Secured, Unsecured Loans and Advances

[Former Member]

Hi

How is Secured and Unsecured Loans handled? Do I make one secured loan account or should i make secured loan to x account, sec loan to y account, etc.

Same with unsecured loans.

Also, in case of advances to vendors and advances from customers, can I handle it without using Special G.L Downpayment? How?

Thanks

[Former Member]

Hi Nihar,

1) You have to create 2 GL accounts for secured loan and Unsecured loan

2) For Adavance from customer and Advance to Vendor you have to create two more GL accounts and use special GL indicator(A) to post into it.

Adavance from Customer : GL account (Reconcillaiton account ) , Liabilites account, Balance sheet

Adavance to Vendor : GL account (Reconcillaiton account ) , Asset account, Balance sheet

Regards

Ashish Jain

[Former Member]

Hi Ashish,

So in that case the parties from whom secured/Unsecured loans have been taken should be created as VENDORS?? and how will you link the G/L to this vendor?

Thanks

[Former Member]

Yes you can link using T-code:OBYR

Regards

Ashish Jain