G/L accounts (VKOA).

[Former Member]

Hi...Gurus

In VKOA(Revenue Account Determination) we find two G/L accounts columns. What is the purpose of the two G/L accounts columns.?

Regards

Jyothi.

[Former Member]

ANS

[Lakshmipathi]

Please dont add unwanted comments like this for very old thread which will bring on top of the forum unnecessarily. Just click "Answered" without adding any comments.

thanks

G. Lakshmipathi

[Former Member]

Hi,

The first GL account is for Price accounting Keys like ERS, ERL,MWS and are cleared once customer pays the amount.

and the

Second GL account is for the REBATE ACCRUALS or Deferred revenues in case of REVENUE RECOGNITION.. These are all temporary acounts and cleared at a later stage ( not immediately)

Hope it is clear,

thanks,

santosh

[reazuddin_md]

Adding to above info,

I would like to explain with a scenario,

Eg: Company transports the goods to the customer locatoin of Free of charge, but it has to settle this transportation/Freight cost to the Service Provided(Forwarding agent).

So company wants to capture freight cost involved in each invoice & it should not considered in Customer Invoice.

In this case,

we create Freight Condition type & Mark it as "Accrual" in condition type detail, maintain the same in Pricing procedure with relevant account key & Accrual key.

as per Accounting norms,

Cr & Dr entries should be balanced. To make accounts balanced. we maintain multiple G/L accounts in VKOA , one is actual G/L account & the other is Provisional account. ( its possible, both columns may have same G/L account)

Hope it clears your doubt.

[jignesh_mehta3]

Dear Jyoti,

Two GL Accounts in VKOA:

1. The First GL Acount is normal GL for posting the amount in GL account. E.G. GL A/c- Domestic Revenue for normal Sales.

2. Is the Provisional Account. This is used in case of Accurals. E.G. in Rebates you need to accumulate the Rebate amount in some GL Account other than the normal Gl Account.

The actual Rebate Amount is posted to normal GL Account only when target is achieved & Rebate amount is cleared & posted.

Thus till the time the target is not reached Rebate amount is accumulated in the Provisional GL Account.

Hope this helps.. .

Thanks,

jignesh Mehta