Accrual/Deferral Document Method
On the month end provision are made and on the next month first working day, we reverse total provisions made. At the time of making payment we take the actual payment made.
Steps:
1) Creation of Reversal Reason
2) Enter Accrual/Deferral Documents
A. Rent Provision
B. Salary Provision
3) Reversal of Accrual/Deferral Documents
Open Item Management
At the month end we make the provision. At the time of payment we adjust the provision. If excess payment is made, difference between actual payment and provision is considered as expenditure for that month. This is used for Vendors, Customers and Balance sheet items where clearing is required. We have to select the open item management check box while creating the G/L accounts
We can view the account in 3 ways :-
a. Open items ( payable )
b. Cleared items ( paid )
c. All items ( payable + paid )
Three scenarios for Open Item Management
1) Full Clearing
2) Partial Clearing
3) Residual Clearing
FULL CLEARING
Steps:
1) Rent Provision (tr code F-02)
2) How to View Open Item Managed Account Transaction (tr code FBL3N)
3) Outgoing Payment with Clearing ( tr code F-07)
4) Checking Open Items and Cleared Items after Payment (tr code FBL3N)
PARTIAL CLEARING
Steps:
1) Rent Provision (tr code F-02)
2) Outgoing payment with Partial clearing Method ( tr code F-07)
3) View Open Item Managed Account Transaction (tr code FBL3N )
4) Make Payment of Balance Amount (tr code F-07)
5) Checking Open Item and Cleared items after Payment (tr code FBL3N)
RESIDUAL CLEARING
Steps:
1) Rent Provision (tr code F-02)
2) Outgoing payment with Residual clearing Method ( tr code F-07)
3) View Open Items and Cleared Items ( tr code FBL3N )
4) Make Payment of Balance Amount (tr code F-07)
5) Checking Open Items and Cleared items after Payment (tr code FBL3N)
On the month end provision are made and on the next month first working day, we reverse total provisions made. At the time of making payment we take the actual payment made.
Steps:
1) Creation of Reversal Reason
2) Enter Accrual/Deferral Documents
A. Rent Provision
B. Salary Provision
3) Reversal of Accrual/Deferral Documents
Open Item Management
At the month end we make the provision. At the time of payment we adjust the provision. If excess payment is made, difference between actual payment and provision is considered as expenditure for that month. This is used for Vendors, Customers and Balance sheet items where clearing is required. We have to select the open item management check box while creating the G/L accounts
We can view the account in 3 ways :-
a. Open items ( payable )
b. Cleared items ( paid )
c. All items ( payable + paid )
Three scenarios for Open Item Management
1) Full Clearing
2) Partial Clearing
3) Residual Clearing
FULL CLEARING
Steps:
1) Rent Provision (tr code F-02)
2) How to View Open Item Managed Account Transaction (tr code FBL3N)
3) Outgoing Payment with Clearing ( tr code F-07)
4) Checking Open Items and Cleared Items after Payment (tr code FBL3N)
PARTIAL CLEARING
Steps:
1) Rent Provision (tr code F-02)
2) Outgoing payment with Partial clearing Method ( tr code F-07)
3) View Open Item Managed Account Transaction (tr code FBL3N )
4) Make Payment of Balance Amount (tr code F-07)
5) Checking Open Item and Cleared items after Payment (tr code FBL3N)
RESIDUAL CLEARING
Steps:
1) Rent Provision (tr code F-02)
2) Outgoing payment with Residual clearing Method ( tr code F-07)
3) View Open Items and Cleared Items ( tr code FBL3N )
4) Make Payment of Balance Amount (tr code F-07)
5) Checking Open Items and Cleared items after Payment (tr code FBL3N)