| # 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 and Accounts Payable modules. 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 more information, refer to Financial business partner groups. Note Most kinds of transactions exist for both accounts payable and accounts receivable. A small number of transactions, however, are specific to either accounts payable or accounts receivable. If a transaction is specific to either accounts payable or accounts receivable, this is stated. 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 Receivable and Accounts Payable 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 (tfcmg2100s000) 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. The realized currency loss is posted when: An invoice is finally paid. Payment differences are written off. Advance payments or unallocated payments are assigned to an invoice. 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 (tfcmg2100s000) session. Invoice Receipts 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 ERP LN and the invoice status is set to Registered. The account is credited when the purchase invoice is approved. For more information, refer to To process purchase invoices. This account only exists for accounts payable. Anticipated Payments and Anticipated Receipts The anticipated payments and anticipated receipts are posted to this account. ERP 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. Price Differences 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 (tfacp0100s000) session. This account only exists for accounts payable. 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. Commissions Commissions are posted to this account. This account only exists for accounts payable. Rebates Rebates are posted to this account. This account only exists for accounts receivable. Doubtful Invoices Doubtful invoices are posted to this account. This account only exists for accounts receivable. Note If you think an invoice is not going to be paid, you can post the invoice as doubtful using an invoice correction. This invoice is credited from the normal control account and posted to the doubtful invoices account. Related topics Currency differences Credit control Interest calculation on overdue invoices Default amounts for bank transactions |