Open items, such as invoices that have not been paid, are incomplete transactions.To complete, the transactions they need to be cleared. A transaction is cleared when a clearing posting is carried out for an item or group of items, so that the resulting balance of the items is zero. True False.
You can archive documents with open items. The documents are not required to stay in the SAP ERP application until all open items are cleared. True False.
An example of post with clearing is as follows: An invoice is posted to a customer account. This invoice is regarded as an open item because at this point it is unpaid. The customer pays the invoice and the payment is assigned to the open item. The invoice is cleared with the payment and the resulting balance is zero.
In clearing procedure, where you manually select open items that balance to zero from an account, following are examples: For bank subaccounts and clearing accounts For situations where you have agreed upon a debit memo procedure For refunds from a vendor At the time of retiring an asset.
A clearing transaction always creates a clearing document. False True.
When using the post with clearing function, enter the clearing document amount and select the open items that require clearing. If the total amount of selected open items equals the amount of the clearing document, SAP ERP clears the open items by creating one or more clearing items. If the total amount of selected open items does not equal the amount of the clearing document, SAP ERP allows you to post the difference. True False.
The following options are available for clearing open items: Clear several accounts and account types. Clear items in any currency Post differences that result from assigning items to each other. Enter any number of additional line items (for example, bank charges).
A post with clearing transaction can only be performed automatically using the automatic payment program. True False.
Using the Clear Account function, the system closes the open items that have zero balance between them within an account. The SAP ERP application automatically marks these open items as cleared and creates a clearing document. True False.
Each cleared item contains the following information: Clearing document number
Clearing date Posting date.
The clearing date can be either the current date or a date defined by the user.
The Clear Account function can be used on any account managed on an open item basis in the general ledger and the sub ledgers. True False.
Following are the steps of Automatic Clearing Program: Group Items for each Account. If Balance is Zero, Items are marked for clearing. Define Document Type.
Following are prerequisites for Automatic Clearing Program: User criteria must be defined in customizing. Accounts to be cleared must be defined for automatic clearing.
Items that are not cleared: Noted Items Statistical Postings, Bills of exchange postings Items with withholding tax entries. Down payments Down payments can only be cleared if down payment clearing items of the same amount have already been posted.
You can use the automatic clearing program to clear open items for the following accounts: General Ledger Sub Ledger Noted Items.
The automatic clearing program groups items within an account that have the same entries in the following fields: Company Code Account type Account Number Reconciliation Account Number Currency Special Ledger Indicator.
If the balance (in local currency) of items within a group is zero, the SAP ERP application automatically clears them and creates clearing documents. All accounts requiring automatic clearing must be defined in Customizing. True False.
The automatic clearing program does not clear the following items: Noted items Statistical postings and certain special general ledger transactions relating to bills of exchange Down payments : Down payments can only be cleared if down payment clearing items of the same amount have already been posted Items with withholding tax entries Open Items.
The SAP ERP application does not automatically fills the assignment field for a line item when you post items according to the Sortfield entry in the master record.
True False.
The assignment field can be a combination of up to four fields with a maximum of 18 characters. For example, to display the document number with 10 characters and the posting date with six characters, the SAP ERP application includes them in the definition of the assignment field. False True.
if the sort key is set to the purchase order number in the business partner master record, then the SAP ERP application fills the assignment field in the business partner line item with the purchase order number. True False.
If the sort key is set to the cost center in a general ledger master record, then the SAP ERP application fills the assignment field in the general ledger line item with the number of the cost center. True False.
You can define which numbers (purchase order, order, delivery, or billing document number) are copied into the sales order management document as reference and assignment and then transferred to Financial Accounting. You can then use these fields as selection criteria in Financial Accounting. False True.
Line item sorting in the line item display and clearing functions is not based on the assignment field. False True.
You can use the reference and assignment in the Sales Order Management billing document to trace the document in sales order Management that the accounting document is based on. True False.
The reference and assignment in the accounting document are copied from the reference and assignment in the sales order management billing document. True False.
Manual payment process includes the following : A manual payment is a transaction that clears an open item, such as an invoice. The manual payment assigns a clearing document manually. An incoming payment, which is used in accounts receivable, clears an open debit amount.
