Prepaid Expenses

Dear All,
I have been given a project named Prepaid Expenses. In this I have been told to look for the Debit Line Items fom the table BSIS with some validations & restrictions. Then to divide that Debit amount by the number of months it has been paid for. And after that to post that amount in the G/L accounts using BDC.
Does anybody have the idea regarding this how to start & how to go for this. And what all limitations we have to take care.
Waiting for ur replies.
Regards,
Nishu

Hello,
One of the options is to book the item in F-53.
Debit Vendor account - Credit sub-bank account (cash clearing account)
When they send the invoices of the expences, you can book them on the vendor acc,
then you can clear the two related open items in F-44.
REgards,
Endre

Similar Messages

Purchase Order for Prepaid Expenses

HI Guys,
I want to do a PO for a Prepaid Expense ( a balance sheet account). There's no account determination that helps me to do this since the only available AAM for balance sheet items are " " or blank for Inventory and A for Assets.
How would you PO a Prepaid Expense?
- L

HI,
I think this is not possible in MM. you can directly do it in the FI has you are saying no AAD settings are there.
Why dont you treat that as a down payment?
Thanks & Regards,
Kiran

How to amortize prepaid expenses

Is there a functionality in SAP wherein a certain prepaid expenses were incurred but subject to amortization for a certain no of periods. In this case, system will amortise automatically the actual expenses allocated to each periods.
Thanks
Robert

I think you can do this with creating accrual object......
SAP easy Access -> Accounting -> financial accounting -> General Ledger -> Periodic Processing -> Manual accuruals -> create accrual objects
Give company code, accrual object, start of life and end life
Then click on create button on item data tab
Give accurual type, accounting principle, amount, currency and accrual method.
You have to create one for costs and another for revenues
Then click on simulate button application bar and run
Then come to same screen, item data tab... click on one of the accrual object and then click on transfer accural item tab just above the line items
Then click on calculated accruals tab.. there you can see the planned accruals
Then click on posted accruals tab -- tehre you can see the posted accruals.
Then save. The created items is displayed in the navigation tree on the left
Everymonth run the T CODE FBS1

Travel expenses prepaid by Company

There is a certain mismatch between Travel Agency invoices and Company prepaid expenses in Trip documents.
While within a Trip expenses are per Trip and Employee, the Travel Agency invoice can cover few trips and employees at once.
Today we are posting Company prepaid travel expenses from FI-TV via reconciliation account (Accounts Payable).
Is there any way to post Vendor account (Travel Agency) directly from FI-TV with a reference to external invoice number to avoid recon process?
At the receipt level there is no Vendor field (for Travel Agency), is there a standard way to have it?

I close this call.

Use AM module to post pre-paid expense asset amortization (Straight Line)

I'm new to this area and please explain in detail what I'm supposed to do for this requirement.
The requirement: Use AM module to post pre-paid expense asset amortization (Straight Line amortization)
The implementation of this capability will allow Property Accounting to enter prepaid expenses into the FA subledger and have SAP automatically post monthly straight line amortizations as part of the month-end process. The idea is to configure a new asset class for "prepaid Leasing Commission" assets that will have the following GL accounts.
GL Account: 159001000
Cost Center: 159001000
Profit Center: SN09120001
Non-Reconcilition Account: 159002000
Expense Account: 890304000
What I have done so far:
I have created an asset and have created a Cost center and assigned the profit center to that. I have also created a non-recon account. The question is where do I use the Non-recon account and the expense account and have the SAP post it automatically? Will be helpful if you can provide the steps I should be following and the tcodes for this. Thanks for the help.

Hi,
I would recommend that you go through the IMG of Fixed Asset Accounting and complete the FI-AA configuration.
You store the accounts to be used in postings in the node "Integration with General Ledger".
Requirements to use cost center as accounting object are documented in the SAP Help Portal as well as in note 684659.
Regards,
Markus

Track changes in opening / closing FI period

Does SAP have a standard report to track the changes made by opening / closing FI periods in a given date range for a particular company code using T Code OB52 and also track who has made the changes.
If there is no standard report what is the solution to get this

