Allocation Account

Hi, can someone please explain the functioning of the Allocation Account in your Item Group setup, Accounting tab.

Hello,
This clearing account is used as an offsetting account to
the Stock account in Goods Receipt POs and A/P Credit Memos. The balance of this G/L account reflects the total amount of opens Goods Receipt POs and Goods Returns.
Allocation account can be defined under Define Item Groups, Item Level and Warehouses, also can be defined in Setup> GL Account Determination> Stock tab.
Which account to be used depends on which kind "Set GL account by" seleted in Item Master Data> Inventory tab.
Hope this helps.
Regards,
Maggie An
SAP Business One Forum Team

Similar Messages

Confused about the Landed Costs Allocation Account

Hi, Im uncertain about which account to use in the landed costs module.
What we are doing right now is this:
We add our raw materials throught the Goods Receipt Module Debiting our inventory and Crediting the allocation account which its in the liability category.
Next we add our transportation and import costs through the landed costs module. Here we debit the same inventory account and Im not sure as to which acount to credit. Should I use the same allocation account?
Can some please share your experience?
Thank you.

Hi Jose,
You should use a different allocation account. When you pay the bills to the customes agents and freight companies for the landed costs, they can be coded to this allocation account and can be reconciled accordingly.
The allocation account used for the goods receipts is cleared when processing AP Invoices to the suppliers, and should also be reconciled for differences
Hope this helps

Customs Allocation Account and Customs Expense Account

Hi All,
Can any one tell me what is the use of Customs allocation Account and Customs Expense Account.
When and where these accounts will be used.
If possible provide with examples of journal entry.
Regards
Shashi

Hi,
Custom allocation iaccount are used with the landed cost.
It's defined in Setup > Inventory > Custom Group. You will have to define both the Custom allocation account and the Custom Expense account. On the Item Master Data, the custom group is found on the Purchasing tab.
In Purchasing/AP > Landed cost, if the field Custom Affects Inventory is checked then your custom allocation account will be credited and the inventory account will be debited (inventory value goes up).
If the field Custom Affects Inventory is unchecked, the custom allocation account will still be credited but the custom expense account will be debited instead.
Hope this help
Regards

Balance of Allocation account

Hi Experts,
Im closing my last financial year, but I face to a problem: the allocation account has different balance, then the open goods returns and there was no open good receipt PO (I have checked backwards in database) . Where does this difference come from?
Please help , its urgent.
Thanks,Eszter
Edited by: Philip Eller on Jun 18, 2008 9:33 AM
Edited by: Philip Eller on Jul 2, 2008 12:37 PM*

Dear Eszter,
If you are using version 2005A, the AP Reserve Invoice also uses the Allocation Account. Hence:
Dr. Allocation Account
Cr. BP Accounts Payable
Upon Goods Receipt:
Dr. Stock
Cr. Allocation Account
In 2007A, this has been changed. AP Reserve Invoice transactions are now posting to Stock in Transit account.
I hope the above helps.
Regards,
Lorna Real

How to balance allocation account

Hi,
Normally, the allocation account should balance with all opened GRPOs and returns.
Actually, in order to verify if the Allocation Account balance is
corresponding to all opened GRPOs and returns, we create a user query.
This query will list the row total (without tax) for all the opened
rows of GRPOs and returns. This seems to work fine.
But we noticed that in OINM table, there is a field called 'Allocation' that could help us to know the theoritical value in the allocation account (by doing a SUM of this field).
This field is affected in negative when a GRPO is created, which is fine. Then, the field is affected in positive when an A/P invoice is created, which is also fine since the allocation account is reset when an invoice is created based on a GRPO.
The only thing that doesn't work is when we close a GRPO without creating an invoice based on it (or a return without creating a credit memo based on it). Normally the allocation account is reset when doing this (with the journal entry). But in OINM, it is not... we should not see an amount anymore in the 'Allocation' field for the GRPO (or the Return) that is now closed .
Same thing fort he 'OINM.OpenAlloc' field... this field is not affected when closing a GRPO or a return and it should be... no ?
What is the purpose of those fields ?
And since we can't trust the contents of those fields, one of our customer is asking us what is the best way to ensure that the Allocation Account balance is equal to what it should be ?
The purpose of my question is to have a tool that will allow our customers to validate that the allocation account is okay... !! We need a tool that will show if the allocation account balance is what it should be... you understand my point ? There is no report for the allocation account...
We have a tool to verify the inventory G/L accounts... It's called "the inventory audit report". With this tool, we can compare the Inventory G/L account balance with the real inventory transactions.
So, we need a tool that will indicate to the customer that the receivings not invoiced is balancing with the allocation G/L account balance. Are you following me ?
Regards,
Luce

