Query regarding adjustment accounts and financial statement presentment

[former_member1107870]

Dear Gurus

I am configuring OBYP config so that F.19 can run. I have assigned GL account 225000 (GR/IR clearing account) and 2251000 ( GR/IR adjustment account) for adjustment account. Both the accounts are open item managed and post automatically.

I have also created a GL account 1150025 as 'Goods invoiced and not recieved' and GL account 2250025 as 'Goods received not yet invoiced'.

I have the below queries:

1. Should the GL account 1150025 and 2250025 be open item managed and mapped in FSV

2. Should these GL be part of FSV or not?

Once F.19 is executed two entries are created as below

Adjustment a/c Dr

Target a/c Cr

This entry is than reversed

Qué 3 can we not clear GR/IR for that date and not create the Additional accounts

It would be great if you can advise

[sanilbhandari · Accepted solution]

Hello kailashbhatt

Please find the answers to your questions below:

1. Both the GL accounts should be open item managed and also post automatically only. Making the GL accounts with manual entry will open a pandora's box for you !

2. The GL Account "Goods Received not invoiced" should be a part of FSV on the contingent liability side of the Balance sheet. The other account Invoice received and Goods not received should be on asset side

3. You can use either F.13 clearing for GR/IR account. In such a case, the net balance will be a contingent liability on the balance sheet. If you use F.19 it will be split separately into asset and liability side. It is upto you on how the balance sheet should be prepared.

Hope this helps

Thanks & Regards,

Sanil Bhandari