (Guarantees).
Special GL - General Ledger types
Special GL transactions can be looked at under three headings based Special GL types and variability according to their relationship with the main ledger
1. Automatic Offsetting Entry
A typical example of Automatic Offsetting Entry is guarantee of payments. They are termed as statistical postings because they are not displayed in the financial statements. They are only displayed as notes to the financial statements. Since they form part of automatic offsetting entries, entries are made in the same offsetting account. The offsetting entries account is defined in IMG; this makes it possible for the system to make automatic offsetting entries. Once an open item is cleared in the account, the system will carry out automatic clearing to clear related items simultaneously in the offsetting account.
2. Noted Items
Examples of noted items are down payment requests, bill of exchange payment requests, etc.
Noted items have no impact on the GL because no posting is made to the GL. It is purely for information purposes, which serves as a reminder. When a down payment request exists on an account, during payment posting, the system will automatically reminds the user that a down payment request exists on the account. No open item balance check is made with noted items and offsetting entry is not needed. Only one line item is updated when a noted item is created.
A noted item is treated as an open item in the system, hence line item should be activated. It is also possible for the payment program and dunning program to access noted items for further processing.
3. Free Offsetting Entry
An example of free offsetting entry is down payment received. Depending on the type of posting involved, free off setting entry generates a proper posting in the general ledger since is it part of accounts receivable/payable. Special GL transactions relating to Free Offsetting Entry will automatically debit or credit special GL reconciliation accounts once it occurs.
Configuration of Special GL Transactions.
In this activity, you will only be looking at down payment made, down payment received, and guarantees.
No further configurations are needed for bill of exchange and other special GL transactions. The settings for these items supplied by SAP in the system relating to country specific settings are sufficient.
Down Payments
Introduction
There are typically two types of down payments:
• Down payment made.
• Down payment received.
Down payments are short-term finance. This is a usual business practice for either a customer or vendor to obtain a short-term finance without having to pay interest on down payment. This is normally the case in a situation where, for example, a manufacturer may not be able to finance production alone and as a result may request down payment before a production begins or during, after or after partial completion of production.
It is an accounting practice to separate down payments from the normal business receivables and payables balances and display them separately in the balance sheet.
There are several factors that give rise to down payments during a normal course of a business. For example, payable or receivable arising from either the purchase of an asset or from providing a service.
Down payments are disclosed on the balance sheet either as assets or liabilities. If the transaction is a receivable, it is treated as an asset and debited accordingly. On the other hand, if the down payment is payable, it is a liability and it is credited on the balance sheet.
Upon the delivery of goods or the performance of services of which down payment were made, the accounts involved needs to be cleared and the down payment will no longer be displayed on the balance sheet.
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Note Before you commence with the integration of Down payments, it is advisable to create the appropriate G/L accounts that will be needed in your configurations. Tto do this, please refer to Chapter 5 on how to create G/L accounts
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Down Payment Received
This an advance payment made to you by your customer for the provision of goods or services. As mentioned earlier, down payment is a sort of financing.
Reconciliation Accounts for Customer Down Payments
In this activity, you will define customer down payments that are managed in GL. The settings you specify will make it possible for the system to automatically post down payment transactions to a special GL reconciliation account instead of the normal receivable GL reconciliation account.
Problem: As part of accounting policy, Company C900 plc wants to be able to post Customer Down Payment to a special Reconciliation Account, instead of the normal Customer Reconciliation Account. You are to define Reconciliation Accounts for Customer Down Payment for Spoxio Inc.
ADVANCE PAYMENTS (DOWN PAYMENTS):
Process Steps:
1. Create Advance from Customers Account FS00
2. Link Sundry Debtors A/c with Advance from customers A/C OBXR
3. Advance Receipt Posting F-29
4. Check Customer line item Report FBL5N
5. Sales Invoice Posting FB70
6. Check Customer line item Report FBL5N
7. Transfer Advance To Sales Invoice F-39
8. Check Customer line item Report FBL5N
9. Clearing Of Normal Item F-32
10. Check Customer line item Report FBL5N
1. Create Advance From Customers Account – FS00
GL Account Number =
Company Code =
Click on “With Template Button”
GL Account Number =
Company Code = Press Enter
Account Group = Current Liabilities and Provisions
Change Short / Long Text = Advance From Customers
2. Link Sundry Debtors A/c with Advance from customers a/c
Path SPRO – Financial Accounting – A/cs Receivable & A/cs Payable – Business
Transactions – Down payment received – Define Customer Reconciliation A/c for
Down Payments
Tcode OBXR
Double click “Down payment”
Chart of accounts = Press Enter
Reconciliation account = (Sundry Debtors A/C)
Special GL account = (Advance From Customers A/C)
Click on Save
To define the reconciliation accounts for down payments, follow this menu path: IMG: Financial Accounting➤ Accounts Receivable and Accounts Payable ➤ Business Transactions ➤ Down Payments Received ➤ Define Reconciliation Accounts for Customer Down Payments.
