on 04-14-2016 4:22 AM
Hi Experts,
We have the below scenario I'm trying to figure out which is the best approach .,
Scenario
May I know which is appropriate solution for the above scenario
I was thinking of either Payment Orders or Bills of Exhange (BOE)
A.Payment Orders
A1.F110 can be generated and DME file showing the list of open invoices can be transmitted to CITi Bank
A2.Based on DME Invoice extract file CITI Bank makes payment to Vendor.
A3.On Due date how will company send payment extract file to CITI Bank ? is there a standard solution to support this step
A4. Clear the Vendor Open items using EBS ( Aligorthm 029)
My concern is if we implement PAYMENT ORDERS, how will we address step A3.
B. Bills of Exchange ( BOE)
Let me know your thoughts about BOE solution.
Your valuable inputs are highly appreciated and awarded accordingly.
Regards
Sanjai
Hi Sanjai,
I have used BOE route for it.
It was like:
1 Create a separate payment method and special GL indicator for it and do your all required configuration.
2. On payment run (F110), following accounting entry will get generated;
Vendor Account Dr (Normal Recon Acc)
To Vendor Account (Spl GL Recon Acc e.g. BOE payable)
It will clear normal open item and creates a special GL line item in vendor account. We can see outstanding BOE via report S_ALR_87012322
3. On receipt of report from bank (generally daily) for submission of bills for discounting by vendors, following accounting entry should be passed:
Vendor Account Dr (Spl GL Recon Acc e.g. BOE payable)
To outgoing bank
Payment Process ends over here.
4. During bank reco
Outgoing bank Dr
To Main bank account
Optional
If bank share the discount and credit us (arrangement fee etc).
Main bank account Dr
To Discount Received
Thanks and regards
Sonu Tomar
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Hi Sonu,
Thanks for your inputs,
I have few queries in BOE route.
After step2 , vendor account will still show open items ( with SPL GL ).
My concern after this step 2 and before step 3 is - There is a possibility of users wrongly posting a payment entry or again executing F110 second time , so that vendor open item which is showing as SPL GL would post a payment entry in second run right? Correct if I am not getting right.
In Step 3 - which transaction is used to post it ?
Regards,
Sanjai
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