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Jan 30, 2023 at 06:53 PM

Payment journal entry during Outgoing payment

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I am doing Vendor payment in Cloud Starter system, Payable domestic account is assigned as a reconciliation account to the Vendor, the journal entry for the same is below

21100000

Payables Domestic

abcd

11001020

Bank Transfer (Cash/S)

abcd

Also, there is a case where same debit entry of payment is happening in the Vendor account but I am not able to understand in which ledger does the corresponding credit entry is going. Please make me understand the exact scenarios happening in this situation and will like to know same situation during receipt from customer as receivables domestic is assigned as a reconciliation account. I am attaching screenshots of Vendor A/c, Payable domestic G/L and Bank G/L so that you will know the exact scenario.

Vendor A/c

Payables Domestic G/L A/c

Bank G/L

From your attachments, it seems the entries of reconciliation accounts and bank accounts should be like this:
Supplier Invoice 5100000002:
Dr. GR/IR (for example) 135,700.00
CR. 21100000 Payables Domestic (the reconciliation account) 135,700.00

Payment 1500000001:
Dr. 21100000 Payables Domestic 135,700.00
Cr. 11001020 Bank G/L 135,700.00
After these steps, the reconciliation account Payables Domestic 21100000 should be cleared. For more, please check the below link for https://help.sap.com/docs/SAP_S4HANA_CLOUD/031c345485b84c8c94265be9ef61d3a8/a9c0de2ae8c04ada95df67ccacc08152.html?locale=en-US&q=account%20payable

For the accounts receivable process, it is the opposite scenario. Kindly please check the portal for Accounts Receivable Accounting:
https://help.sap.com/docs/SAP_S4HANA_CLOUD/918bca53037f408f91a2295d04ac16bc/48170ad70c6c43bf87e8ce3351cb36c5.html?locale=en-US&q=account%20receivable