The Maintain Accounting Configuration: Special G/L List screen is displayed. Containing the list of possible Special G/L Transactions (Figure 16-3).
Select Down Payment (SP.G/Lind. A) from the list by clicking on it to select it and click Choose at the top left of the screen. The Chart of Accounts Entry dialog Box pops-up. Enter your Chart of Accounts ID (CA10) in the Chart of Accounts field and click Continue at the bottom right of the dialog box.
The Maintain Accounting Configuration: Special G/L - Accounts screen is displayed (Figure 16-4). Enter G/L Account – 119000 in the Reconciliation Account field and enter the Special G/L Account – 170000 in the Special G/L Account field. Enter Output tax type – A in the Output tax clearing field.
Update the following fields:
Recon. acct: Enter the G/L reconciliation account for clearing down payment (we used 119000 as our reconciliation account in this activity) in this field.
Special G/L account: Enter the G/L for advance customer payment (we used 170000 in this activity) in this field.
Output tax clearing: Enter A (output tax type) in this field. This specification allows the system to post tax elements arising from down payments to the output clearing account. SAP comes with two tax types: A for output tax and V for input tax. You can access these tax types by using the match code or search function that appears when you click on the Output tax clearing field.
The next step is to check the defaulted specifications in the system for your Special G/L payment properties to see if the setting meets your requirement. To do this, click Properties (this is the third item from the top left of the screen).
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Note SAP normally comes with preconfigured settings for Special G/ properties. Check the Special G/L specifications provided by the system to make sure that it meets your need
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Save your work.
The next step in this activity is to define down payment request for customers.
3. Advance Receipt Posting - F-29
Path Accounting – Financial Accounting – Accounts Receivable – Document Entry –
Down Payment
Tcode F-29
Document date = Type = Company Code=
Posting date = Currency =
Customer:
Account = Special GL indicator=
Bank:
Account = business area=
Amount =
Text = Press Enter
Amount = *
Text = + Click on save
Go to Menu, Document, click “display” and note the document
4. Check Customer Line Item Report
Path Accounting – Financial Accounting - Accounts Receivable - Account -
Display/Change Line items
Tcode FBL5N
Customer account no =
Company code =
Select O open items
Type:
Select O special GL transactions
Lay out =1 SAP (standard)
Click on “execute” icon and observe the document status
Add “G/L Account” to Layout and Save
5. Posting Of The Sales Invoice -TC -FB70
Path Accounting- Financial Accounting - Accounts Receivable - Document Entry –
Invoice
Tcode FB70
Edit -> Company Code = Press Enters
Customer =
Invoice Date = Posting date =
Amount = Currency =
Text = Press Enter
Items:
G/L Account = Amount =
Text = +
Busin.Area = Press Enter
Click on simulate button and
Click on save to Post
6. Check Customer Line Item Report
Path Accounting – Financial Accounting - Accounts Receivable - Account -
Display/Change Line items
Tcode FBL5N
Customer account no =
Company code =
Select Open items check box
Open at key date =
Type:
Select special GL transactions Checkbox
Lay out = 1SAP(standard)
Click on “execute” icon and observe the document status.
Click on back arrow
Type:
Select Normal Items Check Box
Click on “execute” icon and observe the Report
7. Transfer Advance To Sales Invoice
Path Accounting-Financial Accounting-Accounts Receivable-Document Entry-Down
Payment-Clearing
Tcode F-39
Document date = Type = Company Code=
Posting date = Currency =
Customer:
Account =
Invoice Ref: =
Text =
Click on “process down payments” button
Transfer posting = Click on save
Go to Menu, document, click on “display” and note the document.
