Purpose of Provision Account field in VKOA settings

[Former Member]

Dear Experts,

Kindly share the purpose of Provision Account field in VKOA settings, where will it impact if we assign some G/L in this field and what happen if we do not assign any G/L in this field. Kindly explain with some example.

Warm Regards,

SAP SD

[moazzam_ali · Accepted solution]

Hi

You can see Accrual tick in condition settings in V/06., If you mark this tick then it means this condition will have two posting. Debit and credit posting from one condition. In this case you have to assign two account keys in V/08 with this accrual condition. Debit and credit account key and in VKOA we assign debit and credit GLs.

We can take an example of monthly discount. If you want to give discount and want to accrue it for this month and will give to customer in next month (due to company policy) you can use this accrual functionality. At the time of invoice system will debit the expense and credit the payable liability and in next month when you give discount through credit note then customer will be credited and payable liability will be debited.

Let me know for further assistance.

Thank$

[Former Member · Accepted solution]

Hi MoazzaM,

Thank you so much for your reply.

To understand more clearly, for e.g. if we have assign G/L "11111" in VKOA in G/L field and G/L "22222" in Provision A/c field.

If total amount is 100 and discount given is 5% then which amount and accounting entry will hit which G/Ls.

Warm Regards,

SAP SD

[Lakshmipathi · Accepted solution]

Please go through the F1 help before raising such queries.  It says

The above statement very clearly says, if a condition type is set to accrual or rebate, then only, this field (Provisional Account) will come into picture.

G. Lakshmipathi

[moazzam_ali · Accepted solution]

Hi

As suggested by Mr, Lakshamipathi please go through F1 help document and get the idea of how accrual condition works in SD. We maintain accrual amount separately and it has nothing to do with discount or net value. In your above example accounting entry will be showing discount and net sales revenue etc. For accrual you'll have to maintain some value in accrual condition separately.

Thank$

[phanikumar_v3 · Accepted solution]

Dear Moazzam,

Really helpful explanation that to with the accounting entries.

Phanikumar

[phanikumar_v3 · Accepted solution]

Dear SAP SD,

I can understand your issue while learning we all will get.

i respect your enthusiasm in keen learning.

i can share with you that pl do one practise session on Rebates with BO01/02 condition types.

You will get more clarrification.

Phanikumar

[siva_vasireddy2]

Hi,

if you Assign the GL Account the entries in the invoice are posted through Accounting Key in the Pricing procedure

If the GL account is not Assigned the values will not be posted and shows the error if Account Key is Already Assigned