I would like to know steps or T-CODE for end year closing.
1) With TC: F.16 we can carry forward the balance to next year.
2) With TC: OBH2 copy the number ranges to next year
3) Open next year periods by selecting the Posting Period Variant.
4) Then test by posting the transaction in F-02
How about TC : OB52, when we can't run that steps?
Check List:
In order to arrive at correct profit or loss for the month following checklist can be followed:
Month end closing Activities
1) All the expenses including amortization, prepaid expenses, Preliminary expenses and accruals have been booked.
2) Complete Bank Reconciliation
3) Make sure that Sum of Inter company balances is Zero
4) Suspense Accounts should be cleared regularly.
5) Ensure that all documents related to MM & SD have been entered in system.
6) Ensure that all billing documents are released to accounting.
7) Calculate Overheads on all process Orders (CO43)
8) Technically complete all process orders which are fully processed (CORM).
9) Calculate Variance (KKS1)à (Relevant only if Standard cost is calculated).
10) Settle all process orders which are technically complete (CO88).
11) Close All settled Process Orders
12) Close MM period (Transaction Code: MMPV).
13) Carry out GR/IR clearing (F.13) transaction
14) Depreciation Run (AFAB) has been carried out for the month
15) Close FI Posting period after the month end closing activity is over.
Year end closing Activities
1) Calculate production work in progress on process orders which are not technically complete.
2) Carry out Assessment cycle for Cost Centers.
3) All month end closing Activities should be carried out.
4) Carry Forward Balances to next year
(With TC: F.16 we can carry forward the balance to next year.
With TC: OBH2 copy the number ranges to next year
Open next year periods by selecting the Posting Period Variant.
then test by posting the transaction in F-02)
We donu2019t use TC:OB52 for end year closing?
I have replied partly to your query. sorry for that. I have sent you the opening new year reords.
The closing procedure is as follows: -
1. Carry forward Vendor & Customer Balances: TC: F.07
2. Assets:
i) TC: OB 52 - for assets 2 years can be openned at a time.
ii) check which year is closed: TC: OAAQ
iii) Close the year 2004: TC: AJAB
Note: Unless depreciation for all the months is posted for all the assets you cannot close the year.
iv) Open year 2005: TC: AJRW
Hope the above clears your doubt.

Year End Closing Process

for year end process:
1)I need to Post all these items (i.e; B/S and P/L a/c items) for November 2007 and December 2007. please help me how to post all these items*
2)after posting I need to carryforward AR, AP, GL Balances to January 2008
3)then I need to do year end closing process.
BalanceSheet items:
Liabilities: Capital, Other Loans, Account Payable, Income received in advance, Provision for bad debts,
Outstanding expenses: wages, salaries, rent, taxes
Assets: land n building, machinery, vehicles, furniture,Investment, Bills receivable, accounts receivable,
Prepaid expenses, cash at bank
Profit & Loss items:
Expenses:Salaries,travelling,rent,postage,insurance,interest,advertise,audit & legal fee,repairs, depreciation.
Income: gross profit b/d,interest earned,commission earned,other income
so i need to make all these items fresh postings then i should carry forward it to january, then year end process.please help me how to post all these items then i can proceed further.
thanks in advance. i'll award points..

hi,
SAP FI Month End and Year End Activities
1 - Maintain Activity prices - KP26
2 - Release of Standard Cost Estimate - CK40N
3 - MM period close and open - MMPV
4 - FI period open
5 - Parked documents to be posted - FBV0, MIRO
6 - Reposting of Inter Office CC - KB61
7 - Bank Reconciliation
8 - Update Section Code where missing - J1INPP
9 - Maintain GRIR clearing - F.13
10 - Provision for current month - FB50
11 - Depreciation entry - FB50
12 - Exchange rate - To be Updated
13 - Revaluation of foreign currency open items - F.05
14 - Recognition of Inventory at Bonded warehouse - FB50
15 - Maintain Statistical Key Figures - KB31N/KP46
16 - Variance Calculation of Process Orders - KKS1
17 - Settlement of variances - CO88
18 - Assessment cycles - Aux/WH CC to Main CC - KSU5
19 - Assessment cycles - Functional CC to SBU CC - KSU5
20 - Assessment cycles - SBU CC to COPA - KEU5
21 - Profit Center Reposting - 9KE0
22 - Balance Sheet Adjustment calculation - F.5D
23 - Transfer Profit Center to AR & AP - 1KEK
24 - Transfer Inventory to PCA - 1KEH
if you want more details log on to following link.
http://help.sap.com/erp2005_ehp_02/helpdata/en/eb/1376b443c411d1896f0000e8322d00/content.htm
assign points if its useful

Exchange Rate difference in Balance Sheet-Revaluation in Foreign Currency

Hi
I wanted more clarification on the Exchange rate difference the system calculates when we generate a balance sheet and revalue at a fixed rate. The system does not give a breakup of the echange rate calculated. How do we arrive at the exchange rate.
And after having the exchange rate entries posted in the system. Can the system the show these values in the Balance sheet after Revaluation
Regards
Farheen

