Zero-Balance Clearing Account

[Former Member]

Dear all,

I don't understand Zero-Balance Clearing Account in accounting processs.

Please give a detail example and how to use transaction

Thanks so much

Minhtb

[former_member1243435]

Lets say you have transaction "Transferring money from one bank to other bank"

PC - Profit Center

Seg - Segment

PEA - Period End Activities

Entry View

Dr BOA Bank $100 PC1 Seg1

Cr Citi Bank $100 PC2 Seg2

Note: Both Accounts are Balance Sheet Accounts. we have a Debit value recorded in BOA (PC1 and Seg1). we have a Credit Value recorded in Citi (PC2 and Seg 2). we need to revere the (Credit to PC1, Seg1) and Debit to (PC2, Seg2). without this we have to do reconciliation at the end of year which are avoided now with new GL and Segment concept. For us to reverse we need another account for which we use Zero Balance Clearing Account. This is a Balance Sheet Account

Now in GL View two Line Items are created

Dr BOA Bank $100 PC1 Seg1

Cr Citi Bank $100 PC2 Seg2

Cr Clearing Account $100 PC1 Seg1

Dr Clearing Account $100 PC2 Seg2

With the Concept of New GL, below are the affects on Period End Activities (PEA)

Eliminated PEA:

a) Maintenance and use of Reconciliation Ledger

b) BS Adjustment

c) PL Adjustment

d) Maintenance & use of Special Purpose Ledger

Slightly Changed PEA:

a) Balance Carryforward (In FI)

b) Reclassification (For AR and AP)

c) Flat Rate Individual Value Adjustment

Not Eliminated PEA:

a) Foreign Currency Valuation (of Vendor Line Items)

b) Depreciation Run (in FI-AA)

[Former Member]

hello

Applicable also in business area situations.

In the standard system, you can balance each business area to zero by means of adjustment postings.

You can use the balance sheet adjustment to do this. When you post a document, the system checks the business area balance and if this is not zero it marks this document for the balance sheet adjustment. Program SAPF180A reads the marked documents, calculates the adjustment postings required, and updates these in its own database tables. A second program, SAPF180, reads the adjustment posting tables and on this basis posts the accounting documents required.

The adjustment postings are posted to a clearing account. This account fulfills the function of a receivable or payable from a business area against all other business areas.

The balance sheet adjustment generates summarized transfer postings to the clearing account.

You can run a balance sheet adjustment as often as you require.

You cannot however run the balance sheet adjustment without first activating the business area balance sheets for the company code in question.

You can display the calculated adjustment postings for each individual document from the document display.

Reg

assign points if useful

[Former Member]

Dear all,

I am sorry, I haven't understood yet.

Please show me how to configure guide and give a example on system to check function of Zero-Balance Clearing Account

step by step

Thanks so much

Minhtb

[sivaprasad_r]

Hi,

In New GL, Financial statement can be created for any dimension like segment.

For this purpose, document splitting is active, and each document need to be balanced in the dimension for which , u want to prepare financial statement.

in case, the system cannot balance (i.e Debit is not equal to Credit ) the dimension ( say segment ) in the document after splitting, then it will use the Zero balance clearing account for the segment.

Hope i am clear.

Thanks

Siva

[andreas_mann3]

a clearing account is necessary for clearing difference e.g. from invoices, payments, etc...

the ideal status is that ther're no diffferences - so that ther're no items on your clearing account or all items are cleared and all differences are erased from your account; i.e. zero-balance

hope that helps

Andreas