8. Check Customer Line Item Report
Path Accounting – Financial Accounting - Accounts Receivable - Account -
Display/Change Line items
Tcode FBL5N
Customer account no =
Company code =
select open items checkbox
Open at key date =
Type:
Select O GL transactions
Lay out =1SAP (standard)
Click on “execute” icon and observe the document status
Click on back Arrow
Type:
Select O normal items
Click on “execute” icon and observe that both documents are pending Open Items
9. Clearing Of Normal Item
Path Accounting-Financial Accounting-Accounts Receivable-Account-Clear
Tcode F-32
Account = (customer account no)
Click on “process open items”
Double click on both the line items
Click on save
10. Check Customer Line Item Report
Path Accounting – Financial Accounting - Accounts Receivable - Account -
Display/Change Line items
Tcode FBL5N
Customer account no =
Company code =
select open items check box
Open at key date =
Type:
select GL transactions checkbox
Lay out =1SAP (standard)
Click on “execute” icon and observe the document status
Click on back Arrow
Type:
Select O normal items
Click on “execute” icon and observe the document status
Down Payment Requests (Customer)
As mentioned above, Down Payment is a form of short-term finance, and it could also engender commitment from customers, especially in a situation where the integrity of the customer is in question. Down payment request is a normal business practice where an advance payment is requested in full or partially prior to commencement of a business transaction.
Defining Reconciliation Accounts for Customer Down Payments Request
To define the reconciliation accounts for customer down payment request, follow this menu path: IMG: Financial Accounting ➤ Accounts Receivable and Accounts Payable ➤ Business Transactions ➤ Down Payments Received ➤ Define Reconciliation Accounts for Customer Down Payments
The Maintain Accounting Configuration: Special G/L List screen is displayed. Containing the list of possible Special G/L Transaction. Select Down Payment Request (SP.G/Lind. F) from the list by clicking on it to select it and click Choose at the top left of the screen. The Chart of Accounts Entry dialog Box pops-up. Enter your Chart of Accounts ID (CA10) in the Chart of Accounts field and click Continue at the bottom right of the dialog box.
The Maintain Accounting Configuration: Special G/L - Accounts screen is displayed (Figure 16-6).
Enter G/L 119000 in the Reconciliation Account field and Payment requests (Customer) – 196000 in the Special G/L account field. Enter planning level FF (Down Payment Request) in the Planning level field.
Click the Properties function at the top of the screen to check the defaulted specifications in the system for your Special G/L payment properties to see if the setting meets your requirement. To do this, click Properties (this is the third item from the top left of the screen).
Save your settings.
The final step in defining customer down payments is to define the tax clearing account.
Noted Items Scenario:
1. Create Gl Account Master Record For "Down Payment Requests - Customers."
GL Account Number =
Company Code =
Click on “With Template Button”
GL Account Number =
Company Code = Press Enter
Account Group = Current Liabilities and Provisions
Change Short / Long Text = Advance From Customers
Click on Save
2. Link Sundry Debtors a/c with down payment requests - customers a/c
Path SPARO - Financial Accounting Accounts Receivable and Accounts Payable -
Business transactions - Define alternative reconciliation a/c for down payment
Tcode OBXR
Double click on “special GL indicator
F" down payment requests
Chart of accounts = Press Enter
Reconciliation account = (sundry debtors a/c)
Special GL account = (down payment request - customers)
click on Save
3. Posting of down payment request to customers.
Path Accounting - Financial Accounting -Accounts receivable - Document entry -
Down payment-request
Tcode F-37
Posting date = Currency / Rate =
Customer Account= (customer account number)
Targeted Spl. GL indicator = A
Amount =
Due on =
Text =
Click on Save
4. Display of customer line items
Path Accounting – Financial Accounting - Accounts Receivable - Account -
Display/Change Line items
Tcode FBL5N
Customer account =
Company code =
Select open items check box
Open at key date =
Select noted items Checkbox
Lay out = 1SAP
Click on "execute”.
Observe that the down payment request to the vendor is shown as open item.
5. Posting of the down payment received against down payment request
Path Accounting – Financial Accounting - Accounts Receivable - Document Entry -
Down Payment
Tcode F-29
Document date = Type = Company Code =
Posting date = Currency =
Account = (customer Number)
Special GL Indicator = A
Bank A/C =
Text =
Click on "requests” button
Select the "request line”
Click on "create down payments" button Click on Save
6. Check Customer Line Item Report
Path Accounting – Financial Accounting - Accounts Receivable - Account -
Display/Change Line items
Tcode FBL5N
Customer account =
Company code =
Select open items Checkbox
Open at key date =
Select noted items Checkbox
Lay out = 1SAP
Click on "execute”.