Dear Gordan
Below mentioned is the balance sheet which is Revaluated in Euro(System Currency)at a Fixed Rate of 1.42.
at the end of this report we can see that the system has calculated Exchange rate difference as Euro -66483.03 .We want a break up of that amount which is calculated by the system
Account Name     Beginning of Year(EUR)     Current Period(EUR)     Beginning of Year(Revaluated by EUR)     Current Period(Revaluated by EUR)
Asset                                          129,932.14        129,932.14                               115,984.30     115,984.30
Fixed Assets
Owned Assets
Leasehold Improvements
Computers
Office Equipment
Furniture And Fixtures
Vehicles
Medical Equipments
Tangible Assets
Capital Work-In-Progress
Capital Work-In-Progress - Assets
Investments     104,895.10     104,895.10                                 104,895.10 104,895.10
Long Term Investments
Short Term Investments     104,895.10     104,895.10     104,895.10     104,895.10
Short term Investments
Long Term Investments     104,895.10     104,895.10     104,895.10     104,895.10
121001 - Equity Investment in Subsidiary-India     104,895.10     104,895.10     104,895.10     104,895.10
Current Assets, Loans And Advances     25,037.04     25,037.04     11,089.20     11,089.20
Current Assets     25,037.04     25,037.04     11,089.20     11,089.20
Inventories
Sundry Debtors
Cash On Hand
Bank Balances with Scheduled Banks In Current Accounts     25,037.04     25,037.04     11,089.20     11,089.20
131401 - Marfin Popular Bank,Limassol,Cyprus-17911136139     9,935.51     9,935.51     9,935.51     9,935.51
131402 - Marfin Popular Bank,Limassol,Cyprus-179132258722     13,940.48     13,940.48
131403 - Marfin Popular Bank,Limassol,Cyprus-179932258780     1,161.05     1,161.05     1,153.69     1,153.69
Bank Balances with Scheduled Banks In Deposit Accounts
Loans & Advances
Loans to Subsidiary Companies
Loans to Employees
Advances Recoverable in Cash or for value to be received
Advances recoverable in cash or in kind
Prepaid Expenses
Advances recoverable prvn.for Doubtdebts
Deposits (General)
Advance Tax/Tax Deducted at Source
Pre-Launch Expenses (Deferred)
Liability     206,065.33     206,065.33     182,467.33     182,467.33
Loan Funds
Secured Loans
Term Loans From Bank
Short Term Loan from Banks
Vehicle Loans
Interest Accured But Not Due
Secured Loan from Companies
Unsecured Loans
Term Loans from Banks
Unsecured loans From Companies
Fixed Deposits
Unsecured loans From Holding Company
Unsecured loans From Subsidiaries
Deferred Tax Liability
Deferred Tax Liability
Deferred Tax Liability
Current Liabilities And Provision     206,065.33     206,065.33     182,467.33     182,467.33
Current Liabilities     182,467.33     182,467.33     182,467.33     182,467.33
Sundry Creditors     182,467.33     182,467.33     182,467.33     182,467.33
231101 - Sundry Creditors - Supplier     182,467.33     182,467.33     182,467.33     182,467.33
Advances From Customer
Overdrawn Bank Balances
Tax Deducted at Source
Tax Deducted at Source - Non Resident u/s 195
Other Taxes
Other Liabilities - Statutory
Other Liabilities - Salary Payables
Provisions     23,598.00     23,598.00
Provision for Expenses     23,598.00     23,598.00
232106 - Provision for Expenses     23,598.00     23,598.00
Income Tax
Accumulated Depreciation
Leasehold Improvements
Computers
Office Equipments
Furniture and Fixtures
Vehicles
Medical Equipments
Software & their License
Technical Knowhow
Equity     -76,133.19     -76,133.19     -66,483.03     -66,483.03
Shareholders' Funds     1,176.47     1,176.47
Share Capital     1,176.47     1,176.47
Authorized Share Capital
Equity Share Capital
Issued, Subscribed And Paid Up Share Capital     1,176.47     1,176.47
311201 - Equity Share Capital     1,176.47     1,176.47
Reserves And Surplus
Share Premium Account
Profit and Loss Account
Profit Period     -77,309.66     -77,309.66
Exchange Rate Differences               -66,483.03     -66,483.03
Edited by: Rekha Nagaraj on Dec 7, 2010 6:14 AM

