Account Determinations

[Former Member]

GURUS,

What is the difference and use of following three different account determination? When we have to configure each of them?

1) Revenue account determination

2) Reconciliation acc dete

3) Cash acc deter ?

Thanks in advance.

Savi

[Former Member · Accepted solution]

Hi Savi Salvi,

1 Revenue A/C Detn: This is used to transfer the bililng values from SD Module to FI Modue. This is carried out using the condition technique.

This is defined in the particular pricing procedure of ur business process, there you define condition type and assign the particular Account key For Ex ERL - Sales Revenue, ERS - Sales Deduction and so on.

This revenue a/c detn will trigger the account key of SD module to FI module. ie based on the criteria that we maintain in the determination.

Revenue A/c Detn : Application + Cond Type + Sales Org + Chart of Account + Accont Assg Group for Payer + Accont Assgn for Material + Account Key + G/L Account(FI consultant will provide)

2. Reconciliation A/C Detn : Reconciliation Accounts are G/L accounts that receive postings from a subsidiary ledgers. Meaning, transactions data are not posted directly to recon accounts. Example of recon accounts are Accounts Receivable, Accounts Payable and Fixed Assets G/L. For accounts receivable G/L the subsidiary ledger is the customer account .All transactions with the customers are posted directly to the customer account and the recon account is automatically updated.

For maintaining the determination, The procedure is same as the Revenue a/c determination.

3. Cash A/C determination : Determines the condition types that the system uses for a certain document type (e.g. invoice) during determination of the G/L account for cash settlement.

For Eg : In certain business process, the client will be used with Cash Sale process, in this case the special bililng type BV and also the Account type : CVV(Cash Clearing) will be used in the determination.

For maintaining the determination, The procedure is same as the Revenue a/c determination

Regards

Ravishankar M

[Former Member]

Hi,

1) Revenue account determination: Revenue calculate with Price - discount +Surcharge + freight + Taxes = Revenue

So we need to pass on all these diff.-diff value to diff G/L account which further lined to diff. account keys (ERL,ERF,ERS,etcc).

We had already made this relationship that which condition type is assign to which account key. By this way we calculate the revenue which if finally reflect in the FI-CO

We have to set the system so that account determination is dependent upon the following master data fields:

Account group for material in the material master record(We find this in Mat. Master Sales Org.2)

Account group for customer in the customer master record(Account Assig. Grp. Billing Tab. page)

Reasonable subdivisions of materials can, for example, be:

Revenues for services (material type DIEN)

Revenues for packaging (material type VERP)

Revenues for finished products (material type FERT)

Revenues for trading goods (material type HAWA)

Reasonable subdivisions for customers can, for example, be:

Revenues for foreign customers at home

Revenues for foreign customers abroad

The revenue accounts are subdivided in financial accounting (FI System) to receive certain reports and/or to coordinate data with the financial statement (CO System).

You therefore have to define account determination or account groups in cooperation with financial accounting and cost accounting.

2) Reconciliation acc determination is same as Revenue account determination.

3) Cash account determination: In the normal process initially we give credit to customer so accounting entries is Customer Account is Debited to Company account and after payment these entries reversed. but in Cash Sales we received the cash at the time of Order booking so there is a diff. process here to determine the Revenue for cash sales.

These Procedure we need to assign to billing document so that when we relese billing document for accounting it will post the entries to respective G/L account.

Hope this will hepl you to understand.

Regards

Deepak

[Former Member]

Hi Deepak,

Thanks for reply, but my question is still not answered. I would like to know why these three determination process are there and when we have to configure each of them ? What is the difference between them?

Once again thanks.

Regards,

Savi