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Dec 05, 2016 at 06:13 AM

Excess fund consumption in case of prepaid expenses


Dear Experts Kinldy advice

Business Scenario : Depending on the nature of expenses, after the Service entry sheet /Goods Receipt has been posted Transaction code ML81N/ MIGO, the expenditure booked shall be moved to prepaid expenses at the time of posting invoice Transaction code MIRO . This will result in funds getting added back to the commitment items to the extent of expenses moved to prepaid expenses. In reality, there should be no addition of fund in these cases. This will allow the users to create PRs/LPOs, and the fund added back shall be utilized for these LPOs, that is not supposed to happen. Furthermore, it will stop finance at the time of posting expenses from prepaid expenses through recurring entries as the user department has consumed the fund that was added back in creating PR/PO .