SAP BYD Why Reclassification gl account needed in Account receivable & Account payable gl Mapping ?

[former_member470602]

Path : Business configuration -> Chart of accounts -> edit chart of accounts -. Account determination profile gl mapping -> Accounts payable -> Reclassification account

Here i will mapping Reclassification account why ???

Regards,

Krishna

[sanilbhandari · Accepted solution]

Hi

From a pure accounting perspective, any credit balance on a customer account should be shown as payable and any debit balance on vendor account should be shown as recievable. You would need to show, when the period end balance sheets are finalized. How you do that, is through regrouping and the path mentioned by you is one of the step in setting up this process. The below blog from sap.shakeel should be quite useful.

https://blogs.sap.com/2018/01/15/ar-ap-regrouping-in-sap-s4-hana-finance/

Thanks & Regards

Sanil Bhandari

[former_member470602 · Accepted solution]

Thanks Sanil