Asset Sale with Retirement

Hi Gurus,
We have sold an asset to a customer. We want to retire any remaining balance of the asset. Below is the entry we have inputted in F-92:
       PK BusA   Acct                                                      PHP   Amount        Tax amnt
001 40             0000900000 Cl - Coll List                       862,724.00
002 50 0001   0000176550 Prepaid Expenses            25,564.38-                   I0
003 50            0000176550 Prepaid Expenses              8,000.00-                    I0
004 11            0000015152 Customer Name                  383,333.24-                 I0
005 50 0001 0000800125 Revenue From Asset         862,724.00-                 I0
MESSAGE: Posting is only possible with a zero balance; correct document
Kindly advise what could have been the missing entry for this one. Is there any other tcode that we can use?
Thanks,
Ellicec

Hi
1. In AO90, an asset sale account has to be specified...The field status group of this GL should be G029 or any thing which permits the field "Asset retirement"
2. In F-92, it is this account which needs to be mentioned and not the prepaid expense account
a. Enter your Customer No
b. Enter the Asset sale offset account (posting key 50)
c. Tick the field "Asset retirement" in this GL and enter the asset details to be retired
Regards
Ajay M

What are the year end and month end activities carried in FI?

Hi all,
I am new to FI, what is the steps or the activites/process to be carried out during the month end as well as the year end activities for FI.
Can anyone explain me about it and does sap provide any standard documentation on year end / month end activities.
Thanks
Pooja

Hi Pooja,
Please find the details below
Month end closing Activities
1. All the expenses including amortization, prepaid expenses, Preliminary expenses and accruals have been booked.
2. Complete Bank Reconciliation (T. Code: FF67)
3. Make sure that Sum of Inter Company balances is Zero
4. Suspense Accounts should be cleared regularly.
5. Ensure that all documents related to MM & SD have been entered in system. (T.Code:F-22 & F-43) 6. Ensure that all billing documents are released to accounting.
7. Calculate Overheads on all process Orders (CO43)
8. Technically complete all process orders which are fully processed (CORM).
9. Calculate Variance (KKS1)à (Relevant only if Standard cost is calculated).
10. Settle all process orders which are technically complete (CO88).
11. Close All settled Process Orders
12. Close MM period (Transaction Code: MMPV).
13. Carry out GR/IR clearing (F.13) transaction
14. Depreciation Run (AFAB) has been carried out for the month
15. Close FI Posting period after the month end closing activity is over (T.Code:OB52) Year end
Closing Activities:
1. Calculate production work in progress on process orders which are not technically complete. (CO88).
2. Carry out Assessment cycle for Cost Centers (T. Code: KSUB)
3. All month end closing Activities should be carried out.
4. Carry Forward Balances to next year With TC: F.16 we can carry forward the balance to next year. With TC: OBH2 copy the number ranges to next year Open next year periods by selecting the Posting Period Variant. then test by posting the transaction in F-02)
SAP FI Month End and Year End Activities
1 - Maintain Activity prices - KP26
2 - Release of Standard Cost Estimate - CK40N
3 - MM period close and open - MMPV
4 - FI period open
5 - Parked documents to be posted - FBV0, MIRO
6 - Reposting of Inter Office CC - KB61
7 - Bank Reconciliation
8 - Update Section Code where missing - J1INPP
9 - Maintain GRIR clearing - F.13
10 - Provision for current month - FB50
11 - Depreciation entry - FB50
12 - Exchange rate - To be Updated
13 - Revaluation of foreign currency open items - F.05
14 - Recognition of Inventory at Bonded warehouse - FB50
15 - Maintain Statistical Key Figures - KB31N/KP46
16 - Variance Calculation of Process Orders - KKS1
17 - Settlement of variances - CO88
18 - Assessment cycles - Aux/WH CC to Main CC - KSU5
19 - Assessment cycles - Functional CC to SBU CC - KSU5
20 - Assessment cycles - SBU CC to COPA - KEU5
21 - Profit Center Reposting - 9KE0
22 - Balance Sheet Adjustment calculation - F.5D
23 - Transfer Profit Center to AR & AP - 1KEK
24 - Transfer Inventory to PCA - 1KEH
25 - Assessment Cycle - Dummy PC to SBU PC - 3KE5
26 - Check for u201CDelivery made, not Invoicedu201D - VF03
27 - Match GL and PCA - KE5T
28 - Match PCA and PA
29 - Top Down Distribution in COPA - KE28
30 - Reclassification of GL balances
31 - Balance Carry forward (Year End Only) - F.16
32 - PCA Balance Carry forward (Year End Only) - 2KES
33 - Transfer to FI - 1KE8
Regards,
JA

Vendor Name FBL3N Not appear

Hi Friends,
I have done the configure for display vendor code, name in FBL3N but when i select changlayout system is not showing vendor? Please advice.
Configured in system Table BSEG Field Name LIFNR.
Regards,
Pankaj

