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Budget check at Technical Clearing Account (New Asset Accounting)

Nov 03, 2016 at 03:05 AM

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Dear Expert

I would like to seek advice on the best approach of maintaining budget for asset in new asset accounting.

We are using parallel ledger approach.

We have activated PSM-FM

My requirement is budget check at PR level when purchasing the new asset.
Currently we are using technical clearing account for budget check, as the GL derived in PR is technical clearing account.

We have separated each technical clearing account for each asset class.

I understood the technical clearing account purpose is only to split the document for parallel ledger posting and the balance will be always to be zero.

If I use the technical clearing account as budget checking, how would it be affecting the reporting? Is this the correct approach? Or shall I use asset recon GL as budget check rather than technical clearing account?

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2 Answers

Aleksey Tkachenko
Nov 08, 2016 at 12:43 PM
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Hi.

"Currently we are using technical clearing account for budget check" - you mean you use account for CI derivation?

'how would it be affecting the reporting' - which reports do you mean? PSM-FM or FI?

Do you post migo(if yes then post entries which you have) or only miro? Do you have parallel accounting, if yes then Account or Ledger based?

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Eli Klovski
Nov 14, 2016 at 10:19 AM
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Hi,

Why would it be 'technical clearing account'? When you purchase an asset, your G/L account should be that derived from asset class, i.e. asset reconciliation account. You should put the budget on a commitment item linked to that account. When PR is raised, the budget will be checked against this budget line and FM address will be further adopted by PO, GR/IR, etc.

Regards,

Eli

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