Posting a Guarantee Made

Purpose

You have agreed with a customer that you will assume to guarantee a sum of $11,400, thereby accepting potential liability for the amount. This liability is recorded on the customer and on the G/L account. This liability is recorded on the customer and on the G/L account.

Process Flow

The guarantee is posted as follows:

  1. You post a guarantee made to your business partner’s account. The system posts to the special G/L account automatically.

  2. The system makes the offsetting entry to the clearing account.