A business enterprise wishes to see certain business in its sub ledgers separately unlike its routine transaction. They want certain identification to those transactions so as to filter them from the lot with ease. The reason for identification could be important. The transactions could be down payments, individual value adjustments and so on.
How does Special G/L functionality work?
SAP has a concept of reconciliation accounts where in each sub ledger has a GL Account known as a reconciliation account maintained in its master data. The Reconciliation Account field can be found in the company code segment of the customer/vendor record. Transactions posted in the sub ledgers are also posted to the reconciliation Account. The aim is to have the values reflect in the Financial Statements through General Ledgers. To determine the balances of the Account Payables and Account Receivables the reconciliation Account can be displayed instead of searching for the values in the sub ledger.
Special G/L Transactions are transactions in the Accounts Payables and Accounts Receivables, which are, displayed separately In the general ledger and the sub ledgers. Transactions in the sub ledgers are linked to the general ledger by the reconciliation account defined in the sub ledger master record, If the sub ledger account assignments are made using a special G/L indicator, the postings are made on an alternative Reconciliation Account (Special G/L Account) to allow these transactions to be displayed separately.
Special G/L Transactions Classes:
As per SAP the special G/L transaction can be roughly divided as per their main purpose into three classes:
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Down Payments
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Bills of Exchange
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Other Transactions
Transactions in connection with down payments: The SAP System provides special pre configured programs and entry screens for the administration of requested, received and used down payments for AR and AP sub ledgers. These are integrated with dunning and payment programs, which is a big advantage so as to track, and post, without having the DP of each customer/vendor.
Transactions in connection with Bills Of Exchange: Bills of Exchange are used to deal with country-specific particularities. The SAP system contains special pre configured programs and screens and the transaction codes are available for BOE in AR and AP.
Other Transactions: There are other transactions also available in special GL transaction in the menu under the Others like Guarantees, individual value adjustments etc.
Types of Special G/L Transactions:
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Automatic Offsetting Entry (Statistical).
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Noted Item
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Free Offsetting Entry
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Automatic Offsetting Entry (Statistical):
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These entries are always made on the same offsetting account. To simplify the posting procedure
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The number of the account for the offsetting entry is defined in customizing. Hence the offsetting is made automatically by the system.
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When open items are cleared system clears the offsetting account automatically.
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These transactions are called statistical postings as they are in the notes of Financial Statements.
Example:
- Guarantees of payment made over 10000
- Guarantees of payment cleared 10000.
Customer Account
1 Invoice 1000
2 Invoice2000
Guarantees Made 10000 Guarantees Cleared 10000
Reconciliation Account
Invoices3000
Guarantees Paid
Guarantees Made 10000 Guarantees Cleared 10000
Predefined offsetting Account
Guarantees Cleared 10000 Guarantees Made 10000
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Noted Item:
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Noted item are Special G/L Transactions with informational character, which only remind the user about due payments or payments to be made.
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They are not displayed in GL.
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Only one line item is created when a noted item is created
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No offsetting entry is made.
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No zero balance check is made.
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Payment Program and dunning program also consider noted item for further processing.
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Noted items are open items
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Always activate line item display for these accounts.
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No Transaction figures are updated in Noted Items.
Example:
-Down Payment Request of 10000.
Customer Account
1 Invoice 1000
2 Invoice2000
Down Payment Request 1000
Reconciliation Account
Invoices3000
Down Payment Requests
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Free offsetting entry
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Special G/L transactions defined as free offsetting entries create proper postings in the General Ledger.
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The Alternative reconciliation account is debited or credited automatically depending on the type of posting. The user must enter the G/L account while making the entry.
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Usually a part of financial statement.
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Posting with freely enterable/selectable offsetting account.
Example:
-Down Payment 11000 Received.
Customer Account
1 Invoice 1000
2 Invoice2000
Down Payment Received 11000
Reconciliation Account
Invoices3000
Down Payment Received
Down Payment Received 11000
Free Offsetting Account
Down Payment Received 11000
