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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 .

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3 Answers

  • Dec 08, 2016 at 03:03 PM

    Hi,

    Unless, I'm confused by your requirement, it won't be possible without posting a 'dummy' financial document, which would reduce the consumption of budget. Of course, such an action would not be achievable without modification of standard process. Maybe, if you put some examples with figures and G/L accounts, this assessment would change.

    Regards,

    Eli

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  • Dec 11, 2016 at 10:18 AM

    Thank you Mr. Eli Klovski

    I have explained my business scenario in detail : with fund available before creating PR/PO and

    fund consumed /available for commitment item and then posting service entry and invoice with below Dr/CR.

  • Credit Vendor
  • Debit GR/IR account
  • Debit prepaid expenses
  • Credit consulting general ledger account
  • 1) Fund available before creating the PR Transaction code FMAVCR01 - Display Annual Data of Control Obj.

    2) PR created /PO creadet Fund got blocked Transaction code FMAVCR01 - Display Annual Data of Control Obj.

    Document number created by the system on creating the PR/PO Transaction code FMAVCR01 - Display Annual Data of Control Obj.

    3) Service entry sheet posted form transaction code ML81N for the purchase order

    Display after posting service entry sheet Transaction code FMAVCR01 - Display Annual Data of Control Obj.

    4) Posting of Invoice Transaction code MIRO

    • Credit Vendor
    • Debit GR/IR account
    • Debit prepaid expenses
    • Credit consulting general ledger account

    5) Report Executed after posing the Invoice

    Transaction code FMAVCR01 - Display Annual Data of Control Obj.Where u can see the available amount is showing 98000/= instead of 90000/= Real issue

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  • Apr 11, 2017 at 11:26 AM
    Issue resolved by creating the derivation rule
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