QnA 2

Account Assignment Model?

‘Account Assignment Model’ is a ‘reference method’ used in document entry when the same distribution of amounts to several Company Codes, cost centers, accounts, etc., is frequently used. Instead of manually distributing the amount among accounts or Company Codes, you may use equivalence numbers for distributing both the credit and debit amounts. A cross-Company Code account assignment model can also be created.

The account assignment model may contain any number of GL accounts. The GL account items need not be complete. The model can be used across several Company Codes, and can even include Company Codes from non-SAP systems. You can use the account assignment model while ‘parking’ a document (but you cannot use a ‘reference document’ for ‘parking’).

    The use of account assignment models is limited to GL accounts.

Unlike a ‘Sample Document,’ an account assignment model may be incomplete and can be completed during document entry by adding or deleting or changing the data already saved in the model.

What are the Month End Closing Activities in Finance?

1. Recurring Documents.

a) Create Recurring documents

b) Create Batch Input for Posting Recurring Documents

c) Run the Batch Input Session

2. Posting Accruals or Provisions entries at month end

3. Managing the GR/IR Account-Run the GR/Ir Automatic Clearing

4. Foreign Currency Open Item Revaluation-Revalue Open Items in

    AR.AP

5. Maintain Exchange Rates

6. Run Balance Sheets –Run Financial Statement Version

7. Reclassify Payables and Receivables if necessary

8. Run the Depreciation Calculation

9. Fiscal Year Change of Asset Accounting if it is year end

10. Run the Bank Reconciliation

11. Open Next Accounting Period

Scenario: A down payment(F-48) is made $25 Later an invoice(MIRO) is posted for $100 Now i wnt to Pay $75 to Vendor But the Automatic payment program(F110) is not clearing the down payment against the vendor invoice. Could you please help how to clear the down payment against the vendor invoice in the payment program

Follow the steps

Step1
After posting the down payment amount you have to clear the down payment amount $25 against the Invoice .the transaction code is F-54.

Step2
Now go to transaction code f-44 and put the vendor code and go to the residual clearing tab and residually clears against $25 against $100.
what you have to do ...you select all the line items and the deselect . again you select/activate line items of $25 and $100 and in the next box (line item$100) double click ......see automatically $75 will appear.....simulate and post.

Now you go to F110 ....run the proposal......you can see the line items of $75 to be paid and it will be seen as a credit balance.

How do you make an advance payment to a vendor through the APP?

You need to use a down payment request to a vendor. This will create a noted item in the vendor, which you need to include with the APP. This will post the advance to the vendor as a special G/L transaction.
There are two steps to make an advance payment to a vendor:
1.Create a down payment request through T-code F-47.
2.in FBZP for All Company Code do not foreget to put F (down payment request) and down payment Sp. GL you want to perform payment for.
2.Post the down payment through T-code F110 (APP). The system will pay for all down payment requests by    check or bank transfer

Line item display and open item management in vendor account

line item display and open item management in vendor account are always preset for every vendor account

Special periods?

The logic behind the use of special periods is to identify and have control over transactions after the closing of normal posting periods.
   Management adjustments
   rectification entries by auditors

How do you keep the FI posting period open only for certain GL codes?

In transaction code OB52 click on new entries and maintain an interval or a single GL code for the account type S with the posting period variant. If the GL codes are not in sequence then you need to maintain further entries for the posting period variant and account type S

Relevant to cash flow Check Box?

If we select the “relevant to cash flow” check box it will determain that the GL account is related to Cash receipt account / cash disbursement account and the same can use to make out going payment through either cash or bank.And it can usefull while making cash flow statements.

If you are using Cash Management and Cash Concentration functionality in Treasury module then this field has great importance.You will select this field for cash and bank accounts because all movements in these accounts have cash flow relevancey.

The following accounts are typically defined as cash flow accounts:
- bank account
- account for bank charges
- check clearing account
- Clearing account for incoming payments

If you don't select this field for the bank account which you use for making down payment, withholding tax will not be calculated.

We can post the vendor document in F-43 and it allows to make outgoing payment entry through F-53 also
But we can’t run the manual check number from the register It will through the error message "the particular document no is not a payment document

What is dunning? What is dunning level..? How many dunning levels can be configured?

Ans)Customers with whom you transact business have to pay their  dues eventually. Generally the due date on which the customers have to settle the dues is stipulated in the  terms of payment agreed into with them.

Now one of the three logical events can happen:

1) Customers pay on the due date specified:

They pay the entire value of money for which you have  supplied materials and / rendered services. Not a bad

situation at all..... you can meet your financial commitments as planned since you have received prompt

payment ....

2) Customers pay ahead of the due date specified:

This is a better situation for you..... Your money comes ahead of your original plan and you can be safe about

meeting your financial commitments as planned ......Therefore, You waive off a small part of the dues owed by your customers since your working capital is not hampered.