Observe the status of down payment request to the customer
7. Customer Invoice Posting
Path Accounting- Financial Accounting - Accounts Receivable - Document Entry –
Invoice
Tcode FB70
Edit -> Company Code = Press Enters
Customer =
Invoice Date = Posting date =
Amount = Currency =
Text = Press Enter
Items:
G/L Account = Amount =
Text = +
Busin.Area = Press Enter
Click on simulate button and
Click on Save to Post
8. Check Customer Line Item Report
Path Accounting – Financial Accounting - Accounts Receivable - Account -
Display/Change Line items
Tcode FBL5N
Customer account no =
Company code =
Select open items Checkbox
Open at key date :
Type:
Select special GL transactions Checkbox
Lay out = 1SAP (standard)
Click on "execute” icon and observe the document status.
Click on back arrow
Type:
normal items
Click on "execute” icon and observe the document status.
9. Transfer advances to sales invoice – F-39
Path Accounting – Financial Accounting - Accounts Receivable - Document Entry -
Down Payment - F-39 - Clearing
Tcode F-39
Posting date = currency =
Customer: Account =
Invoice Ref =
Text =
Click on "process down payments” button
Transfer posting =
Click on
Go to Menu, document, click on "display” and
note the document.
10. Check Customer Line item Report
Path Accounting – Financial Accounting - Accounts Receivable - Account -
Display/Change Line items
Tcode FBL5N
Customer account no =
Company code =
Select open items Checkbox
Open at key date
Type:
Select Noted GL transactions Checkbox
Lay out =1SAP (standard)
Click on "execute” icon and observe the document status
Type:
Select normal items Checkbox
Click on “execute" icon and observe the document status
11. Clearing of normal item
Path Accounting – Financial Accounting - Accounts Receivable - Account - Clear
Tcode F-32
Click on “process open items"
Double click on both the line items
Click on Save
12. Check Customer Line item Report
Path Accounting – Financial Accounting - Accounts Receivable - Account -
Display/Change Line items
Tcode FBL5N
Customer account =
Company code =
Select open items Checkbox
Open at key date =
Click on “Execute”
Defining Account for Tax Clearing (Down payments Customer)
The tax entered for down payment will be posted to the tax clearing account you defined in this activity and the tax rate typically depends on your company code country’s legal specifications. To define the account for tax clearing, follow this menu path: IMG: Financial Accounting➤ Accounts Receivable and Accounts Payable ➤ Business Transactions ➤ Down Payments Received ➤ Define Account for Tax Clearing.
The Configuration Accounting Maintain: Automatic Posts – Procedures screen comes up, displaying a list of procedures provided by SAP in the system. From the Procedure list, Select Output tax clearing on down payments – MVA by clicking on it and click Choose at the top left of the screen. The Chart of Accounts Entry dialog screen pops up. Enter your Chart of Accounts ID (CA10) in the Enter Chart of Account field and click Continue at the bottom right of the dialog box. The Configuration Accounting Maintain: Automatic Posts – Rules comes up. Select the Output tax clearing checkbox in Accounts are determined based on section of the screen and then click the Save button at the bottom right of the screen.
The Configuration Accounting Maintain: Automatic Posts – Accounts screen is displayed (Figure 16-7).
Figure 16-7. Specifying the output tax type and account for output tax clearing for customer down payments
Enter Output Tax type – A in the Output Tax type field and enter the appropriate G/L Account for Output tax clearing on down payments (We used 170010 as our G/L account in this activity) in the Account field.
Save your work.
Down Payment Made
Down payment made is an advance money you pay to your vendor as a down payment in anticipation of receiving goods or services at a future date. For example, you might make a down payment on your current assets.
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Note Before you carry out the customization of down payment made, make sure that you have created the appropriate G/L accounts for alternative reconciliation account for Down payments.
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Reconciliation Accounts for Vendor Down Payments
Problem: As part of Spoxio Inc. accounting policy, the Spoxio Inc. accounting team wants to be able to post vendor down payments to a special reconciliation account, instead of the normal vendor reconciliation account. Your task is to define the reconciliation accounts that vendor down payments will be posted in.
