on 03-21-2011 7:00 AM
In a Lease-In scenario, our business process requires to pay a one-time cost to a Landlord for 99 years (Non-renewable). The desired accounting entry is:
Dr: Contract
Cr: Vendor (Land lord)
In the contract there is just one condition type "Purchase Price" assigned to one condition group "Long-term lease contracts". To achieve the above accounting entry how many flow types should be created? 1 or 2?
The vendor g/l account is a control account (with subsidiary ledger), and currently 1 flow type is configured as follows:
Current configuration is as follows:
Flow type 30, Debit posting
Flow type 30 assigned to condition type "Purchase Price"
Account Symbol 001 'Debit Acct' assigned to Flow type 30
G/L Account "9001020 - Land and Licensing' assigned to Account Symbol 001
Document type determination:
REOP One-Time Postings REDP Debit Posting 30 KR Vendor invoice
REPP Periodic Posting: Contracts REDP Debit Posting 30 KR Vendor invoice
Current error when running periodic posting for contracts is:
Flow type for postings is missing in object-related cash flow (Message no. RERAPP008)
Any suggestion as to what step is missing. I believe the vendor posting being a control account will be catered for automatically.
Hamdan
Hi,
I think u need to create two flow types. the first one is Dr: Contract to a clearing account (any clearing account type) and second one would be this clearing account to Cr: Vendor (Land lord). while posting through RERAPP take post+transfer option in the main screen
This is happening as the system is trying to post the cost on the object while posting. the scenario above the system will automatically post it to the object, if we use a clearing object and 2 flow types.
Regards,
Deepak
Edited by: deepak mahto on Mar 30, 2011 9:33 AM
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Dear Deepak,
From what i understand you have recommended the following entry, please confirm.
DR: CONTRACT (G/L 9001020 - Land and Licenses)
CR: G/L 4001001 - Clearing Account for Contracts [ --> This is a Liability type account ]
DR: G/L 4001001 - Clearing Account for Contracts
CR: VENDOR (Subsidiary Ledger)
Since one condition type can have only one flow type, how should the second flow type be assigned?
Hamdan
Dear Muhammad,
How have you defined your Condition Purpose - as "Posted" or "One-time Positng"?
If your condition type "Purchase Price" has condition purpose "One-time Posting", then you should use the one-time posting program (RERAOP) and create a posting activity, rather posting with the periodic posting program RERAPP.
Condition purpose with Internal condition purpose "Posted" goes with RERAPP and Internal Condition Purpose "One-time Posting" goes with RERAOP.
Hope this helps!
KR,
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