3)What a mess things are in this business world !. You had promised money to your creditors assuming that your

customers would pay promptly and that is not happening.  This is a Domino effect commencing with your customers which you are forced to pass on to your vendors..... That is not one bit good !!!!. You must do something to prevent  recurrence of such an uncomfortable situation !

What are the corrective measures which you intend to take?

SAP calls it as DUNNING.

As a first step, you need to identify which of your  customers have not paid their dues promptly . You need to 

remind each one of such customers about the non-payment and insist that the dues are settled immediately. This is done through letter correspondences ( indicating break up of  dues owed by the customers). Some deaf customers who do not heed your letters need to be reminded often ( that is periodically , each time the letter sounding a little sterner than the earlier one.

The second optional step would be to levy penal charges for the defaulted payment in the following manner:

1. Levy of interest for nonpayment / belated payment

2. Levy of incidental charges incurred with regard to dunning ( the process of dunning is going to cost you by

way of follow up,dunning and printing costs, maintenance of additonal records,additional labor incurred by way of wages

to dunning clerks etc...)

Customers who are tone deaf even after repeated reminders would be handled through a legal process.

This is the process of dunning.

  

Generally, each time you dun a customer you are crossing one level of dunning. Though you can dun upto a maximum

of nine times , you would normally resort to legal help after dunning three or four times, at the most. The number of

dunning levels you need can be configured and theoretically it ranges from 0 to 9 levels ( 0 if your company is run by

an inefficient management which does not bother to collect money on time  and 9 if your management is too liberal with

your customers !).

I trust this gives you a basic understanding of what dunning is and what the dunning levels are.....

In FI Invoice transactions are not getting posted to a customer account. Possible reasons can be

1) Check whether the document type (DR) and no. ranges have given  or not?

2) Create customer account and sales account for sales invoice posting

3) Assign the reconciliation account(sundry debtor) to sub ledger customer account.

4)Check the posting period is open or not for AR & G/L

5)check no.ranges assigned to document types RV and KA

6)tolerance group

7)check the recon a/c and sales a/c in FS00 because it might be a 

chance of blocked from posting ..

 "Control Data" section of GL master data:- 1) Account Currency 2) Only balance in local currency, explain with practical example.

Account Currency indicates the currency in which this Account is held.

When creating a G/L account, you must define the currency in which the account is to be kept.

This defines the following:

·                     The currency used for postings made to this account

·                     The currency in which transaction figures are updated and the account balance is displayed

You specify the account currency in the company code area of the G/L account master data. This allows you to keep the G/L account in the local currency of each company code.


This is especially useful for international groups that have all subsidiaries use the same chart of accounts but with the accounts kept in the local currency.

Features
When setting the account currency, you have two options available:

·                     If we Enter the local currency of your company code.                                                                                         The system automatically uses the local currency that you defined when creating the company code as the default value. This allows posting to the G/L account in any currency. 

When you make a posting in a foreign currency, the amount is translated into the local currency. For more information, see 

 Posting a Document in a Foreign Currency.

The transaction figures are kept as follows:

·                                                                     In the local currency, that is, the total of all the amounts posted in the local currency

·                                                                     In the individual currencies, that is, the total of all the amounts posted in various currencies.

·                     If we Enter a foreign currency.                                                                          

 If the Currency is other than Company Code Currency then, User can only post items into this Account in which the Account is mentioned. The transaction figures and the account balance are kept in the foreign currency entered and in the local currency.

Scenario: If you have bank account in US wherein only USD currency is posted, so your business does not want to post any other currency so you will put USD in this field.

Balances in Local Currency’ Only

It means the balances are updated only in local currency when users posts to this Account.

even if the document posted in foreign currency. In FS10N or FAGLB03, you will not be able to display balance in foreign currency..

Example: Consider an invoice for USD 1,000, which on that day translates into an amount of INR 45,000 with an exchange rate of I USD=INR 45. Imagine that when the goods are received, the exchange rate was 1 USD=INR 44.

         If the indicator is set, the balances are updated only in local currency @ Rs.45000 the system ignores the exchange rate as if the line items have been maintained only in the local currency (INR)(Rs45000), and the items are cleared.

         If the indicator is NOT set, the system makes a posting for the ‘exchange rate difference’ (INR 1, 000) before clearing the two line items.

This Option is used both for 

·                     Cash Discount Clearing 

·                     GR/IR Clearing Account 

·                     It is also used for Balance Sheets Accounts which not managed Open Item basis Or not kept in foreign Currency.(but not used for Customer / vendor reconciliation Accounts.) 

you need to set this indicator so that the transactions are posted without posting any exchange rate difference that otherwise might arise.