You Can not get Vendor Name in FBL3N , for this You can use transaction Code KSB1 by putting gl range for the particular Period , After Executed you can Select Offsetting account thru Layout.
Here you can get Vendor Code for each expenses booked or other offsetting account like Provision for Expenses / Prepaid Expense etc.
Then thru LFA1 table you can get Vendor Name.
I hope this will help solve your problem
Reg
Umesh

Balance sheet account postings to Internal order

Hi All,
I have a situation in which I have to make a prepaid expense from a BS account but want to assign it to an internal order so that when this expense actually occur, I can use this internal order report for all the prepayment made against that expense. I can create a cost element for this BS account but this is not a good practice. Do you guys have any other idea that I can implement here which is good practice and also solve the problem.
Thanks
MKR

Hi
SAP Best practises is not to assign Internal Order to a Balance Sheet GL Account.
In the Standard SAP, you might get an error if you assign an order to a Balance sheet account, but you have an option to change the error message from error to warning.
You might have to change the field status group assign to the balance sheet gl account to make the Order as Optional Entry.
Regards,
Suraj

Avoid posting of realized exchange rate differences in 2nd local currency

Dear SAP fans,
The situation here in our company is that a company code is set up with NZD as 1st and EUR as 2nd local currency (currency type 30 "Group currency" for EC-CS consolidation).
Therefore, all postings (and balances) are also translated and saved in EUR (with the current exchange rate).
We now have an open item managed G/L account for prepaid expenses, which is used to collect postings which are then cleared later. It's however no payable/receivable account for vendors/customers. Therefore, it doesn't make sense to post realized exchange rate differences when clearing this account. This is however what SAP wants to do when we try to clear it.
For example, if I post today 100 NZD and two months later again 100 NZD to this account. If the NZD vs. EUR exchange rate changed in the meantime, then SAP won't let me clear this account without posting realized exchange rate differences, which makes however no sense.
Does anyone of you meet this problem before? Could you please give me a hint?
I thought about setting the "Only balances in local currency" indicator in the G/L account master but this helps only for differences between local and document currency (and not for differences in 1st and 2nd local currency).
Any help is highly appreciated!
Thanks and best regards,
Peter

Dear Padma,
Thanks for your answer. The customizing activities you mentioned are already set up in the system. This is not our problem.
The problem is however, that we don't want SAP to post automatically realized exchange rate differences between 1st and 2nd local currency as this doesn't make sense in this business case.
It's about an open item managed G/L account which is used to collect posting which are later cleared. It's not a payable/receivable account for customers/vendors where the posting of realized exchange rate differences makes sense.
We've thought about several solution which unfortunately all didn't help us:
- Don't setup realized exchange rate differences accounts or set them up only for group currency (in OB09)
- Set indicator "Only balances in local currency" in G/L master data
Best regards,
Peter

Doc Splitting in ECC 6.0

Hi All,
I would like to post an entry for Balance Upload. The entry would be like (eg)
Prepaid Expense Dr.
Bank Account Dr.
To GL Balance Upload Cr.
The above two line items have different Profit Center.
I am using the Doc Type SA with unspecified POsting. Also the above GL accounts are defined as BalanceSheet Item Category.
However the system is not able to Split the same.
Kindly advise

I have already mentioned that the Profit Center in the first two lines have been provided. However for the Third line it needs to derive based on the above line item and accordingly Split the Document, which the system is not able to do....

F-03 and fbra

hi,
what is f-03 clear gl account? what is the purpose of this tcode?
what is fbra reset clearing? what is the purpose of this tcode?
thanks
rgds

Hi,
If a GL Account is created as an open item managed GL Account, the Account can be cleared for debit and credit entries and the net balance in the account can be known.
Examples of Open Item Managed accounts are GR/IR clearing / Accrual Accounts / Prepaid Expenses etc. In case of GR/IR clearing account, the entries posted are as under:
(a) When Goods are receivced:
     Dr. Inventory A/c.
     Cr. GR/IR Clearing Account.
(b) When Invoice is received from Vendor:
    Dr. Vendor A/c.
    Cr. GR/IR Clearing Account.
In the above example the amount posted to GR/IR account will be same normally but with Debit and credit signs. Hence, these can be set off. When the clearing is done both the open items will be cleared items. A clearing document will be posted but it will not have any line items.
The clearing can be done using F-03 or F.13 (Automatic clearing). For Automatic clearing you need to define the criteria for clearing in transaction code OB74.
Thanks
Murali.

Prepaid Expenses

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