Hello Expert, ..
Im very basic on SAP FI and I need some explanation about Clearing activities at Period-End (month & Year).
My questions :
A) Do we have to Clear every GL/Vendor/Customer Account at every Month/Year-End ?
If so, Why? What is the consequence if we Dont Clear them ?
B) I have this situations :
1) After I execute F.19 at Period-End, How do i CLEAR some GR/IR account that Have Not being Invoiced yet?
2) on December 2010, I have Post a Pre-Paid Insurance Exp like this:
Pre-Paid Insurance $1.500
Cash -$1.500
*) This Pre-Paid is used to pay Actual Insurance Exp for Dec 2010, Jan 2011, Feb 2011 ( $500 each Month)
So, I use Reccuring Entry to allocate these Exp.
(31/Dec/2010) --> F.14
Insurance Exp $500
Pre-Paid Insurance -$500
*) How can i clear this Pre-Paid Insurance at the End of Dec 2010 ? Since the Balance on 31/Dec/2010 will be at Debet $1.000 ($1.500 - $500) Not Zero Balance.
Thanks for your kindly helps
Regards
-Luna-