Financial business partner group ledger accounts

In addition to the debtors' and creditors'control accounts, specific ledger accounts are predefined for a number of transactions from the Accounts Receivable module and the Accounts Payable module.

For each financial business-partner group, you must define the control accounts and the ledger account and the dimensions for each type of transaction. For details, refer to Financial business partner groups.

Which accounts you can set up for a financial business partner group depends on the functionality that you use. For example, sets of control accounts exist for factoring, trade notes, and fixed assets. The commonly used control accounts for Accounts Payable and Accounts Receivable are described below.

The advance payments or advance receipts are posted to this account. This account is credited when advance receipts are booked and debited when the advance receipt is assigned to an invoice. These transactions are entered, for example, in the Bank Transactions (tfcmg2500m000) session.

The realized currency profits are posted to this account. This account is used when a payment or receipt of an invoice in a foreign currency is processed. The exchange rate at the time of receipt is different from the exchange rate at the time of invoicing, which results in a currency profit.

The realized currency losses are posted to this account. This account is used when a payment or receipt of an invoice in a foreign currency is processed. The exchange rate at the time of receipt is different from the exchange rate at the time of invoicing, which results in a currency loss.

The Bad Debts written off are posted to this account by Write-Off Bad Debts (tfacr2255m000) session. Using this session amounts that are no longer collectible can be written off automatically.

Payment differences are posted to this account. Using the Write Off Payment Differences (tfacr2240m000) or Write Off Payment Differences (tfacp2230m000) session small differences can be written off automatically.

The discounts are posted to this account when you process receipts or payments that involve discounts.

The late-payment surcharge amounts are posted to this account when they are deducted in the Bank Transactions (tfcmg2500m000) session.

Purchase invoices are posted to this account when you enter the purchase invoices that are related to orders in Procurement.

This account is debited when purchase invoices that are related to orders are entered in LN and the invoice status is set to Registered. The account is credited when the purchase invoice is approved. For details, refer to Processing purchase invoices.

This account only exists for accounts payable.

The anticipated payments and anticipated receipts are posted to this account. LN books anticipated transactions to this account if Anticipated Payments or Anticipated Receipts has been selected in the Account Type field of the Posting Data by Bank/Payment Method (tfcmg0146s000) session. When the receipt status is switched from Anticipated to Final, the amounts are transferred to the control account.

The use of this account depends on the setting of the Deductions field of the Posting Data by Bank/Payment Method (tfcmg0146s000) session.

As long as the payment or receipt is not reconciled (in other words, its status is anticipated), you can store all deductions (discounts, late payment surcharges, and payment differences) on this ledger account.

As long as the payment or receipt is anticipated, the different possible deductions are not posted to the final accounts for discounts, late payment surcharges, or payment differences, but are posted together to this interim account. When the payment or receipt is reconciled, the deductions are posted from this interim account to the final accounts.

In some countries, for example Germany, tax must be paid on large advance payments/receipts. The paid amount without tax is posted to this account.

If the Calculate Tax on Advance Payments/Receipts check box in the CMG Parameters (tfcmg0100s000) session is selected, tax is calculated on advance payments/receipts. The paid amount with tax added is posted to this account.

Price differences are posted to this account. Price differences can occur during the automatic matching and approval of purchase invoices. These differences must lie within the margins that are defined in the ACP Parameters (tfacp0100m000) session.

This account only exists for accounts payable.

Unallocated payments/receipts are posted to this account. This account is debited when an unallocated payment or an unallocated receipt is booked, and credited when it is assigned to an invoice.

Commissions are posted to this account.

This account only exists for accounts payable.

Rebates are posted to this account.

This account only exists for accounts receivable.

Doubtful invoices are posted to this account. This account only exists for the accounts receivable.