RE:[sap-acct] Clearing accounts in SAP should be "Open Items"?
Posted by
Admin at
|
Share this post:
|
|
0 Comments
 | Posted by Vidhyadhar (User-friendly Consultant) on Apr 3 at 12:01 PM |  Mark as helpful |
Hi Gopal
Let us understand what happens in a cash purchase.
(1) Two Accounts are involved ( Purchase Account and Cash Account) in one transaction
where you account your purchases inflow and also a cash outflow simultaneously. This does not require any future monitoring since the entire transaction stands settled in one step. This applies to many other transactions such as a cash sale , expense / revenue accounting which is associated with an immediate cash flow.
(2) On the contrary, let us assume that you have borrowed from a bank 12000 USD repayable in 12 monthly installments. In this case, you avail the bank loan which remains unsettled until you have paid all the 12 monthly installments (1000 USD per month). The loan stands settled after 12 months ( that is after you have you have repaid all the installments). In this case, availing the loan happens in one step, but repayments happen as later steps ( at a different point of time ). Such items require to be monitored until settled fully......Right?
Therefore the loan account (which is a General Ledger Account ) needs to be maintained on Open item basis ( Open items are incomplete transactions which would be settled at a later point of time and monitored until then ). Settlement of open items is also called as clearing. In other words, your loan of 12000 USD stands cleared once you have cleared all the 12 installments and until such full settlement happens , the loan is treated as an open item.
Whether a General Ledger Account requires to be maintained on open item basis or not requires to be planned and decided upon even while you create the said General Ledger Account.
But such open item management and monitoring was not required in the earlier case of cash purchase (1). Therefore, cash purchases do not require open item management.
Any Account which is maintained with open item management is called a clearing account. Any vendor who offers you goods and services on credit and takes money later , any customer to whom you sell on credit and collect money later requires to be managed on open item basis. Therefore, all customers and vendors are clearing accounts ( this is defined in SAP , by default)
The process of subsequent settling is also known as clearing. Hence the term clearing accounts.
Now , do you have a fair idea of what clearing is all about and what clearing accounts are?
Regards
VidhyaDhar
---------------Original Message---------------
From: Gopal_THAKKAR
Sent: Monday, January 04, 2010 1:10 AM
Subject: Clearing accounts in SAP should be "Open Items"?
> Hi Experts,
> My question is particularly regarding Clearing accounts in SAP.
> Whether all the Clearing accounts in SAP should be "Open Item Managed Accounts" ideally?
> or they can be mapped as posted item as per business requirements?
> will be grateful if anyone can make me understand logic behind this is detail.
> Regards,
> Gopal thakkar
> Gopal Thakkar
__.____._ Let us understand what happens in a cash purchase.
(1) Two Accounts are involved ( Purchase Account and Cash Account) in one transaction
where you account your purchases inflow and also a cash outflow simultaneously. This does not require any future monitoring since the entire transaction stands settled in one step. This applies to many other transactions such as a cash sale , expense / revenue accounting which is associated with an immediate cash flow.
(2) On the contrary, let us assume that you have borrowed from a bank 12000 USD repayable in 12 monthly installments. In this case, you avail the bank loan which remains unsettled until you have paid all the 12 monthly installments (1000 USD per month). The loan stands settled after 12 months ( that is after you have you have repaid all the installments). In this case, availing the loan happens in one step, but repayments happen as later steps ( at a different point of time ). Such items require to be monitored until settled fully......Right?
Therefore the loan account (which is a General Ledger Account ) needs to be maintained on Open item basis ( Open items are incomplete transactions which would be settled at a later point of time and monitored until then ). Settlement of open items is also called as clearing. In other words, your loan of 12000 USD stands cleared once you have cleared all the 12 installments and until such full settlement happens , the loan is treated as an open item.
Whether a General Ledger Account requires to be maintained on open item basis or not requires to be planned and decided upon even while you create the said General Ledger Account.
But such open item management and monitoring was not required in the earlier case of cash purchase (1). Therefore, cash purchases do not require open item management.
Any Account which is maintained with open item management is called a clearing account. Any vendor who offers you goods and services on credit and takes money later , any customer to whom you sell on credit and collect money later requires to be managed on open item basis. Therefore, all customers and vendors are clearing accounts ( this is defined in SAP , by default)
The process of subsequent settling is also known as clearing. Hence the term clearing accounts.
Now , do you have a fair idea of what clearing is all about and what clearing accounts are?
Regards
VidhyaDhar
---------------Original Message---------------
From: Gopal_THAKKAR
Sent: Monday, January 04, 2010 1:10 AM
Subject: Clearing accounts in SAP should be "Open Items"?
> Hi Experts,
> My question is particularly regarding Clearing accounts in SAP.
> Whether all the Clearing accounts in SAP should be "Open Item Managed Accounts" ideally?
> or they can be mapped as posted item as per business requirements?
> will be grateful if anyone can make me understand logic behind this is detail.
> Regards,
> Gopal thakkar
> Gopal Thakkar
Copyright © 2010 Toolbox.com and message author.
Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251
Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251
VidhyadharSAP Accounting Helper
Posted helpful replies on 5 threads in a group to earn a Bronze Achievement
In the Spotlight
Earn Recognition for Your Contributions at Toolbox for IT. Gain Points for Community Achievements
View this thread online
Manage group e-mails
Create an FAQ on this topic
Tell us what you think
Unsubscribe from discussion
Manage group e-mails
Create an FAQ on this topic
Tell us what you think
Unsubscribe from discussion
_.____.__ 
