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Former Member

Payment Run and Reco account

Hello

I am a MM Consultant and would like to post basic quey for FI people.

We give the reconcillation acoount in The Vendor Master data.This account is same for every Vendor.This account is credited when we post Invoice via MIRO.

So while taking a payment run what happens to this rec account.As it is same for all Vendors what are the accounting entries in payment run dcoument.

Can anybody explain the Payment run process and GLaccount entries at that time?

Regards

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4 Answers

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    Former Member
    Jun 18, 2010 at 12:30 PM

    Hi,

    As you have understood correctly, the Reconciliation GL account is the main ledger account and the vendor numbers are the sub-ledgers of that GL account.

    When you post an Invoice through MIRO, the entry will be as follows -

    DEBIT GRIR Account

    CREDIT Vendor Account (which is nothing but the Reconciliation GL account)

    Now, when the payment is posted, the entry will be -

    DEBIT Vendor Account (which is nothing but the Reconciliation GL account)

    CREDIT Bank Account

    Thus, the Vendor account gets balanced.

    Regards,

    Mike

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    Former Member
    Jun 18, 2010 at 12:37 PM

    Hi,

    Reconciliation account -GL account

    Vendor Account-Sub ledger

    Reconciliation is useful to combine creditors balance, so we'll have creditors balance at any point of time through this single GL.

    Accounting entry:-

    MIGO:- Inventory Dr

    to GR/IR Clearing account

    MIRO:-GR/IR Clearing account Dr

    to Vendor account

    F110(APP):-Vendor account Dr

    to Bank account

    You can't post entries directly to reconciliation accounts. So, you have to take sub ledger for posting, in that way entries are possible in sub ledger and reconciliation level.

    In APP also, you have to give vendor numbers.

    Rgds

    Murali. N

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    Former Member
    Jun 18, 2010 at 12:43 PM

    Hi.

    Payment can be done with Special G/L indicator. It indicates which account to substitute according rec.Account and this indicator.

    For example: Vendor has Rec. Account 1. In Tcode OBYR you customize that

    if RecAccount 1 and Indicator A then Account 2

    if RecAccount 1 and Indicator B then Account 3

    See Tcode OBYR

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    Former Member
    Jun 21, 2010 at 02:19 AM

    Dear All

    Thanks for the reply.

    Can you further explain what is the main ledger account and sub-ledger accounts?

    Also while taking a payment run we make the payments with reference to Vendor or Vendor/Purchase Order or any other criteria?

    Which transaction should I use to post payment run>?

    Regards

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    • Former Member

      Hi,

      You have to use F110 for automatic payments postings.

      F-53 is for manual outgoing payments.

      Customer and Vendor accounts are sub ledger accounts because, if you post anything to subledger it automatically updates the GL account which is reconciliation account you maintain in Vendor/Customer master.

      GL accounts ledgers are main ledgers.

      Rgds

      Murali.N