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Former Member

Treatment of Bank Overdraft


In trial balance there is Bank Overdraft A/c in which there is list of banks from which bank overdrafts are taken. I want to know whether I should create a separate account group for Bank Overdrafts or it can be trated in some other way. If there is other way, pls let me know how it can be done?


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1 Answer

  • Jul 15, 2011 at 07:24 AM


    Bank O/D being your liability should be mapped in FSV under current liabilities node. Make sure its number range exist in between GL for current liability account group in OBD4. However if it does not then you will have to create new GL that falls under the current liability account group's number range.


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    • Former Member Former Member

      You can continue with one account; you do not need a separate account for overdraft. In financial statement version item settings (OB58), you have an option to show an item under liabilities if it is an overdraft and in assets if the bank accounts has a debit balance. Please see below.

      You can link two items within the financial statement version as contra

      items. This means that the final assignment of the account balances is

      wholly dependent on whether the total balance of all the accounts making

      up that item is positive or negative.

      To define a debit/credit shift between two items, proceed as follows:

      1. Ensure either that both items have no accounts assigned to them or

      that both items have the same accounts assigned to them, in each

      case all either on the credit side or on the debit side.

      2. Select one of the items.

      3. Place the cursor on the other item.

      4. Select the menu path Edit -> Debit/credit shift -> Define

      5. In the dialog box that appears, specify which of the two items is

      the credit item and which is the debit item.

      You can delete a debit/credit shift that has been defined by choosing

      Edit -> Debit/credit shift -> Delete