CFR Example: Payment with Invoice Reference

Scenario

This example considers the update logic of cash flow reporting for a direct payment with clearing of a known vendor invoice.

The graphics below illustrate the individual steps of the process.

CFR : Invoice – Step 1

  1. In the first step of this example, a vendor invoice is posted (entry view)and updated to the (leading) accrual ledger (general ledger (G/L) view). Since for cash flow reporting the scenario PSM_CL is assigned to an accrual ledger, the corresponding document in the G/L view is split and updated concerning the revenue/expense account (RE_ACCOUNT field).

  2. CFR : Payment with Invoice Reference – Step 2

  4. Next, the payment clearing the invoice is made from the bank clearing account. As in step 1, the corresponding document in the G/L view is split and updated concerning the field RE_ACCOUNT. With the inheritance mechanism, the information about the causing expense accounts (RE_ACCOUNT) is transmitted into the split version (Internal View Acc Interface) and the general ledger view of the payment document.

  5. CFR : Bank Statement – Step 3

  7. In the last step, the bank statement is posted - from the bank account to the bank clearing account, thereby clearing the open item. Here the information about the original expense accounts is transmitted from the bank clearing account to the final bank account.