Difficult scenario

[atif_farooq]

Dear Experts:

I have created a vendor account group for the purpose of vendor master data creation ZMG for one of our unique vendor Samsung. I have not yet defined recon account for it due to the confusion. The problem is there will be many vendors created under ZMG group for catering the nature of services they will be providing to us(advertisements, marketing e.t.c). Samsung is our main vendor and sometime we will be receiving advance payments from it for incurring expenses and on other occasions we will be receiving them as reimbursements when we have paid to vendor on behalf of Samsung. Now there are three situations which creates confusion

1: We pay on behalf of Samsung, in this case Samsung may provide us funds in advance or after when we have made the payments ,now how to cater this scenario, because in advance case Samsung becomes our vendor and in later case Samsung becomes our customer, which recon account to be attached ,its nature and how to knock of payments e.t.c

2: In third and last scenario Orient (we) share burden of expenses with Samsung in 40:60 respectively. 40 % will be expensed. Remaining 60% will be borne by Samsung and it will be paid by us initially on behalf of Samsung.

Please help me sort out this problem

Regards

[atif_farooq]

I found solution myself.

[iklovski]

It would be nice to share the solution on the forum...

[atif_farooq]

Dear :

Here is the solution

1-a Advance from Samsung received F-02 Incoming Bank will be debited with Posting Key 40(document type KR)

Vendor will be credited with Posting key 31

1-b Advances utilized in full for vendor payment F-53 Inputs for vendor and bank along with relevant amount will be entered

2-a Advance from Samsung received(for 60% of amount which we have to pay on behalf of Samsung) F-02 Incoming Bank will be debited with Posting Key 40(Document type KR)

Vendor will be credited with Posting key 31

2-b Expense (marketing, advertisement e.t.c) will be booked here against vendor FB60 Relevant inputs will be given

2-c Payment will be made to vendor F-53 Relevant inputs will be given

3-a When we pay on behalf of Samsung first and reimbursements are received later F-02 Vendor will be debited with Spcl GL indicator N with Posting key 23(check calculate tax)

Bank will be credited with posting key 50

3-b When reimbursements received from Samsung F-02 Incoming bank will be debited with posting key 40

Vendor will be credited (with special GL indicator N with posting key 33)

4-a When we pay on behalf of Samsung first and reimbursements are received later in 40:60 ratio F-02 Vendor will be debited with Spcl GL indicator N with Posting key 23 by 60%(check calculate tax)

Relevant GL(Adv,Marketing e.t.c) will be debited with Posting key 40 by 40 %

Outgoing bank will by credited with Posting key 50 in full

4-b Reimbursement received for 60 % of total amount F-02 Incoming Bank Account will be debited with Posting key 40

Vendor will be credited with Spcl GL indicator N with posting key 33

[Former Member]

Hi,

It is the case like Customer is also a Vendor..

First create vendor master data by assiging Vendor Recon.. next create customer record with similar data and assign Recon... and also assign in Control data tab we have account control... there you must tag Vendor account number also update customer account number in the vendor master data..

We can do transactions normal way.. at any time we can see both transactinons in FBL5N OR FBL1N.

Thanks,

Padmaja

[atif_farooq]

Dear:

This does not solve my problem. I want complete cycle regarding payments and relevant GLs to be opened for this.

[ravichandran_iyer]

The cycle you follow for any other Vendor or Customer is applicable in this case also. There is no special treatment. Reg. the relevant GLs its for your Accounts department to decide how the entries will be made. And for the general scenarios you know how the Accounting entries happen for Sales, Purchase, Payments, Downpayments etc.

Create the Vendor as a Customer also. In those relevant transactions, Samsung will be either treated either as a Vendor(Purchase) or Customer(Sales) as the case may be. At the end of the period, you can do a Vendor Regrouping to clear of the balances against each other to give a net effect.

You can search the wiki here or in google to get the steps to configure Vendor regrouping.

Ravi.