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bank account - asset or liability

Former Member
0 Kudos

Hi Experts,

I have to create a CC Bank ledger account. This account is dynamic it may dr or cr values at any point of time depending on the cheques issues/deposited.

My question is <u>is this Assest account or Liability account</u> because this account balance changes rapidly from time to time.

Pl. help.

Vijay

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi

Bank accounts are normally created as an asset account only.

The net balance of current assets(this is the group in which the bank accounts form part in a finincial statement) will be arrived at.

If it is an overdraft or a loan account you may create it as an liability account

Hari

Former Member
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I have created bank account as asset. But later the client opted for CC facility in same account, now it became a liability. How to define this and what is the easy way to sort out this issue.

dominic_holdstock
Active Contributor
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Hi,

In the Financial Statement version(OB58) you can specify where the account will be displayed based on whether it has a debit or credit balance.

Kind regards

Answers (5)

Answers (5)

Former Member
0 Kudos

Hi,

In the Financial Statement version(OB58) you can specify where the account will be displayed based on whether it has a debit or credit balance.....here u can select debit creit shift......

Former Member
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hai

Bank A/c Always comes under Current Assets under Balance Sheet Account only.

Subbu

Former Member
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????????????

Former Member
0 Kudos

Hi

You need to create the Bank account as Balance Sheet account and attach it to the appropriate node in your financial Statement version.

Depending on the value in the account, it will show either positive or negative sign.

Thanks

AK

Former Member
0 Kudos

Dear Vijay,

you need not worry about changing the balances. at the time of creation of gl accounts, sap asks for P&L or Balance sheet account. you mention this account as balance sheet account.

This will resolve the issue.

Thanks n regards,

Ganesh JK

Former Member
0 Kudos

HI Vijay,

The main Bank Account always Comes under Asset Account only.

Rams.N

Former Member
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my question is if my bank account balances changes rapidly as the transactions occurs and it has a CC facility it may be sometimes liability.

How to define this, under asset or liability.