OTC Process in FI

[Former Member]

HI

Can some one please explain OTC Process and accounting entries debit and credit on FI side. I am getting hard  time understanding cash clearing accounts and reconciliations accounts.

Thanks

[Former Member]

Hi Raja,

please refer the below thread for O2C process.

http://scn.sap.com/thread/413495

There are lot of threads you'l find it in SCN.

Regards

Sharmila

[Former Member]

Dear Raja,

OTC process with the integration with SD module in SAP.

1. Inquiry

2. Quatation

3. Sales Order

4. delivery

5. Billing.

The integration with FI starts from delivery process.

DELIVERY A/C entry:

COGS Dr  xxxxxx

Stock  Cr   xxxxxx

here COGS is the cost of goods sold, it is inclusive of COGM( cost of goods manufactured + addition sales cost like packing cost, discounts etc etc.)

Billing A/c entry

Customer Dr   xxxxxx

Sales revenue Cr       xxxxxxx

Incoming payment. ( bank statement upload)

Posting area 1: G/L posting

Bank a/c DR xxxxxx

Interm a/c  Cr xxxxxx

Posting area 2: Sub ledger posting.

Interm a/c Dr xxxxx

Customer Cr xxxxxx

thus the customer open item is cleared in the system.

we have interim account in place for better reconciliation, if system is not able to find the correct customer invoice to clear, or file does not have the correct invoice number due to which system is not able to identify the customer account. or any other algorithm we write to identify the customer account is missing in the file, hence for better recon we initial make our SAP bank  GL and Main bank to be in sync.

Later from the interim account number we will knock off the customer open item manually.

Regards,

M S Lokesh