Vendor Offset account

[Former Member]

Hello Guru

I am working on AP open item conversion and I need to setup a offset account to clear all items and make balance zero at the end of the day. So now can you please help me on this OFFSET account like how to setup this and do clearing.

[Former Member · Accepted solution]

Hi,

Really did not get your question.

Normally Vendor Invoices are cleared with payment or Downpayment.

If that is your question then you can choose the invoice at the time of payment it will automatically clear.

IF not then you can use Tcode F-44 for clearing the Vendor accounts.

[Former Member · Accepted solution]

Thanks lolu jo

Your answer is helpful. What I am doing here I am doing conversion for AP open item from SAP 5 to SAP 6 ,so for this I planned to create create Offsetting accounts(Vendor,customer,GL) + one main offsetting account. And at the end of the day, the total balances within these accounts must be ZERO. So to make ZERO of these accounts I am planning to transfer the balance to MAIN offsetting account and will run F-44 and will clear this.

Question:1) How we do setup for Offset account

2) what will the accounting entries.

[former_member182098 · Accepted solution]

If it is a technical upgrade, why you need offsetting account? You are not bringing legacy data, am I right?

[Former Member · Accepted solution]

If i understand correct, you are trying to post all the open items against one off-setting account for each vendor or customer or gl. If so, are you thinking of doing to manually or some kind of batch transaction. If manual, all you would have to do after selecting all the open items in f-44, click on simulate and key in posting key and gl-account and then save. If you are doing a batch, then you would have to include the details for this offsetting account in the input file.

Hope this helps.

Shail

[Former Member · Accepted solution]

Hi,

If you are trying to upload the Initial balance into the system.

Then create a legacy balance GL.

Then for Open Items pass the entry as

Legacy balance A/c Dr

To Vendor A/c Cr.

But this activity you will be doing in ECC 6 not ECC 5.

If it is a upgrade sorry I don't know what we have to do.

[Former Member · Accepted solution]

Thank you Shaliendra and Atif

Let me explain in more detail

We have 2 system SAP 5 and SAP6, Now I have to convert all my AP open item from SAP 5 to SAP 6

Presently postings are :

SAP 5

Cr Vendor

Dr Exp

when it is coming to SAP 6 then Postings are

Cr Some X accounts (GL account)

Dr Expense accounts

Now another invoice came in posting are

SAP 5

Cr Vendor

Dr Exp

SAP 6

Cr X(Same GL account)

Dr Exp

Now Going forward I have to do SAP 6 Credit to vendor not to Same X acount

So I am thinking:

Cr Vendor

Dr X

or

Cr Vendor

Dr Conversion account(AP)

Let me know your thoughts ? which one is best or any other idea.

[atif_farooq · Accepted solution]

Hi:

In this circumstances the idea of using clearing account like the last option you used is best. At the end of the day this clearing will have a zero balance when you have interchanged data between two..

Regards

[Former Member · Accepted solution]

I agree with Atif. You are better off posting to a clearing account to keep it plain and simple.

[Former Member · Accepted solution]

Thanks Atif :

Can you give me Pro and Con for using AP conversion account compare to X account ?

[atif_farooq · Accepted solution]

Hi,

Clearing accounts are build for these sort of transaction and at the end of day they have zero balance..Simple logic to use clearing account for this transaction is that its a transfer of vendor open items and they should be done via clearing accounts. SAP uses clearing accounts to serve as intermediary between offsetting transaction and more importantly all clearing account have zero balance. GL Account like expenses are use of Gl posting not for clearing. Hope it will help you.

Regards

Edited by: Atif Farooq on Oct 26, 2011 10:26 PM

[atif_farooq]

Hi:

I guess you are trying to transfer the open items of a vendor to some GL account to remain accrued there for sometime and transfer them back..If this is so then open use accrued expenses GL and transfer all entries line item wise using F-30..transfer posting with clearing ...choose open item....give account type k and vendor...process ooen items..here you will to select line items one by one to transfer the balance to accrued expenses GL..Having selected line items go to overview button, give posting key 50 and gl and do the transfer

Vendor Dr

Accrued expenses Cr

Regards