Hi Suda and Jeyakanthan,
Yes I know all that.
So, I should use this query to verify if the ACTUAL balance fits with what it should be ? THere is no other way of doing that ?
SELECT 'Receipt', OPDN.Canceled, OPDN.TransID, OPDN.DocStatus, OPDN.DocNum, OPDN.DocDate, PDN1.Rate, PDN1.ItemCode, PDN1.Quantity, PDN1.OpenQty AS OpencreQty, PDN1.Price,
( PDN1.Price * PDN1.opencreQty * (case when (PDN1.Rate = 0 OR PDN1.Rate IS NULL) then 1 else PDN1.Rate end) )AS TotalPrice
FROM OPDN OPDN
INNER JOIN PDN1 PDN1 ON OPDN.DocEntry = PDN1.DocEntry
INNER JOIN OITM OITM ON PDN1.ItemCode = OITM.ItemCode AND OITM.InvntItem = 'Y' and PDN1.LineStatus = 'O'
UNION ALL
SELECT 'Return', ORPD.Canceled, ORPD.TransID, ORPD.DocStatus, ORPD.DocNum, ORPD.DocDate, RPD1.Rate , rpd1.ItemCode, rpd1.Quantity, rpd1.OpencreQty AS OpenQty, RPD1.Price,
( rpd1.Price * rpd1.opencreQty (Case when (RPD1.rate = 0 OR RPD1.rate IS NULL) then 1 else rpd1.Rate end) ) -1 AS TotalPrice
FROM ORPD ORPD
INNER JOIN RPD1 RPD1 ON Orpd.DocEntry = RPD1.DocEntry
INNER JOIN OITM OITM ON RPD1.ItemCode = OITM.ItemCode AND OITM.InvntItem = 'Y' and RPD1.LineStatus = 'O'
Thanks,
Luce

Adding A Goods Receipt PO Docement it shows G/L Account is missing

In a Goods Receipt PO Document there are 4 items we can't able to add the document it shows some error.
The exact error was
07/07/2008 15:56:54: G/L account is missing [Goods Receipt PO - Rows - Warehouse Code][line: 1]

Hi jafesas
try this in test DB
if your Set G/L account by is warehouse then select all account code in warehouse tab then try to add , your problem will be solve
major account code as follows:
1.Inventory Account
Allocation Account
2.In taxcode check A/P Tax account

G/L Account Determination Document for SBO 2007

I would like to find a document (word, excel or pdf) that explains the G/L Account Determination and its accounts. In which documents inside SBO are those account used? I see more accounts used in SBO 2007 and use trial and error to see these but preferred a document. I have seen the empowerment session about account determination but do not explain each of the accounts. Any help ?

Sorry for attaching wrong thread .
Please refer to the following information
g/l Account Determination ---> purchase ---> Expense Account
Define an expense account to be used as the default when a transaction of domestic purchasing is posted, for example, an A/P invoice. The system also selects this account as a default when you create new warehouses, item groups, and item master data records.
The expense account is applicable only when you use non-inventory items.
g/l Account Determination ---> purchase ---> Purchase Credit Account
Define an expense account to be used as default when a credit transaction for purchasing is created, for example, an A/P credit memo.
This account defaults for new warehouses, item groups and item master data records creation.
The purchase credit account can be the same as the Expense Account, in case you do not wish to record credits to a separate account.
Setup g/l Account Determination ---> inventory ---> Expense Clearing Account
Define an offsetting G/L account to clear journal entries created by A/P invoices and goods receipt POs. This G/L account is used in journal entries when the Allocation account is also involved.
Setup g/l Account Determination ---> inventory ---> Goods clearing Account
When you close goods receipt POs or goods returns, this account is used as an offsetting account to the Allocation account. In this case, the system does not register an inventory transaction; however, it creates a journal entry involving this G/L account.
Clearing account: An account to which postings are recorded temporarily because of a time gap between accounting transactions, organizational task distribution, or accounting transactions requiring clarifications.
No matter what kinds of clearing accounts, they will be temparary accounts per se.
Link for Archive Sessions:
http://service.sap.com/~sapidb/011000358700000131752007E/ExpertSessions.htm
And more information ,you can take a look at help file by hitting F1key
Hope this helps.
Bishal

Error: Transaction currency differ from Account or BP currency

Hi all
While adding Goods Receipt PO I am getting this error "Transaction currency differs from account or BP currency-Goods Receipt PO"
For your information I am using Foreign Vendor dealing in UD Dollar and following setting in Basic Settings:
1)Local currency = Indian Rupee
2)System Currency= US Dollar
3)Default Account Currency = All Currencies
PLz solve the issue.
Kush

Hi Khushwant
Check the related G/L accounts are set to multi currency. In this case Trading Stock and Allocation Account. If you are using Freight charges (Additional Expenses) then check their G/L accounts too.
Kind regards
Peter Juby

