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Bank charges to be borne by payer and receiver equally - A/cing entry F110

Hello Gurus,

As per our client requirement bank charges need to be borne equally by the payer and the receiver, we want to know how the accounting entry gets reflected in SAP while doing a "Automatic Payment Program thru F110".

Assume that Vendor payment is 10050 and 100 are bank charges, which need to be borne by the payer and the receiver on agreed proportions.(Assumed at 50% in this example)

Entry for bank charges amount to be bifurcated in SAP as below.

Vendor a/cu2026u2026u2026u2026u2026u2026u2026u2026u2026u2026u2026u2026..10000u2026u2026u2026.Dru2026u2026..(Outgoing Payment)

Bank Charges a/c (With Vendor)u2026u2026u2026u202650u2026u2026u2026....Dru2026u2026 (Account Determination)

Bank Commission / Expense a/c (Self)u2026.50u2026u2026u2026u2026Dru2026u2026..(Account Determination)

Bank GL a/cu2026u2026u2026u2026u2026u2026u2026u2026u2026u2026u2026u2026.10100u2026u2026u2026Cru2026u2026..(Account Determination)

My concern is how the actual vendor invoice of 10050 will be cleared when 10000 is payed to the vendor. Appreciate your suggestions.

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3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jul 05, 2011 at 10:45 AM

    Hi,

    Assuming that if we know the bank charges immediately after invoice, but we want a combined entry of payment as well as bank charges at F110 payment.

    My concern is how the particular invoice of the vendor will be cleared.

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 05, 2011 at 10:25 AM

    Hi,

    It can be handled in the following way:

    1. Invoice will be as usual.

    2. After the Invoice, if the bank charges are known pass a journal entry immediately:

    Debit: Vendor Account -- 50

    Debit: Bank Charges -- 50

    Credit: Bank Charges Payable Account -- 100

    3. At the time of APP Vendor will be paid with 10000 (10050 minus 50)

    4. At the time of EBS, create a new Account Symbol such that Bank Charges Payable Account is debited instead of Bank Charges Account.

    Hope this will meet your requirement.

    Regards,

    Kiron Kumar T.

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 21, 2011 at 08:12 AM

    Hi,

    As per my understanding accounting entry should be:

    Vendor a/cu2026u2026u2026u2026u2026u2026u2026u2026u2026u2026u2026u2026..10050u2026u2026u2026.Dru2026u2026..(Outgoing Payment)

    Bank Charges a/c (With Vendor)u2026u2026u2026u2026100u2026u2026u2026....Dru2026u2026 (Account Determination)

    Bank Commission / Expense a/c (Self)u2026.50u2026u2026u2026u2026cru2026u2026..(Account Determination)

    Bank GL a/cu2026u2026u2026u2026u2026u2026u2026u2026u2026u2026u2026u2026.10100u2026u2026u2026Cru2026u2026..(Account Determination)

    From this it is clear that vendor is liable pay 50 rupeee to us.

    Please check and Confirm.

    Note: so through F110 we will charge 100 as bank charge and manually we have to pass a debit memo to respective vendors.

    Thanks and Regards

    Binoj M D

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