Advance payments (Down Payment)
‘---------------------------------------------------------------------------------------------
1.Down Payment Paid
Vendor A/c Dr 29 A 1000
To Bank A/c Cr 50 1000
‘--------------------------------------------------------
1. Posting of Purchase Invoice
Inventory RM A/c Dr 40 1000
To Vendor A/c Cr 31 1000
‘--------------------------------------------------------
2. Transfer Down Payment to Normal Reconciliation A/c
Vendor A/c Dr 1000
To Vendor A/c Cr 39 A 1000
‘---------------------------------------------------------------------------------------------
1. Create Advance to Vendors GL A/c
Path Accounting → Financial Accounting → General Ledger →Master
Records→ Individual Processing → Centrally
Tcode FS00
Check GL Account Group – OBD4
GL Account Number =
Company Code =
Click on With Template
GL Account Number =
Company Code = Press Enter
A/c Group = Current Assets Loans & Advances
Short/Long Text = Advance To Vendors
Click on Save
2. Link Between Sundry Creditors and Advances to Vendors – TC – OBYR
Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-
->Business Transactions-->Down Payment Made-->Define Alternative
Reconciliation Account for Down Payments
Tcode OBYR
Double Click “Down payments on Current Assets”
Chart of Accounts =
Reconciliation Account = (Sundry Creditors)
Special GL A/c = (Advance to Vendors A/c)
Click on Save
3. Advance Payment Posting
Path Accounting – Financial Accounting – Accounts Payable – Document
Entry – Down Payment – Down Payment
Tcode F-48
Document date = Company Code =
Posting date =
Account = (Vendor Number)
Special GL Indicator = A Click on "Enter"
Bank A/c =
Amount =
Text =
Menu, Document, Simulate and Click on Save
Note: Special GL indicator “A” is available by default, no need to create.
In this activity, you will define Vendor down payments that are managed in GL. The settings we specify here will make it possible for the system to automatically post down payment transactions to a special GL reconciliation account instead of the normal receivable GL reconciliation account.
To define alternative reconciliation accounts for down payments, follow this menu path: IMG: Financial Accounting ➤ Accounts Receivable and Accounts Payable ➤ Business Transactions ➤ Down Payments Made ➤ Define Alternative Reconciliation Account for Down Payments.
The Maintain Accounting Configuration: Special G/L List is displayed (Figure 16-8).
To specify the special G/L account that down payment transactions will be posted in, select Down Payments Current Assets (SP.G/Lind. A) from the list by clicking on it to select it and click Choose at the top left of the screen. The Chart of Accounts Entry dialog Box pops up. Enter your Chart of Accounts ID (CA10) in the Chart of Accounts field and click Continue at the bottom right of the dialog box.
The Maintain Accounting Configuration: Special G/L - Accounts screen is displayed (Figure 16-9).
Update the following fields:
Recon. acct: Enter the G/L reconciliation account for clearing down payment for vendor (we used 213000 as our reconciliation account in this activity) in this field.
Special G/L account: Enter the G/L for advance vendor payment (we used 159000 in this activity) in this field.
Output tax clearing: Enter V (input tax type) in this field. This specification allows the system to post tax elements arising from down payments to the input clearing account.
Save your settings.
The next step is to check the defaulted specifications in the system for your Special G/L payment properties to see if the setting meets your requirement. To do this, click Properties (this is the third item from the top left of the screen). The Maintain Accounting Configuration: Special G/L – Properties is displayed. You don’t need to adjust any settings here, this exercise is just to check your settings and make sure that they are okay.
Your screen should look like the one in figure 16-10.
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Note normally comes with preconfigured settings for Special G/ properties. Check the Special G/L specifications provided by the system to make sure that they meet your needs.
Note normally comes with preconfigured settings for Special G/ properties. Check the Special G/L specifications provided by the system to make sure that they meet your needs.
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4. Check Vendor Line Item Report
Path Accounting → Financial Accounting → Accounts Payable → Account
→ FBL1N - Display/Change Line Items
Tcode FBL1N
Vendor Account =
Company Code =
Select Open Items Check box
Click on "Execute" Icon and observe the Document Status.
5. Purchase invoice posting
Path Accounting → Financial Accounting → Accounts Payable → Document
Entry → Invoice.