An outgoing payment, which is used in accounts payable, clears an open credit amount.
Clear an open item automatically.
To process a manual payment, proceed as follows:
Enter data in the document header.
Select the open items to be cleared Save the transaction.
.
The data entered in the document header is similar to the data entered when posting invoices.
True False.
The document header consists of the following sections:
The Payment Header Bank Data Selection of Open Item.
Enter the following information in the payment header section of the document header:
The document date The document type, proposed by the SAP ERP application and based on the transaction called
The company code, if no code is proposed The period specifications include the posting date and the posting period. The current date is the default posting date, and the posting period is derived from the posting date.
The currency specifications, which include the currency code, the exchange rate, and the date for currency translation. In the absence of an exchange rate or translation date, the application uses the exchange rate from the exchange rate table on the posting date Any references needed to identify the incoming payment, such as the reference document number, document header text, and clearing text fields.
.
Enter the following data in the Bank Data section of the document header: The G/L account number for incoming or outgoing payments. The total payment amount. The bank charges for services. The SAP ERP application automatically posts these charges to a special expense account The value date, which is the date used to evaluate the position in cash management. It may be the current date, which is the default date in the system. The Text field, which is an optional description of the item. Start the line with "*" to enable the text to be printed on external correspondence too. You can also work with text templates to select an entry from a list of standard texts. The assignment number in the Assignment field, which is created by the SAP ERP application or entered manually.
The SAP ERP application references the following information when calculating post charges: Incoming payments : The application adds the bank charges to the payment amount to form the clearing amount.
Outgoing payments : The application subtracts the bank charges from the payment amount to determine the clearing amount. Contra entries .
You need the Account and Account Type fields to determine the account that contains the open items. In this area, Account refers to the account number of the business partner and the account type for this account. True False.
You can not select normal open items and/or special general ledger transactions for processing. True False.
You can use the number of a payment advice note, which is either entered manually or created by the SAP ERP application, to select the open items. False True.
You can use additional selection criteria defined in the configuration to select the open items. You can use the Distribute acc. to age or Auto Search functions to speed up the selection process.
True False.
You can post the document if the Amount Entered field is the same as the Assigned field.
The cash discount granted is determined by the terms of payment of the line item. The SAP ERP application calculates the assigned amount based on the cash discount. True False.
To change the cash discount, either overwrite the absolute cash discount or delete the cash discount percentage rate. The discount must exceed the set tolerance limits.
True False.
If the debits and the credits match, you can post the completed document.
If you subsequently discover that the document contains an error, reset the cleared items, reverse the document, and re-enter the original posting correctly.
True False.
The Post Incoming Payments: Process open items screen lists all of the unassigned open items.Unassigned open items can include payments, debit or credit memos, and invoices.Depending on the SAP ERP application settings, the status for all items can either be active or inactive.
True False.
The SAP ERP application does not carry out automatic postings, such as tax adjustment, bank charges, and exchange rate differences, when clearing open items. True False.
You can enter bank charges when you enter the bank data. The SAP ERP application automatically posts the bank charges to the general ledger account. True False.
To perform manual cross-company code payments, assign a clearing transaction. A clearing transaction can be either an incoming payment or an outgoing payment. Assign the clearing transaction to a combination of the paying company code and the company code for which the payment is being made. Then, when you select the open items, the SAP ERP application displays the open items from each company code. True False.
You can reset clearing for individual documents. When you reset clearing, the SAP ERP application removes the clearing data from the line items.
The SAP ERP application logs the changes and displays them in the change documents. In Accounts Receivable, the application corrects the payment history and the credit limit, if applicable. True False.
In accounting, tolerances are divided into the following groups:
Employee tolerance groups G/L account tolerance groups Customer/vendor tolerance groups Balances tolerance groups.
The employee tolerance group controls the following factors:
Upper limits for posting transactions Permitted payment differences Employee Posting Limit.
The customer/vendor tolerance groups provide specifications for the following procedures:
Clearing transactions Handling permitted payment differences Posting residual items from payment differences Identifying tolerances for payment advice notes.
