Payment Run and Reco account

[Former Member]

Hello

I am a MM Consultant and would like to post basic quey for FI people.

We give the reconcillation acoount in The Vendor Master data.This account is same for every Vendor.This account is credited when we post Invoice via MIRO.

So while taking a payment run what happens to this rec account.As it is same for all Vendors what are the accounting entries in payment run dcoument.

Can anybody explain the Payment run process and GLaccount entries at that time?

Regards

[Former Member]

Dear All

Thanks for the reply.

Can you further explain what is the main ledger account and sub-ledger accounts?

Also while taking a payment run we make the payments with reference to Vendor or Vendor/Purchase Order or any other criteria?

Which transaction should I use to post payment run>?

Regards

[former_member188028]

Hi,

You have to use F110 for automatic payments postings.

F-53 is for manual outgoing payments.

Customer and Vendor accounts are sub ledger accounts because, if you post anything to subledger it automatically updates the GL account which is reconciliation account you maintain in Vendor/Customer master.

GL accounts ledgers are main ledgers.

Rgds

Murali.N

[Former Member]

Hi.

Payment can be done with Special G/L indicator. It indicates which account to substitute according rec.Account and this indicator.

For example: Vendor has Rec. Account 1. In Tcode OBYR you customize that

if RecAccount 1 and Indicator A then Account 2

if RecAccount 1 and Indicator B then Account 3

See Tcode OBYR

[former_member188028]

Hi,

Reconciliation account -GL account

Vendor Account-Sub ledger

Reconciliation is useful to combine creditors balance, so we'll have creditors balance at any point of time through this single GL.

Accounting entry:-

MIGO:- Inventory Dr

to GR/IR Clearing account

MIRO:-GR/IR Clearing account Dr

to Vendor account

F110(APP):-Vendor account Dr

to Bank account

You can't post entries directly to reconciliation accounts. So, you have to take sub ledger for posting, in that way entries are possible in sub ledger and reconciliation level.

In APP also, you have to give vendor numbers.

Rgds

Murali. N

[Former Member]

Hi,

As you have understood correctly, the Reconciliation GL account is the main ledger account and the vendor numbers are the sub-ledgers of that GL account.

When you post an Invoice through MIRO, the entry will be as follows -

DEBIT GRIR Account

CREDIT Vendor Account (which is nothing but the Reconciliation GL account)

Now, when the payment is posted, the entry will be -

DEBIT Vendor Account (which is nothing but the Reconciliation GL account)

CREDIT Bank Account

Thus, the Vendor account gets balanced.

Regards,

Mike