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Check encashment entry for incoming payment

Former Member
0 Kudos

Dear Viewers,

I would like to know how utillity companies are handling the customer check encashment in FI-CA.

Let's say customer is giving the check. The entry is posted as follows:

Dr. Incoming Check clearing account

Cr. Business partner account.

At the time of uploading the bank statement in FI-CA the should be posted as follows:

Dr. Main bank account

Cr. Incoming Check clearing account

I am trying get the solution in FI-CA for the incoming check encashment. Could anyone please help me to get the soultion for this.

Thanks in advance..

Thanks

Aswin

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi Aswin,

Are you talking about Outgoing payments? Cheques created through payment run FPY1?

Thanks

Natalie

Former Member
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Hi Natalie,

No, I am talking about incoming payment which is created through FP25- Check Lot

Thanks

Aswin

Former Member
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Hi Aswin,

How we reconcile our incoming cheques is as follows:

1. Create Check Lot through FP25 and post the total of received cheques to Inc Cheque Clearing Account

DR IncChq Clearing Account

CR Receivables Control

2. Then when we bank the cheques at the bank, we get a summarised entry on our bank statement which clears as follows:

DR Bank

CR IncChq Clearing Account

Natalie

william_eastman
Advisor
Advisor
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Natalie:

Do you use FF67 (or the automatic) with configuration which specifies the accounts and postings made by the bank statement entry?

regards,

bill.

Former Member
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Hi,

We use FF_5 or FF.5 and yes we have the transaction code config to post to the Inc Cheque Clearing account. This is set up through a posting rule. In the posting type for that posting rule we set to 5 - Clear credit G/L act so that it automatically clears based on amount.

Natalie

Former Member
0 Kudos

Dear Natalie,

Thank you so much for your immediate reply on this.

I have tried as you mentioned. But When I upload the bank statement the clearing is not happening in FICA .

Dr Bank A/c,

Cr. Incoming celaring A/c

Our client wants to do the above entry in FI-CA not FICO.

When I upload the bank statement through FF_5 FICA related payments are transferred to FICA but the clearing entry is not happening.

Is there any specific configuration settings are available to post this entry in FICA? If you can send me the help documents, It would be very helpful to understatnd this functionality well..

Thanks in advance for your help.

Thanks

Aswin

Edited by: Aswinkumar.V on Jul 18, 2010 9:18 AM

Edited by: Aswinkumar.V on Jul 18, 2010 9:21 AM

Former Member
0 Kudos

Hi Aswin,

I am a little confused about what you are expecting to happen in FICA. These are incoming cheques and therefore after you clear the Check Lot total in the clearing account with the deposit from the bank there is nothing else to do.

If you are a talking about Outgoing cheques and wanting the cheque presentation to occur in FICA then this does require config. Or if you are talking about incoming payments that are coming in on the bank statement and you want to transfer them to FICA through a payment lot, then this is also a seperate matter.

Can you please expand on what you are expecting to happen in FICA?

Thanks

Natalie

Former Member
0 Kudos

Dear Natalie,

Once again thanks for your attention..

I have created the check lot. I have given the customer check number in the check lot. The entry is posted as follows:

Incoming Payment entry

Dr. Incoming check clearing account

Cr. Customer account.

After that the above check will be deposited in to bank. If the check is cleared, it will appear in the bank statement.

I have uploaded the bank statement through FF_5. Now; I am expecting that, the following entry should be posted in the FI-CA:

Clearing Entry

Dr. Main Bank account

Cr.Incoming check clearing account.

My doubt is that where the clearing entry will be posted. Is it in FI-CA or FICO?

But my client wants to post the clearing entry in the FI-CA since, client is having the separate bank account for FI-CA.

Hope this clears my requirements

Thanks

Aswin

Former Member
0 Kudos

Hi Aswin,

The clearing has to be done in FICO for the bank clearing entry. In the scenario that you have illustrated below the document is created in FICA, but when it is transferred to FICO that is only then, when it becomes a document that can be cleared.

Dr. Incoming check clearing account

Cr. Customer account.

The above entry will create entries in DFKKOP for the customer account lines (either as a clearing document if you cleared them directly against an open item, or as a item that can be cleared) and then a posting to DFKKOPK for the GL line item. Entries in DFKKOPK don't have a clearing status assign to them. It is only when you transfer this document to FI-CO that the document becomes one that can be cleared.

Ask your customer where it is that they do their reconciliation to determine what check lots have been created and not banked. I am sure that they will say that it is a open item GL account display (FBL3n - depending on version). That is FI-CO, not FI-CA, even though it originated from there.

Natalie

Former Member
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Dear Natalie,

Sorry for the delayed reply. Thank you so much for your detailed answer.

I have tested the same in FI-CO it's working fine.

Since every day more than 1000 checks are received from the FICA customers. All the 1000 Cheques are transferred to FICO where I can do the reconciliation. But our client wants to do the reconciliation in FICA, since seperate bank account is maintained only for FI-CA payments.

I understood that, it is possible in FI-CO only not FICA...

Thanks

Aswin

Answers (1)

Answers (1)

Former Member
0 Kudos

This message was moderated.