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Equity Transaction Processing

Dear ByD Experts,

I have read "Manual Incoming Payments" help document, but it wasn't showing my case. My case is that I have the following entry: Dr. Bank Account Cr. Equity It is an incoming bank transfer, but from a shareholder.

How can I make it and gets reflected in the bank account? I am not aware of the feature of SAP ByD that lets me process this transaction.

Note: I enter "Bank Statement" manually.

Thanks, and Regards, Amr

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2 Answers

  • Best Answer
    Apr 05 at 12:49 PM

    Hi Amar,

    As we have discussed in our Expert Chat earlier:

    You are looking for a way of transfering an incoming payment to an Equity Account, e.g. an amount resulting from subscribed share capital.

    Via Account Determination it is possible to allocate payments to Balance sheet accounts:
    In the Fine Tune Task Charts of Accounts, Financial Reporting Structures, Account Determination go to Account Determination and here select General Ledger.
    Navigate to the Others tab.
    Here, the options 'Other Assets' and 'Other Liabilities' are available.
    But, you are looking for a similar option to directly assign postings to Balance sheet accounts of type 'Equity'.

    Subsribed Share capital can, however, be classified as 'Other Liability'.
    And therefore it is also possible to assign accounts of type 'Equity' here.

    This means, the steps to achieve an incoming payment posting directly to your Equity Account will be:

    First create an Account Determination group in the Fine Tune Task Charts of Accounts, Financial Reporting Structures, Account Determination under Edit Account Determination Groups'.
    Create the new group in General Ledger - Groups for Other Liabilities.
    Ensure that this Account Determination groups is Available for 'Non-Cash Form of Payments'.
    Press Save and Close.

    Now assign the respective Balance sheet account to this group:
    In the same Fine Tune activity go to Account Determination and click on the General Ledger link.
    Navigate to the Others tab.
    Select the option 4-Other Liabilities.
    Add a new row to add your new account determination group on the left and to assign the G/L account of type Equity in the Other Liabilities Column on the right.
    Press Save and Close.

    Posting Logic:

    With the posting of the bank statement the selected Bank Account will be debited with the incoming payment amount. The balance will be offset with a Cash in Transit account, in Credit.
    Once the payment is allocated to the Equity account then the cash in transit account will be debited again and your Equity account is credited.

    Please let us know in case of any further questions.

    Thanks a lot and kind regards,

    Caroline

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  • Apr 04 at 10:13 AM

    I read about "Private Capital Contribution"; but how can I access it? Thanks.

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    • Hello Amr,

      This is not found in Business by design.

      Could you explain us in detail what exactly is the question ?

      Thanks & Regards,

      Manasa