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Conditions - Flow Types and Reference Flow Types

Hi,

Can anyone please help explain the relationship between Condition, flow types and reference flow types. I am  not sure as to how many flow types must be assigned to a condition. What does a flow increase, decrease and transfer mean, must the three be defined for each condition.

Prompt responses will be highly appreciated.

Regards.


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1 Answer

  • Best Answer
    Jan 07, 2015 at 05:14 AM

    Hi FT Ola,


    We use conditions to create planned records in the cash flow for postings that will be generated during periodic posting, these planned records are converted to actual records, that is, postings in Financial Accounting. The condition amounts are thereby posted to the customer or vendor accounts with the help of flow types, without linking to flow type we can’t take these conditions to postings.


    The flow type influences account determination and is typically derived from the condition type. And also for each condition type one flow type is required to assign.

    Then With certain business transactions, postings cannot be made using the flow type that was originally assigned (the flow type derived from the condition type). For such transactions, reference flow types must be assigned.

    Reference flow types will helps to track the amount increase / decrease differential amount from the condition during postings.


    Example: your rent / month is 50000 initially (01.01.2014-31.12.2014), after one or two months postings you need to increase/decrease the rent (as 55000 / month), if you want to do changes in same condition the difference amount for the already posted conditions also will be flowing and tracking by Reference flow types.

    If you did not added any ref, flow types then variations / changes in conditions during postings will not be traceable, so it’s suggested to add reference flow types with incremental / decreased conditions.


    Reference flow types are necessary so that the posting processes for the following business processes can be made:

    Vacancy postings / Own usage / Accruals or deferrals / Follow-up postings due to backdated condition changes / Posting of service charge settlement results

    Below link will explain you about reference flow types and its usage based on your condition / requirement you can assign those reference flowtypes to your conditions.

    http://help.sap.com/saphelp_46c/helpdata/en/f4/1e4b6e5733d1118b3f0060b03ca329/content.htm

    Hope it’s helpful to you.

    Thanks,

    Subbarao

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