Use Reconciliation Account Determination with a Special G/L Indicator for More Flexible Invoicing

  • by Rohana Gunawardena, SAP Practice Director, Exium Inc.
  • July 15, 2004
The author demonstrates how to optimize reconciliation account determination. He introduces the fundamentals of reconciliation account determination, special G/L indicator configuration, and manual adjustments. With examples, he shows how to use reconciliation account determination with a special G/L indicator in the FI-A/R module.

Using reconciliation account determination, you can post customer invoices to a reconciliation account other than the one defined in the customer master record. This allows segregation of outstanding customer balances in the balance sheet.

For example, say a company sells training credits as part of its system sales. The training credit needs to be recorded as a customer liability, which the customer consumes as it sends its employees on training. Using reconciliation account determination, the training credit line of the sales order is posted to a separate balance sheet account, allowing proper identification of this liability for external reporting.

Currently, many R/3 sites use separate G/L reconciliation accounts for different customer types (e.g., external customers vs. inter-company customers), but this separation is limited to the customer level and cannot go lower to the sales document or business areas. With reconciliation account determination for invoicing, you can make the debits and credits go to separate accounts.

The configuration behind reconciliation account determination is virtually the same as for revenue account determination, which is a more well-known and widely used functionality. I will demonstrate how you can use reconciliation account determination in the FI-A/R module in conjunction with a special G/L indicator, which is an even less well-known trick. The special G/L indicator manually adjusts the balances posted in the alternate reconciliation account. I've assumed that the reader has experience with revenue account determination or pricing (Figure 1).

Rohana Gunawardena

Rohana Gunawardena heads the SAP practice division at Exium Inc. Exium is a leading business and technology consulting firm that enables companies to achieve their strategic business goals. Exium specializes in delivering superior IT solutions using ERP systems, with a special focus on SAP products. Rohana has been working with SAP since 1992. During his career he has assisted multiple clients on detailed system correction projects, such as correcting inventory balances, controlling area reorganizations, retrospectively activating group currency, and optimizing inter-company accounting transactions. He has spoken at many SAP conferences and has published more than 20 articles in Financials Expert, SCM Expert, and SAPtips on various aspects of SAP. His presentations have focused on Financials module selection, the order-to-cash process, global rollouts, business segment reporting, cross-module integration, and the financial impact of SCM transactions. Rohana is widely acknowledged as a leading SAP expert. Rohana is a Fellow of the Institute of Chartered Accountants in England & Wales. Previously Rohana has worked with the consulting practices of Accenture, Deloitte, and PwC.

Rohana will be presenting at the upcoming SAPinsider Financials 2017 conference, June 14-16, 2017, in Amsterdam. For information on this event, click here.

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