Clearing accounts

[Former Member]

Hi, Can somebody please explain what are these claering accounts meant for

Input Tax clearing account for down payments

FICO Reconciliation account

GR/IR Adjustment Accounts

Fixed Asset clearing account

Regards

[Former Member]

Please can you explain the remaning accounts too...

Input Tax clearing account for down payments

FICO Reconciliation account

Fixed Asset clearing account

[Former Member]

Hi,

Tax clearing accounts helps you to know the gross amount receivable or payable from customers or to vendor.

If you need to post tax on sales/purchases, you must determine whether the down payment should be displayed in the open item account and special G/L accounts with or without tax on sales/purchases.

If you select net display, the down payment is posted to the open item and the down payment account minus tax on sales/purchases. The tax itself is posted to the input or output tax account.

Thus the entry passed is

Dr Bank a/c 12000 Cr output tax 1000 cr customer account 11000 (in special GL account Cr 11000)

If you select gross display, the down payment is posted to the open item and down payment account including tax on sales/purchases. The tax itself is posted to the input or output tax account. To clear the tax, the amount is also automatically posted to a clearing account.

Thus the entry passed is

Dr Bank a/c 12000 cr customer account 12000 (in special GL account Cr 12000)

And also another entry also recoreded

Dr Output tax clearing account 1000 Cr output tax 1000

Gross display has the advantage that the down payment amount is displayed in the open item accounts including the taxes on sales/purchases, meaning that the whole amount of the payable or receivable is displayed.

Check this link for Reconciliation postings in CO

http://help.sap.com/erp2005_ehp_02/helpdata/en/66/bc7feb43c211d182b30000e829fbfe/frameset.htm

Radha

[Former Member]

Hi,

Clearing accounts are used for automatic posting. This helps in satisfying the double entry principle and helps in flow of financial transactions. For example take this scenario. Goods are received invoice not yet raised. At this point you need to record inventory but cannot credit to vendor account. Then the following entry is passed using clearing account

Dr Inventory Cr GR/IR account

when invoice is raised the following entry is passed.

Dr. GR/IR account Cr. Vendor

If any balance in GR/IR account indicates goods received but invoice not raised and shown as liability in the liabilities side of the balance sheet.

In the same whenever the FI flow is required these clearing accoutns are used.

You need to define the account number in the system for the automatic posting. You must specify the clearing accounts separately for each chart of accounts. You can differentiate the accounts per debit and credit postings. Since the automatic offsetting entry procedure can be used for any special G/L transactions, you can also differentiate the accounts per account type via the special G/L indicator.

Radha