Common ledger accounts used for ACR and ACP

The commonly used control accounts for Accounts Payable and Accounts Receivable are described below.

Advance Payments-Tangible Assets and Advance Receipts

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.

Realized Currency Profit

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 profit is posted when:

  • An invoice is finally paid.
  • Payment differences are written off.
  • Advance payments or unallocated payments are assigned to an invoice.
Realized Currency Loss

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.

Unrealized Cur. Profit

Currency profits are posted to this account. This account is used if:

  • An anticipated payment/receipt is processed for an invoice with a foreign invoice currency.
  • The exchange rate at the time of receipt is different from the exchange rate at the time of invoicing, resulting in a currency profit.
  • You write off currency differences by using the Write Off Currency Differences (tfacr2250m000) session or the Write Off Currency Differences (tfacp2240m000) session.

The realized currency profit is posted when:

  • An invoice is finally paid.
  • Payment differences are written off.
  • Advance payments or unallocated payments are assigned to an invoice.
Note

An unrealized currency profit is only posted if you specified this in the Accounts Payable or Accounts Receivable parameters.

Unrealized Cur. Loss

Currency losses are posted to this account. This account is used if:

  • An anticipated payment/receipt is processed for an invoice with a foreign invoice currency
  • 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.
  • You write off currency differences by using the Write Off Currency Differences (tfacr2250m000) session. or the Write Off Payment Differences (tfacr2240m000) session. For the sessions Write Off Payment Differences (tfacr2240m000)/ Write Off Bad Debts (tfacr2255m000), the existing Unrealized Currency Loss is contra-posted and posted to the Payment Differences/Write Off Bad Debts account.

The realized currency loss is posted when:

  • An invoice is finally paid.
  • Advance payments or unallocated payments are assigned to an invoice.
Write-off Bad Debts

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

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.

Discount

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

Late Payment Surcharge

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

Anticipated Payments and Anticipated Receipts

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.

Deductions Anticipated Payments and Deductions Ant. Receipts

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.

Net Advance Payments-Tangible Assets and Net Advance Receipts

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.

Note

To charge tax on advance payments/receipts, select the Calculate Tax on Advance Payments/Receipts check box in the CMG Parameters (tfcmg0100s000) session.

Gross Advance Payments-Tangible Assets and Gross Advance Receipts

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.

Unallocated Payments and Unallocated Receipts

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.

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