Tcode FB60
Vendor No =
Invoice Date =
Posting Date =
Tax Code = Press Enter
GL A/c
Dr/ Cr
Amount
Profit Center
Select Calculate Tax Checkbox
Amount = Press Enter
Click on “Simulate”
Post Save
6. Transfer Advance from Special GL to Normal by clearing Special GL A/c
Path SAP Menu –> Accounting –> Financial Accounting –> Accounts Payable –
> Document Entry –> Down payment –> Clear Vendor Down payment.
Tcode F-54
Document date = Company Code =
Posting date =
Account = (Vendor Number) Press Enter
Text =
Click on "Process down payments" button.
Transfer posting = Click on Save
7. Check Vendor Line Item Report - TC - FBL1N
Path Accounting → Financial Accounting → Accounts Payable → Account
→ FBL1N - Display/Change Line Items
Tcode FBL1N
Vendor Account =
Company Code =
Select Open Items Checkbox
Click on "Execute" Icon and observe the Document Status.
8. Clearing of Normal item
Path Accounting → Financial Accounting → Accounts Payable → Account →
Clear.
Tcode F-44
Account = Vendor Account Number
Click on “Process open items”
Double click both the line items. Click on Save
9. Check Vendor Line Item Report
Path Accounting → Financial Accounting → Accounts Payable → Account
→ FBL1N - Display/Change Line Items
Tcode FBL1N
Vendor Account =
Company Code =
Select Open Items Checkbox
Click on "Execute" Icon and observe the Document Status.
Down Payment Request for Vendors
This is when a vendor requests partial or full advance payment from you before commencing a business transaction.
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Note Down payment request is a noted item.
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NOTED ITEMS
No accounting impact – no entry posted
Acts as a reminder for advance payment (down payment)
‘---------------------------------------------------------------------------------------------
1.Down Payment Paid
Vendor A/c Dr 29 A 1000
To Bank A/c Cr 50 1000
‘--------------------------------------------------------
3. Posting of Purchase Invoice
Inventory RM A/c Dr 40 1000
To Vendor A/c Cr 31 1000
‘--------------------------------------------------------
4. Transfer Down Payment to Normal Reconciliation A/c
Vendor A/c Dr 1000
To Vendor A/c Cr 39 A 1000
‘---------------------------------------------------------------------------------------------
1. Link Sundry creditors A/c With Down Pmnts Requests - Vendors a/c
Path IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable--
>Business Transactions-->Down Payment Made-->Define Alternative
Reconciliation Account for Down Payments
Tcode OBYR
Double click on “Special Gl Indicator - F” down payment requests
Chart of accounts = Press Enter
Reconciliation account = (sundry creditors a/c)
Special GL account = (down payment GL a/C)
Click on Save
2. Posting Of Down Payment Request Received From Vendors
Path Accounting - Financial Accounting - Accounts payable - Document entry -
Down payment - request
Tcode F-47
Document date= company code=
Posting date =
Vendor:
Account= (vendor account number )
Targeted Spl. GL indicator = Press Enter
Amount Due on
Text = Click On Save
To customize down payment request for vendors, follow this menu path: IMG: Financial Accounting➤ Accounts Receivable and Accounts Payable ➤ Business Transactions ➤ Down Payments Made ➤ Define Alternative Reconciliation Account for Down Payments.
The Maintain Accounting Configuration: Special G/L List screen is displayed, containing the list of possible Special G/L Transactions. Select Down Payment Request (SP.G/Lind. F) from the list by clicking on it to select it, and click Choose at the top left of the screen. The Chart of Accounts Entry dialog Box pops up. Enter your Chart of Accounts ID (CA10) in the Chart of Accounts field and click Continue at the bottom right of the dialog box.
The Maintain Accounting Configuration: Special G/L - Accounts screen is displayed (Figure 16-11).
Enter G/L 213000 in the Reconciliation Account field and Payment requests (Vendor) – 196300 in the Special G/L account field. Enter planning level FF (Down Payment Request) in the Planning level field.
Click the Properties function at the top of the screen to check the defaulted specifications in the system for your Special G/L payment properties to see if the setting meets your requirement. To do this, click Properties (this is the third item from the top left of the screen).
Save your settings.
The final step in defining vendor down payments is to define the tax clearing account.
3. Display Of Vendor Line Item Report
Path Accounting → Financial Accounting → Accounts Payable → Account
→ FBL1N - Display/Change Line Items
Tcode FBL1N
Vendor account =
Company code =
“open items"
"noted items”
Click on “execute”.