Item Group Account Setting

Hi To All,
I am creating a Item Group in 2007B , where in Accounting Tab i have to Set different Account named as
Expense Account
Revenue Account
Inventory Account
Cost of Goods Sold Account
Allocation Account
Variance Account
Price Difference Account
Negative Inventory Adjustment
Inventory Offset - Decrease Account
Inventory Offset - Increase Account
Sales Returns Account
Purchase Account
Purchase Return Account
Purchase Offset Account
Exchange Rate Differences Account
Goods Clearing Account
G/L Decrease Account
G/L Increase Account
WIP Inventory Account
WIP Inventory Variance Account
Expense Clearing Account
Expense Offset Account
Sales Credit Account
Purchase Credit Account
Incoming CENVAT Account (WH)
Outgoing CENVAT Account (WH)
in Journal voucher only Allocation account and account of tax will be affected in A/P Sales or Purchase invoice.
can any one explain each and every account of item group?
I want to know that role of every account in sales and purchase and also want to know that where it will give any empact on balance sheet or profit loss or on other report?
Thanks in Advance

Hi Sandeep,
you will find explanations with examples for most of these accounts & where the postings come from in the document 'Continuous Stock in SAP Business One 2004'. There have been additions in the GL account determination since & you will find info about those in either of these documents:
How to Determine G/L Accounts 2005 SP01 - EU
How to Determine G/L Accounts 2005 SP01 - US
The 2007 on-line-help will also be useful.
Click [here|https://service.sap.com/smb/sbo/documentation] to get to the documentation resource centre.
You will also find archived Expert Empowerment Sessions useful. Click [here|https://psd.sap-ag.de/PEC/calendar/] for those. Tick the box 'Archived Sessions Only' & enter the search criteria.
All the best,
Kerstin

General Account Determination

1.Whre do we account purchase offset account. whether it is a Expense A/c or Incomes Account
2. What account we can assign for Sales Credit Account And Purchase Credit Account . ?
3. How we can differentiate Expense and Incomes of a busines for each department wise by using dimension?
Please Help me to clear this doubts.
Thanks

Pradeep,
1.Whre do we account purchase offset account. whether it is a Expense A/c or Incomes Account
 By Purchase Offset account are you referring to the Allocation Account? (Allocation account is used when you receive Goods through Goods Receipt PO and you owe money to the vendor for this).
If so then you need to select an account for the Liability drawer as it is a current liability.

2. What account we can assign for Sales Credit Account And Purchase Credit Account . ?

The Sales Credit Account is affected when you create a Credit Memo and similarly the Purchase Credit Account when you create a AP Credit Memo. The G/L Account for the Sales Credit Account typically is the Sales Revenue Account since it is reversal of Sales Revenue and likewise on the purchase side

3. How we can differentiate Expense and Incomes of a busines for each department wise by using dimension?

I believe by "dimension" you are referring to GL segmentation. If so, you are correct the department wise categorization of Exps and Inc can be done through GL Segmenetation.
Example:
Travel Expense (Sales) 620000-10
Travel Expense (Management) 620000-20
As you see above, 10 and 20 are segments pertaining to each department

Expense Account for Item Group

Dear All,
I have a question for the G/L account of Item Group.
If we purchase something from our vendor, the first account 'Expense Account' should be increase. Is that correct?
But our customer would like to have a Asset Account increase because that item group is for Fixed Asset (something like the computer they purchase for their employee, etc).
What account should I choose for this Item Group to let the Asset Account increase when I purchase something?
Thanks a lot.
Regards,
yuka

Hi
I read all the post
I may be wrong but
I think just change the Inventory account for that item group if the G/L Accounts are set by item group
If it is by warehouse change Inventory account there ,or if by item level change there
I donu2019t know where expense account comes
I will explain in full
For GRPO the JE is
Inventory account Dr.    100
To Allocation Account Cr.             100
For A/P IN it is
Allocation Account Dr.    100
To Vendor Account                        100
So it simple if you change inventory account (instead of raw material ) to any Asset Account
The asset account will be updated with every purchase of that item
Please let me know if I am right or wrong so that I can also upgrade my knowledge
Thanks
Avtar Singh

Problem Receivable account determination, cash sales (EVV)

Hello all,
I need work with cash sales, billing type BV, then in the BV invoice type I have the EVV in the Account key for cash allocation.
I create correctly the G/L account determination, introducing one account in the entry for the key EVV.
And another for the receivables account, for example key ERL 700000
When I save the invoice, the account determination procedure works correctly, it found the account 700000, but the FI doc is not generated....
If i delete the EVV from the BV, the determination work correctly (accoutn 700000) but the cash account is not determined because I delete the EVV.
¿why is the reason?¿why it doesn't work when the BV have the EVV? I miss some customizing?¿depend of the definition of the FI accounts?
Best regards,
Javier

