GL account assignment in VKOA

[Former Member]

Dear All,

I would like to know the reason as to why there are two G/L account columns are available in VKOA (Account assignment).

What is the purpose of assigning two different G/L account for same record?

Could you please revert on this?

Regards

Manivannan R

[Former Member · Accepted solution]

The First GL Account column is to enter the GL Accounts to which Revenue is posted. The Second GL Account field is normally kept blank. But if you have a business process wherein on billing, you want the revenue to be posted to an Accrual Account, then you maintain the Balance sheet Accrual Account in the Second GL Account column. This would generally be used for Business processes where revenue is recognized not based on billing but is recognised separately

For example in media industry (Newspaper Subscription). In subscription, you collect the money from the customers in advance for the subscription period but delivery of the newspaper happens on a daily basis.

Therefore, in a such a scenario, you do not recognise the Revenue when the money is collected but the revenue is recognised after the newspaper is delivered to the customer. In such a case, when billing is done upfront, the total amount received is considered as a Accrued Revenue and Posted to the GL Account entered in the Second Column,

Then there is a separate process like revenue recognition by which the revenue is transferred from the Accreud Revenue Account to the Revenue Account (First column)

Sam

[Former Member]

Hi,

Take the example of rebate. The rebate will be paid back to the customer once the volume or the period is reached. The amount will be accumulated as accruals. So we need to maintain both of these G/L accounts.

Prase

[Former Member]

<b>The second G/L account is used for accrual posting, for example, in rebate processing.</b>

Please refer to the below extract from saphelp

"Assign G/L Accounts

In this menu option, you allocate G/L accounts for revenue account determination. You have to make the allocation for every access sequence you have defined beforehand.

A variety of criteria is valid for a G/L account, depending on the key combination. For the key combination "Customer account determination group/Account key" a G/L account depending upon the following criteria, for example, is given:

Application (key for SD application)

Account determination type

Chart of accounts (from the module FI)

Sales organization

Customer account determination group

Account key

Requirements

For the condition technique, access sequences, account determination types, account determination procedures and condition tables must be defined in Sales and Distribution. Chart of accounts and G/L accounts must be defined in the module FI.

Actions

1. Check to what extent you can use the allocations contained in the standard SAP R/3 System.

2. Allocate the G/L accounts for each access sequence. <b>The second G/L account is used for accrual posting, for example, in rebate processing.</b>"

Thanks