GL Account Posting Impact - DP91 vs. VF06?

[Former Member]

I'm trying to determine when the actual general ledger accounts are posted to in an Order to Cash process for a federal client. Based on my initial research, it appears the execution of transaction DP91 initiates a Debit Memo request. Does this transaction generate any kind of general ledger impact at the time of the DP91 execution? From what I understand, transaction VF06 executes in batch for background billing (which creates the actual Debit Memo?).  It appears there is a budgetary (BL) entry and a proprietary (GL) posting that occur as part of VF06. The BL entry is to debit Reimbursable Income Earned Receivable and credit Unfilled Customer Orders Without Advance. The GL entry is a Debit to the AR/Customer account and a credit to Operating Revenue. Is this understanding correct as to when the GL account are posted to? I cannot locate any documentation on the timing of GL postings (as they relate to transactions). If anyone knows of helpful documentation in this area please advise.

Thank you.

[Former Member]

Hello,

We do Resources Related Billing. It is correct that DP90 or DP91 creates a debit memo request with no FI posting. The subsequent transaction VF01 or VF06 creates an SD billing document that is also transferred to FI as an AR document.

Hope this helps.

Best regards,

Ming

[Former Member]

Ming,

Thank you for your response, it is very helpful. I do have one follow up question for you. In your current Resource Related Billing process, is there any transaction executed between the DP90/91 and VF01/06 processes? i.e. Do you execute any separate revenue recognition transaction such as VF44 or is that accomplished within the execution of VF01/06 as well?

Best Regards,

Chris

[Former Member]

Hi Chris,

No, we do not run VF44. Revenue recognition is for periodically billing customers based on sertain rule. Our process is kind of not so standard. We use service orders. Users post some FI JV entries to book cost and revenue to the service orders. DP90/DP95 then creates debit memos and sbsequently VF01/VF06 bills the customers.

Regards,

Ming

[Former Member]

Chris,

You are correct in what you are seeing.  The Debit Memo Request (DP90/DP91/DP95/DP96) does not have a financial impact.  The billing document (VF01/VF04/VF06), creates the proprietary posting (ex, Dr 1310/Cr 5200) and the corresponding BL (ex, Dr 4221/Cr 4251).  These postings will be somewhat different if it's an Advance scenerio.

Let me know if you need anything further.

Thanks,

Todd