Special GL Accounts

[Former Member]

Hi,

Can any1 explain why do we use special GL accounts. What kind of special gl accounts exist and how does this concept of special gl accounts works? I know they are used in down payment, are there any other place where special gl accounts are used.

Thanks,

shruti

[Muhammad]

You guys explained Special GL Account excellently.

[Former Member · Accepted solution]

Hi,

It is basically used to have a better analytical look to the way we process the transactions.

Suppose we make a down payment to Vendor, we process it through special GL Indicator. By doing so, this gets reflected even in the Purchase Order that a down payment has been made to the Vendor. With this information the Purchasing Department can follow up with the Vendor without any much of reconciliation to the Vendor Accounts.

Also whenever we receive or issue any guarantees, these are also handled through special GL transactions.

This helps us to report more effectively with regard to the contingent liabilities during the preparation of the Financial Statements.

Hope this info throws some light on the question you had asked.

Appreciate if you could award points, if you find this information helpful.

Regards,

Venkat

[Former Member]

Hi

1. Down payments

- Down payment request

- Down payment

2. Bills of exchange

- Bills of exchange payment request

- Bill of exchange

- Check / Bill of exchange

3. Other transactions

- Individual value adjustment

- Guarantee of payment

- Interest

- User-defined

Regards,

Attila

[Former Member]

hi,

Special GL Indicator means in Advances (Downpayments) sap treated as special gl indicators.

Find the following steps for down payment

1.Create Gl A/c for vendor Down Payment

2.Define spcl gl indicator And Link the special gl with vendor recon a/c-OBYR(Vendor)OBXR(Customer)

3.Post Down Payment F-48

4.Enter vendor invoice F-43

5.Transfer Sp cl Gl To normal Gl f-54

6.Clear vendor F-44

Also Special GL Indicators are created for vendor as well as customer,

For vendor , go to transaction code OBYR

For customer , go to tCode OBXR.

Hope this will helps u out...

Cheers

Ranjit Kumar

[Former Member]

I already know the steps., but what i want to understand is WHY do we use special GL accounts..whats the purpose of using special gl a/c's

[Former Member]

Hi,

Let me explain your question in Accounting point of view -

---

We know very well the different accounts like, personal, real and nominal. All the real and personal accounts are shown in the B/s and nominal accounts are in P & L Accounts. Personal Accounts includes Natural persons, legal personalities (like Comapnies, Firms and Association of persons) and also verity type of accounts like outstanding and prepaid accounts.

In the case of natural and leagal persons we have separate masters (like vendor and creditor, Employees etc.,) but in the case of out standing things we have no separate area which is required. So in SAP these can be treated as Special GL Accounts,

In Special GLs there are different things are included as follows:

1 All the out standing (prepaid, Advances Recived) nature items

2 All the items of trasactions which are treated as Contingetn Liabilities (which can only be shown as Noted items to the Final Accounts)

3 All the types of items like Guarantees given / Recived to pay or to fulfill the obligations.

Example for Contingent Liability is .... Say your friend X paid me Rs. 5000 and you given surity specifying that "if your friend fail to pay the amount you will pay me". Then these Rs. 5000 will become a contingent Liability only for you. Because, at present, it is neither Asset for you nor Liability. If your friend pays me promptly, then no liability / obligation on you. Similarly, you will be made liable only if your friend fails to fullfill his obligation. But at current time you cont decide because you dont know that your friend is going to pay me or not.

Example for BG, -- You entering into an agreement of supply of finished Profuct to your customer. And this dealing with that particular customer is, say, forst time for you. So he need some surity / he demands some security deposit. He need this becasuse, You are the first supplier to him and your finished goods are used his production as raw material and if you not supply properly his dealings with his customers may effect.

in this case you must deposit amount in a nationalised bank on your customer's name. Absolutely it is an asset for you because cash is flown out side of the organisation and it is kept in favour of Customers.

So these type of expenses / items need to show separately and nature of these transactions are much differ from that of other transactions. So Special GL is arrainged in SAP to configure all these...

I hope you may clear now...