What is On Account & Clarification Account in FICA?

[Former Member]

Dear Experts,

I am working as a Auditor,recently i went to IS-U FICA Auditing there i find two GLs name

1.On Account

2.Clarification Account

why they are using ? and whts the purpose? Please clarify

Regds.

Abash

Edited by: abash.. on Feb 18, 2012 9:27 AM

[ivor_martin · Accepted solution]

Hi,

Clarification Account is a G/L account that is used to temporarily post payments to when the system cannot determine which Business Partner/Contract Account to post a payment to (e.g. invalid Account number incoming from the bank payments file).

These items are placed into a Clarification list, and as the user applies to the proper Contract Accounts, the Clarification G/L Account is debited and the respective Business Partner's open item is cleared.

You have the option of configuring one Clarification Account for each Bank Clearing Account, but most implementations use the same Clarification Account for all banks.

The configuration path is under Payments->Processing Incoming and Outgoing Payments ->Define Clarification Account

Payment on Account is a situation where the value iof the incoming Payment amount exceeds the sum of open items to be cleared. The system woudl need to know which Reconciliation Account the open credit should be allocated to. In most implementations, this would default to the Reconcilation Account that the business uses for Billed consumption Receivables.

You have the option to configure a different Reconciliation Account for overpayments(Payments on Account). The configuration for this Reconciliation Account is in Posting Area EK01, which can be accessed using configuration transaction EK01.

I hope this helps you out. You could also check the SAP Utilities Âpplication help for Business Transactions ->Payments

http://help.sap.com/erp2005_ehp_05/helpdata/en/ec/6d2c427a3aca7ee10000000a1550b0/frameset.htm

I hope this helps.

Regards,

Ivor M.

[Former Member]

Dear Ivor

Thanks a lot for Great Help

My problem solved

Regds,

abash