Account Determination - SAP Documentation

Example: Account Determination

This example shows how the Automatic Offsetting Account Determination program determines the offsetting accounts for a customer invoice with five line items as follows:

Customer Invoice for TverSteel

This graphic is explained in the accompanying text.

Prerequisites

In Customizing, you have prioritized the G/L accounts as follows:

Customizing Settings
Item No.	Priority	Account	Description	Debit	Credit
003	0	76701020	Deferred VAT	—	180
004	0	90103000	Deferred VAT offsetting	180	—

Process

The program sorts all the line items in the accounting document according to your Customizing settings.

First, it sorts them by G/L account, according to the priority that you have assigned to each G/L account.

In the example, the system sorts the line items as follows:

Line Items Sorted by Program
Item No.	Priority	Account	Description	Debit	Credit
001	10	62001100	Accounts receivable – TverSteel	1,180	—
002	30	90100000	Sales revenue	—	1,000
005	30	90100000	Output VAT	—	180
003	0	76701020	Deferred VAT	—	180
004	0	90103000	Deferred VAT offsetting	180	—

If two items belong to the same account, the program places the item with the highest amount first. Then it sorts them by line item number (lowest first), then by supplement line number, and finally by reference number.

Note Note

If none of the items in a document have any priority assigned to them, the auxiliary program cannot process the document and passes it to the main algorithm instead.

End of the note.

Since the first item in the sorted list is a debit for RUB 1,180, the program looks for the first credits or credits that also add up to 1,180. In this case, this is the next two items, the sales revenue item (RUB 1,000) and the output VAT item (RUB 180).
The program thus splits the accounts receivable item (item number 001) between the two credit items. That gives the following pairs:

First Two Pairs

It numbers the two parts of the accounts receivable item 001-001 and 001-002. The credit items are numbered 002-000 and 005-000 because they have not been split.

The program then eliminates the first three items from the list, so that the list now looks like this:

Remaining Line Items
Item No.

Priority

Account

Description

Debit

Credit

003

0

76701020

Deferred VAT

—

180

004

0

90103000

Deferred VAT offsetting

180

—
The program determines that the two remaining items are a pair. The final outcome is thus as follows:

Processed Accounting Document

Note Note

In step 2, if the sales revenue item’s amount were higher than the receivable, the system would still pair the two items, but it would create a residual item for the difference.

End of the note.