How best to handle Outgoing Checks during DTW initial data import?

[Former Member]

Hi Experts,

This is the situation:

Old client system does this - anytime they post an outgoing check it reduces the Vendor owed balance.

For example Old Client system has Vendor1 owing 150 dollars (Vendor A/P balance) with two outstanding A/P invoices for 100 dollars and 50 dollars. On their old system, when they pay off one of the invoices say for 50 dollars, the A/P owed balance reduces to 100 dollars.

I would like to import above data in to SAP B1 now.

I shall import open invoice 1 for 100 dollars. The BP's (Vendor1) A/P balance will get bumped to owing 100 dollars. Which is OK.

I now want to import the ougoing check. How do i do that? If I import outgoing check against the BP, it will further reduce the Vendor1 owing balance to 100-50=50 dollars.

Note: I noticed there is a flag (in Banking->outgoing payments->Checks for payment - OCHO, creadteJDT). I suppose using the above flag will not post the journal entries that credits the bank and debits the vendor again.

Also, I suppose I use the templates OCHO and CHO1 for outgoing check payments. Does this create link BP and show the check in outgoing checks for payment or only external reconciliation remains to be done?

Please advise. Thanks for your help.

[Former Member · Accepted solution]

Hi,

I am afraid I lost you somewhere. If A/P owed balance reduces to 100 dollars. It already taken out the outgoing payment for that 50 dollars. Why do you need to import it?

Thanks,

Gordon

[Former Member · Accepted solution]

Hi Gordon,

You are right, A/P got reduced on old client system already. However, they do want to keep record of outgoing checks, because we never know when the vendor of our client would actually deposit the check, for any exchange rate differences, or for that matter, should the vendor lose the check and our client needs to reissue one etc. For a number of reasons, they do want to have a record of checks issued that are not reconciled on their old system.

So my question is, how could we import using DTW outgoing but not reconciled checks and not affect the A/P balance but yet have it associated with the Vendor account.

Thank you.

[Former Member · Accepted solution]

I don't think those cases are too many. Better keep those outside of the import. The chance to get bounced check shouldn't be high, right?

Customer's concerns are understandable. However, any historical transaction before cutoff date would be outside of the system. That will give you the greatest consistency.

[Former Member]

Hi Syed Aleem......

If I'm not wrong You can anyway import the outgoing cheque against the Invoice which you have imported against reference.

All you need to do is you have to set the base key of invoice into Outgoing Template.

Regards,

Rahul

[Former Member]

Hi Rahul,

If the invoice is fully paid, our client does not want to import closed out invoices. However, that vendor and fully paid invoice may have a check sent out which they want to import and associate with the BP (Vendor).

They want to import only unpaid and open invoices as summary invoice to get the A/P payable up to date for that vendor.

Yes, this is also possible, the invoice may be partially paid out in which case, only the open amount on the invoice and the non-reconciled check needs to be imported.

Are the above two situation a normal practice and can they be done?

Thank you.

Edited by: Syed Aleem on Jul 21, 2011 11:29 AM

Edited by: Syed Aleem on Jul 21, 2011 11:30 AM

[Former Member]

Hi Rahul, what are your final thoughts after I entered additional information. Look forward to your response. Thanks.