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Financial Forecast

Jun 16, 2017 at 07:25 AM

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Hi,

I hit an error while trying to do GR. Error is as per below:

"Forecast Posting Scheme Purchase Order, Acc. Xategory Cash Account: Acc. Det. Group Missing."

After searching in Help Center, I found out that the error is relevant to financial forecast. However, I don't quite get the configuration and the posting logics behind it. The explanation provided is vague.

"Financial posting schemes are used in automatic processes as well as in budget queries to enable comparison of forecast with actuals, for example, in theCost Centers – Plan/Actual/Forecastreport.'

Could anyone help to explain:

1) The concept of financial forecast.

2) The financial forecast double entry.

3) The business transaction that will trigger posting of financial forecast document.

I would like to understand in detail to ensure my set up and explanation to the users are correct.

Thanks

Regards,

DK

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1 Answer

Harshal Vakil Jun 19, 2017 at 08:26 AM
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Hello DK,

Yes, the error is due to the forecast settings. Since you have enabled financial forecasting and also assigned the forecast posting scheme to be used for procurement (Purchase order) when you try to post the GR, system looks for the settings and does not find the account determination fro cash which is needed to create the planing item in financial forecast. This settings are maintained in activity : Financial Forecast.

To Answer your query

1) The concept of financial forecast

A : when the financial forecasting is scoped and enabled, when purchase order is posted, system creates the forecast planning item. (this is not an accounting entry but rather a notification to sent from purchasing to accounting to create the planning item.) This forecast planning item is then used forecast the budget or can be used to compare plan/forecast/actual.

2) The financial forecast double entry

A : No this will not create the double entry in accounting (as such there will not be any separate posting in the accounting and only document posting Journal entry will be created according to the settings). Forecast will only send the notification (or let's say information to accounting to include the transaction in financial forecast).

3) The business transaction that will trigger posting of financial forecast document.

A : None of the business transaction will trigger posting in accounting.

So the flow is :

When purchase order is posted, System will use the settings maintained for the Completing business transaction type as : "301 - Goods Receipt from Supplier" and create the notification to accounting.

This notification will use account determination groups maintained for the row and determine the GL. Notification then informs accounting that posting is expected for the Determined GL account when GR is posted.

Similarly when GR is posted, settings maintained for the completing business transaction type : "201 - Supplier Invoice" will be used and accordingly notification will be sent to accounting.

I hope this will answer to your concerns.

Regards,

Harshal

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