Observe that the down payment request received from the vendor is shown as open item.
Check Vendor balance Report -FK10N
4. Posting Down Payment against DP Request noted
Path Accounting – Financial Accounting – Accounts Payable – Document
Entry – Down Payment – Down Payment
Tcode F-48
Document date = Company Code =
Posting date =
Account = (Vendor Number)
Special GL Indicator = A Click on "Enter
Bank A/c =
Amount =
Text =
Menu, Document, Simulate and Click on Save
Note: Special GL indicator “A” is available by default, no need to create.
5. Check Vendor Line Item Report
Path Accounting → Financial Accounting → Accounts Payable → Account
→ FBL1N - Display/Change Line Items
Tcode FBL1N
Vendor Account =
Company Code =
Open Items
special GL Transactions
Click on "Execute" Icon and observe the Document Status.
Check Vendor balance Report -FK10N
6. Purchase invoice posting
Path Accounting → Financial Accounting → Accounts Payable → Document
Entry → Invoice.
Tcode FB60
Vendor No =
Invoice Date =
Posting Date =
Tax Code = Press Enter
GL A/c
Dr/ Cr
Amount
Profit Center
Select Calculate Tax checkbox
Amount = Press Enter
Click on “Simulate”
Post Save
7. Transfer Advance from Special GL to Normal by clearing Special GL A/c
Path SAP Menu –> Accounting –> Financial Accounting –> Accounts Payable –
> Document Entry –> Down payment –> Clear Vendor Down payment.
Tcode F-54
Document date = Company Code =
Posting date =
Account = (Vendor Number) Press Enter
Text =
Click on "Process down payments" button.
Transfer posting = Click on Save
8. Check Vendor Line Item Report
Path Accounting → Financial Accounting → Accounts Payable → Account
→ FBL1N - Display/Change Line Items
Tcode FBL1N
Vendor Account =
Company Code =
Select Open Items checkbox
Click on "Execute" Icon and observe the Document Status.
Check Vendor balance Report -FK10N
9. Clearing of Normal item
Path Accounting → Financial Accounting → Accounts Payable → Account →
Clear.
Tcode F-44
Account = Vendor Account Number
Click on “Process open items”
Double click both the line items. Click on Save
10. Check Vendor Line Item Report
Path Accounting → Financial Accounting → Accounts Payable → Account
→ FBL1N - Display/Change Line Items
Tcode FBL1N
Vendor Account =
Company Code =
Select Open Items checkbox
Click on "Execute" Icon and observe the Document Status
Defining Account for Tax Clearing (Down payments – Vendor)
Depending on your country’s legal specifications, the tax entered for down payment will be posted to the tax clearing account you defined in here.
Problem: Your client wants a tax clearing account that will enable the Spoxio Inc. accounting team to display gross down payments in the vendor accounts in order to meeting legal requirements. Your task is to define a clearing account for down payments made that will enable the Spoxio Inc. accounting team to achieve this objective.
To define account tax clearing for vendor down payments, follow this menu path: IMG: Financial Accounting ➤ Accounts Receivable and Accounts Payable ➤ Business Transactions ➤ Down Payments Made ➤ Define Account for Tax Clearing.
The Configuration Accounting Maintain: Automatic Posts – Procedures screen comes up, displaying a list of procedures provided by SAP in the system. From the Procedure list Select Input tax clearing on down payments – VVA by clicking on it, and click Choose at the top left of the screen. The Chart of Accounts Entry dialog screen pops up. Enter your Chart of Accounts ID (CA10) in the Enter Chart of Account field and click Continue at the bottom right of the dialog box. The Configuration Accounting Maintain: Automatic Posts – Rules comes up. Select Input tax clearing checkbox in Accounts are determined based on section of the screen and then click the Save button at the bottom right of the screen.
The Configuration Accounting Maintain: Automatic Posts – Accounts screen is displayed (Figure 16-12).
Enter Output Tax type – V in the Input Tax type field and enter the appropriate G/L Account for Input tax clearing on down payments (we used 159010 as our G/L account in this activity) in the Account field.
Save your work.
Guarantees
Bank Guarantee is a legally binding document issued by the banks or other financial institutions on behalf of their client to a third party (supplier) to enable the client to obtain goods or services from a supplier on credit for an agreed time period. Bank guarantee is a kind of short-term borrowing. It is a formal assurance by the bank to make payment to a supplier in an event where their client fails to keep their part of the debt obligation for goods or services received within the specified period.
