FB50 - journal entry

[Former Member]

Hi All,

In FB60 , we post vendor invoice and in FB70 we post customer invoice, what is the use of FB50 , why we post SA document , debiting one account and crediting another account with the same value to make the balance zero.

Does it has anything to do with vendor and customer invoice postings.

Please give me detail explanation.

Thanks in advance

[former_member184878]

Hello,

DE:

make provision EUR 10.000 (P&L account)

CE:

reserves (balance sheet account) EUR 10.0000

by the way:

this is not an SAP quesition, this is Finance basics quesition

Why do we  make GL posting.

br erwin

[Former Member]

fb60 for vendors with multiple line items in single screen --------------- in f-43 we can also post multiple line items but  in different screens here we have to mentions posting keys every line item

FB70 for customers ------------its like a f-22 remaining same as above

coming to fb50 its like f-02

example in fb50

expenses

rent........500...................Debit

salary.....1000 ................Debit

telephone exp....200........Debit

Cash/Bank ........1700......................Credit

like this we can post line items in single screen here, Postings keys are not required but we have to mention debit/credit

Hope this will help you

instead of saying thanks please add points for me

[Former Member]

Hi Srikanth,

I agree and I know that when you debit an account and credit another account to record a business transaction in accounting.Both can be P/L or Balance sheet account or either P/L or Bal. sheet account.My question is like when you post the vendor invoice you are crediting the vendor in the FB60, likewise why we are doing GL posting?What is the basic need of it?

[Former Member]

Now I am lost! There is a communication gap here. You yourself said, "I agree and I know that when you debit an account and credit another account to record a business transaction in accounting." And you are asking, "why we are doing GL posting? What is the basic need of it?"

Even when you do FB60, for the vendor credit entry, there is a posting on the reconciliation GL account. Vendor credit is just an AP sub-ledger posting.

When you do FB50, there are no AR/AP/AA sub-ledger postings. They are pure and direct GL postings. Accounting is not all about Vendor and Customer postings. You do have other postings like taxes you need to pay to the government, interest you receive from banks, interest that you need to pay on loans, share capital, goodwill and so on.

[Former Member]

When u said, debiting one account and crediting another account with same value. Why are we require to do that , why we are interchanging the values between two accounts what is the purpose behind that?

Would appreciate your answer

[Former Member]

Now we are leaving SAP and slowly moving into basic concepts of accounting; good! You debit an account and credit another account to record a business transaction in accounting (the "same value" goes without saying, because it is a basic principle of double-entry system of accounting - thanks to Luca Pacioli).

One more comment on one of the replies above that FB50 is for cross-company postings. The statement seems to be limiting the use of FB50 to cross-company postings, which is not correct. And for that matter, you can post a cross-company code posting using FB01 also. FB50 is a single-screen transaction of SAP which enables posting multiple line items in one screen.

[Former Member]

Hi Reema,

FB50 is being used to post Cross Company code Transactions as it permits you to enter different company codes in a single screen.

Regards

Phani

[Former Member]

As you said, it is for pure G/L postings. But "to make the balance zero" is not correct. When you are debiting one account and crediting another account, you are actually changing account balances of two accounts. It has nothing to do with vendor and customer invoice postings.