Hi Javier,
To begin with why you need to maintain both EVV and ERL in account determination?
The purpose of the account key in Billing document control is :-
Account key for cash allocation
account key that causes the system to post to a G/L account rather than to a receivables account. You can enter G/L accounts for the key entered in account assignment. (Account determination can be found in Basic Functions).
Use
You can use this to allow cash transactions to be carried out directly for the customer rather than receivables being created.
So this means that once you maintain the Account key for cash allocation,Direct entry will hit the relavant GL account rather than creating a receivable entry.
In your case you are trying to do both the things at same time.
In my view either you should maintain EVV or ERL.
Hope you will try and let me kow if it works allright
Reward points if useful
Regards,
Amrish Purohit

Goods Received Not Invoiced Account is accumulating credits/not reconciling

Newbie here. I found the forum today and hope you guys can help me.
My company runs SAP B1 and I have two questions (for now):
1. The Goods Received Not Invoiced Account is accumulating a larger and larger credit balance even though there are no Goods Receipt POs open. There are a lot of transactions I'd have to dig through to figure out the problem. So, I'm wondering if any of you can direct me to some transactions that typically cause this.
2. The Goods Received Not Invoiced Account is not automatically reconciling GRPO and Invoices. Should it? Or do I have to manually do that periodically?
Thanks in advance.
Steve

Steve,
Have you mapped the Goods received not invoiced under
Admin > Setup > Financial > G/L A/C determination > Inventory Tab > Allocation account
The above account is a liability account under COAs.
Once you close the GRPO the balance in the Goods received not invoiced balance will reduce.
Then you can reconcile the account if the amount to reconcile is zero.
Hope this will help.
Regards,
Joel

Accounting Journal is posted while making a Goods Receipt PO

Hi All,
Why an Accounting Journal is posted while making a Goods Receipt PO in SAP B1. What is the detail of this Journal (Dr and Cr account).
Thanx.

Hello Sibasish,
An accounting journal is created when you do a Goods Receipt for a stock item. A stock item is an item defined in the Item Master Data with the Stock Status as ticked.
The journal entry is typically as follows:
Dr. Inventory
Cr. or Dr. Variance Account (when stock is valued at Standard Valuation)
Cr. Allocation Account
The above accounts come from Warehouse, Item Group or Item Level depending on your set up in the Item Master Data -> Stock Tab -> G/L Accounts Determined By field.
I hope this helps.
Regards,
Lorna Real

ALLOCATION not working

Hi,
I have an account named "Percent" for which I have loaded values for every month of the year. I have another account named "Temp" for which I have loaded an allocation amount for the period "2009.INP".
I am trying to allocate to an account "Study".
I have written the following logic in the default.lgf file
*RUNALLOCATION
*FACTOR=USING/100
*DIM Account WHAT=TEMP; WHERE=Study; USING=PERCENT
*DIM Time WHAT=2009.INP; WHERE=BAS(2009.TOTAL); USING=<<<
*ENDALLOCATION
The allocation is not happening when I run an input schedule and check in a report.
Please help!
Thanks,
Prasanth.

Your allocation seems a bit too simple.
Where is the Entity dim? You are allocating accounts over time for what purpose? Product, company, region, etc..
*ALLOCATION
 *NAME=BUSW3001
 *FACTOR=USING
 *DIM ACCOUNTDIM WHAT=OPERATING_EXPENSES; WHERE=A_BUOPEX_SALES; USING=A_BUSALES_PER
 *DIM ENTITYDIM WHAT=BAS(MAXIM); WHERE=CO_1001; USING=CO_1001
 *DIM PROFIT_COST_CENTER WHAT=[PROFITCENTER]='3001'; WHERE=>>>; USING=BAS(PL_DIV01),BAS(PL_DIV02)
 *DIM DATASRC WHAT=BU_PL; WHERE=BU_EXP_ALLOC; USING=<<<
 *DIM CURRENCYDIM WHAT=USD,LC; WHERE=<<<; USING=LC
*ENDALLOCATION
This allocation takes the operating expenses from a series of cost centers with certain property called PROFITCENTER and allocates those dollars to 2 different rollups ( See the DIM PROFIT_COST_CENTER line) for product lines and assigning it to a single account of A_BUOPEXSALES.
The rates are stored for each particular Product line in the account A_BUSALES_PER in the company CO_1001 accross time which is being passed to the logic. Since the rates are already decimal based, you can short cut the *FACTOR to just *USING. All the parameters in the *USING tell the allocation where to find the rates. Make note of the >>> and <<<< to note the direction of the allocation as well. Think of them as FROM and TO
If you have access to the SQL server, you can use the logic output and run the SQL calls manually to see where the discrepancy is occurring. Usually it is where you are telling it to find the rates is the problem.
Hope that helps.

Allocation Account

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