It is a normal business practice for banks to request some form of collateral or security from their clients before issuing them a letter of credit in order to safeguard the assets of the bank.
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Note Before you proceed with this activity, you have to first create the GL accounts that you would need to assign to your settings for Guarantee during your configuration. Please refer to Chapter 5 on how to create G/L accounts.
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Defining Alternative Reconciliation Accounts for Vendors (Guarantees)
Problem: It is mandatory to disclosure the requirement for Spoxio Inc. to maintain separate special G/L accounts where guarantees are posted, instead of the normal vendor reconciliation accounts. Your task is to define alternative reconciliation accounts that will enable posting guarantees to G/L special accounts.
To go to the screen where you will define alternative reconciliation accounts for customers (guarantees), follow this menu path: IMG: Financial Accounting ➤ Accounts Receivable and Accounts Payable ➤ Business Transactions ➤ Postings with Alternative Reconciliation Account ➤ Other Special GL Transactions ➤ Define Alternative Reconciliation Account for Vendors.
The Maintain Accounting Configuration: Special G/L List screen is displayed (Figure 16-13), containing the list of possible Special G/L Transactions.
Select Guarantee (SP.G/Lind. G) from the list by clicking on it to select it and click Choose at the top left of the screen. The Chart of Accounts Entry dialog Box pops up. Enter your Chart of Accounts ID (CA10) in the Chart of Accounts field, and click Continue at the bottom right of the dialog box.
The Maintain Accounting Configuration: Special G/L - Accounts screen is displayed (Figure 16-14). Enter G/L Account – 213000 in the Reconciliation Account field and enter the Special G/L Account – 196400 in the Special G/L Account field.
Update the following fields:
Recon. acct: Enter the G/L reconciliation account for clearing down payment (we used 213000 as our reconciliation account in this activity) in this field.
Special G/L account: Enter the G/L for advance customer payment (we used 196400 in this activity) in this field.
The next step is to check the defaulted specifications in the system for your Special G/L payment properties to see if the setting meets your requirement. To do this, click Properties (this is the third item from the top left of the screen).
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Note normally comes with preconfigured settings for Special G/ properties. Check the Special G/L specifications provided by the system to make sure that they meet your needs
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Save your work.
The last step in our guarantee customizing is to define accounts for automatic offsetting entry. By defining accounts for automatic offsetting entries, you are simply specifying the G/L accounts that the system will post the offsetting entries to for special G/L transactions.
Defining Accounts for Automatic Offsetting Entry
Accounts determination for automatic offsetting Entry for special GL transactions are based on account type, special G/L indicator, chart of accounts, and reconciliation account.
Problem: Your task is to define Accounts for Automatic Offsetting Entries for the following Accounts:
• DG – Customer – Guarantee.
• DS Customer – Check/bill of exchange.
• KG – Vendor Guarantee.
• KS – Vendor – Check/bill of exchange.
To define accounts for automatic offsetting entry, follow this menu path: IMG: Financial Accounting ➤ Accounts Receivable and Accounts Payable ➤ Business Transactions ➤ Postings with Alternative Reconciliation Account ➤ Other Special GL Transactions ➤ Define Accounts for Automatic Offsetting Entry.
The Enter your Chart of Accounts dialog box pops up. Enter your Chart of Accounts ID (CA10) in the Chart of Accounts field. Confirm your entry by clicking Continue at the bottom right of the dialog box. The Configuration Accounting Maintain: Automatic Posts – Rules screen comes up. Set Account type/sp.G/L ind checkbox. On the Automatic Posting Rules in Accounts are determined based on section of the screen, click the Save button at the bottom right of the screen.
The Configuration Accounting Maintain: Automatic Posts – Accounts screen where you will assign the G/L accounts for automatic Offsetting postings is displayed (Figure 16-16).
Using the information below, update fields following: Account type/special G/L Indicator and Account.
Table 16-1. List of Account Types/Special G/L Indicators and Accounts
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Account type/sp.G/L Ind Account
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DG – Customer – Guarantee 196110
DS Customer – Check/bill of exchange 196210
KG – Vendor Guarantee 196410
KS – Vendor – Check/bill of exchange 196210
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Figure 16-16. Assigning account types to G/L accounts for automatic statistical offsetting entries
Save your customizing.
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