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Owner BP changes in Contract in mid term - How to impact Accounting for New BP

Former Member
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Hi,

I created a contract and assigned a Owner BP. I completed my posting to FI.  Now after 3 months I have a scenario where my owner BP is changing.

I assigned New Owner BP and created a New Posting term also by restricting the term for Old BP

I also tried creating new condition for new term yet my Financial Accounts are not impacted for reversing the proportionate amount for Old BP and charging to New BP.

Can someone guide me the ideal process.

Thnx

Accepted Solutions (0)

Answers (3)

Answers (3)

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Hi Ankit,


In your case what I had understand that the periodic posting is already done for the entire year with amount $ 12000, I assume for my understanding that this is for the period of 1st Jan’15 to Dec’15.

Initial entry was

Old Customer A/c           Dr.          $12000

Revenue A/c                     Cr.          $12000

In REMS if the customer is change in between of the period which is already posted, it will post differential amount $9000 credited to old customer as credit note and debit the new vendor with the amount $ 9000.


FI posting when the customer changed from 01.04.2015 as new customer

1st Posting

Revenue A/c                     Dr.          $9000

Old Customer A/c           Cr.          $9000

2nd Posting

New Customer A/c        Dr.          $9000

Revenue A/c                     Cr.          $9000

User Step in RECN contract

Open the contract ->Partners Tab-> enter the relationship start and end date for both vendor

From posting Parameter Tab select the posting parameter which is already assigned with the condition


click on 

Click on New

Enter the start date e.g. 01.04.2015

Select the new customer which is valid from 01.04.2015 from partner drop down in period valid from 01.04.2015

Select old customer which is valid till 31.03.2015 by clicking on previous button and select customer

Check the condition tab-> simulation you will find that differential posting is open for posting.

Best Regards

Sudhir

amarendar
Contributor
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Hi Sudhir,

Fantastic explanation, I appreciate your efforts, I wish I could award you some points for this knowledge sharing.

Regards,

Amar

narnei
Contributor
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Dear Ankit,

Understand that you have created a new Posting Term instead using the same posting term. You can use the existing  Posting Term also.

Any how in new Posting pls check the partner assigned in your contract as shown in my below screen shot.I hope you have assigned old partner in new posting also, then only chances to get such issue.Pls check the same.

Seems to be you have posted to FI also initially, until what time you have posted only for the 3 months or for long time.I think your issue is lying here, just check this point.After adding partner if you run the Periodic posting ( from the new date)it will surely flow to new BP only if you assigned correctly.

Also you can use same posting term also for differnt  BP's, Pls try to refer the below link fully which is very similar to your issue. It may helps you.

If still error not resolve pls share the screen shot of the error.


Thanks,

Rao

Former Member
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Hi Subbarao,

I created and assigned New BP to  New posting term.

I posted to FI for long term initially, now I assigned the new posting term with New BP to condition from new date yet the posting is taking place for old BP only.

Regards,

Ankit

amarendar
Contributor
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Hi Ankit,

Your query is not clear to me.

Do you want FI postings to happen retrospectively for the new BP?

Can you elaborate it with an example? Like what has happened and what you are expecting.

Regards,

Amar

Former Member
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Hi Amare,

Example:

I created a contract for 1 year and posted to Old BP for entire year for amount $ 120000

Now after 3 months my tenant get changed but business don't want to cancel the contract and want following Accounting entry:

Initial Entry:

OLD Tenant Dr 120000

Revenue Cr 120000

New Entry After Tenant change:

OLD Tenant Cr 90000

New Tenant Dr 90000

Thanks in advance!

amarendar
Contributor
0 Kudos

Hi Ankit,

You should not try to achieve it.

Best practice suggests to reverse the periodic posting (RERAPPRV) for 9 months. Change the BP from 4th period and then again do periodic posting again with the new BP for 9 months.

Nevertheless, if you wish to do it, use one time postings using posting activity to make your required entry with respect to the contract.

Regards,
Amar

narnei
Contributor
0 Kudos

Hi Ankit,

sorry for delay in reply, after doing date chnages for BP what ever postings you will do it will take new BP only.

As suggested by Amar you should reverse it first and then re post it, then system will consider the new BP based on the time lines given in contract.

For already posted conditions how it will get impacted.... Pls try this.

Thanks,

Rao