The G/L account tolerance groups control the permitted payment differences for automatic clearing procedures.
True False.
Specifications for permitted payment differences are found in both G/L account and customer/vendor tolerance groups. These specifications control the automatic posting of cash discount adjustments and unauthorized customer deductions.
True False.
The SAP ERP application considers the entries in both groups during clearing. The payment difference must be within both tolerances to be handled automatically.
The entries in the tolerance groups are always in the local currency.
True False.
A payment difference normally occurs during the clearing of an open item. The SAP ERP application then compares this difference to the tolerance groups of the employee and the customer/vendor.
If the payment difference is within tolerances, the difference is automatically posted as either cash discount adjustment or unauthorized deduction. Otherwise, the difference is processed manually. True False.
If the payment difference is immaterial, the SAP ERP application may process it automatically by performing the following steps:
Adjusting the cash discount up to certain amounts Writing off the payment difference to a special account
Immaterial payment difference will be ignored by ERP System.
You can not define the limits within which a payment difference is considered to be immaterial in a tolerance group. True False.
When defining tolerance groups for employees, Pre define the maximum cash discount percentage that an employee can grant for business partners in a line item. Pre defining the cash discount percentage enables you to post the payment difference by adjusting the cash discount (when within the defined limits) or by posting to a separate expense or revenue account.
True False.
If you want to define different tolerances for employees, specify the amount limits for each employee group. If you have defined differing tolerance groups, you have to assign employees to a specific tolerance group by selecting the activity “Assign users to tolerance group”. This is where you enter the employees in the relevant group by giving special tolerances to a group so that the employees in this group are authorized to adjust the cash discount up to the limit prescribed in the tolerance group.
True False.
If the payment difference is beyond the tolerance limit, you must process the payment difference manually.
True False.
To manually process the payment difference, proceed as follows:
Post the payment difference as a partial payment : All the documents remain in the account as open items.
Post the payment difference as a residual item: Only the residual item remains in the account. The original document and the payment are cleared. The SAP ERP application creates a new document number with reference to the original documents.
Post the payment difference to a different account : This is a different posting that uses reason codes and automatic determination.
Write off the payment difference : This is manual account assignment.
The customer or vendor tolerance groups contain entries that control the residual items and specify the following conditions:
Whether the terms of payment for a residual item are the same as the terms of the cleared item or whether the terms of payment are fixed.
Whether a cash discount is only partially granted.
Whether the residual item has a maximum dunning level or is printed separately, using a specific dunning key.
If you know the reason for a payment difference, you can enter a reason code.
.
You can use reason codes to describe the reason for the payment difference. To assign more than one reason code to a payment difference, choose Distribute Difference.
True False.
Reason codes can be assigned to the following items:
Difference postings Partial payments Residual items Payment Postings.
Reason codes can not be used to analyze and post process payment differences.
True False.
Reason codes also have the following additional optional functions: Control of the type of payment notice sent to a customer Control of the account where a residual item is posted Automatic posting of a residual item to a specified G/L account
Exclusion of disputed residual items from credit limit checks
.
When open items are cleared in a foreign currency, exchange rate differences may occur. This happens due to fluctuations in exchange rates.The SAP ERP application automatically posts these exchange rate differences to the revenue or expense account as realized gains or losses.
You define the accounts for posting these differences when configuring the SAP ERP application.
True False.
The SAP ERP application does not store the realized exchange rate difference in the cleared line item.
True False.
Exchange rate differences are also posted when open items are valuated for financial statements.
The exchange rate profit or loss is posted to a separate expense or revenue account for exchange rate differences as an offsetting posting.
True False.
When clearing an open item that has already been valuated, the SAP ERP application reverses the balance sheet correction account and then posts the remaining exchange rate difference to the account for realized exchange rate differences.
True False.
You must assign a revenue or expense account to all reconciliation accounts and all G/L accounts with open item transactions in any foreign currency. You must assign these accounts for realized losses and gains.
True False.
You can assign one gain or loss account to the following currencies and currency types:
All currencies and currency types Per currency and currency type Per currency Per currency type
Currency Exchange Rate.
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