Fields that appear on the GL account company code segment are explained below:
Account currency: account currency is the currency in which account is managed.
This field should be filled with company code currency. By doing so, the account allows to post entries in any other currency in that account. If at any case, any other currency is used apart from company code currency, the posting is restricted to that currency only.
We should know all the requirements for the account before setting up this entry because it is difficult to change this settings after the account has been posted to GL account
Only balances in local currency: This indicator is set only if we want the balances in account to be updated in the local currency. This indicator affects how clearing will work in this account if the account is to be managed on an open item basis. The indicator should usually be set for clearing accounts. if the account is not managed on the open item basis, this indicator is not needed.
Exchange Rate Difference Key: This key determines which account valuation gain or losses are posted to for the account you are configuring. This indicator is only set for accounts that are not managed on an open item basis and are kept in a foreign currency instead of local currency.
Tax Category: This indicator controls the types of taxes permissible to the account configured.
Below are the list of tax categories which can be configured
"-" Indicates only Input tax. The account can only be posted with input tax which are paid by organizational to the government
"+"Indicates only Output tax. Output tax which are levied by the organization to its customer are allowed for posting in this account.
"*"This symbol indicates both input and output tax postings are allowed with this accounts.
Apart from these, there are other two symbols
"<"This symbol should be used only for tax accounts.It signifies input taxes on tax account.
">"this symbol signifies output taxes on a tax account
Posting Without tax allowed:The selection of this indicator allows both taxable and non taxable postings. If the tax category is specified in the earlier field without selecting this indicator, the non taxable items will not be allowed to this account.
Recon.Acct for Acct type: This field denotes that the G/L account is being created is a reconciliation account for one of the sub ledgers. Below are the list is selections used for this field
"A" :This indicator is selected only if the recon account is created for Fixed Asset Sub ledger.
"K": This indicator is selected only if the recon account is created for vendor sub ledger
"D": This indicator is selected only if the recon account is created for customer sub ledger.
Alternative Account number: This field is used when we are using a country chart of account for the company code in addition to the regular chart if account.
Acct Managed In Ext. Systems:This indicator is used if the GL is used in other instances.In other words, we are using ALE on the project
Open Item Management: it is a reconcilation function. This box is selected if the account is managed with Open Item Management.All individual line items that make up the balances of the account and clear individual line items with offsetting line item is viewed in open item managed account. Open item managed account allows you to display the open and cleared items and amounts in an account.
Line Item Display: This box is selected if we want to see individual line postings in this account. We should keep in mind that if we select open item management indicator, this indicator must also be selected . However setting this indicator doesn't mean that account needs to be managed open item basis. we should also avoid choosing this indicator for accounts having large among of postings.
Sort key: The sort key determines what is populated in the allocation field of the G/L line item posting for the account. The allocation field is populated automatically by the system or manually by the user at the time o f document entry.
Authorization group: With the help if this field, we can limit who can make master data or change master data. We can populate this field with the authorization group which are in turn tied to authorization objects. Basis team helps in setting up authorization groups and profiles
Account currency: account currency is the currency in which account is managed.
This field should be filled with company code currency. By doing so, the account allows to post entries in any other currency in that account. If at any case, any other currency is used apart from company code currency, the posting is restricted to that currency only.
We should know all the requirements for the account before setting up this entry because it is difficult to change this settings after the account has been posted to GL account
Only balances in local currency: This indicator is set only if we want the balances in account to be updated in the local currency. This indicator affects how clearing will work in this account if the account is to be managed on an open item basis. The indicator should usually be set for clearing accounts. if the account is not managed on the open item basis, this indicator is not needed.
Exchange Rate Difference Key: This key determines which account valuation gain or losses are posted to for the account you are configuring. This indicator is only set for accounts that are not managed on an open item basis and are kept in a foreign currency instead of local currency.
Tax Category: This indicator controls the types of taxes permissible to the account configured.
Below are the list of tax categories which can be configured
"-" Indicates only Input tax. The account can only be posted with input tax which are paid by organizational to the government
"+"Indicates only Output tax. Output tax which are levied by the organization to its customer are allowed for posting in this account.
"*"This symbol indicates both input and output tax postings are allowed with this accounts.
Apart from these, there are other two symbols
"<"This symbol should be used only for tax accounts.It signifies input taxes on tax account.
">"this symbol signifies output taxes on a tax account
Posting Without tax allowed:The selection of this indicator allows both taxable and non taxable postings. If the tax category is specified in the earlier field without selecting this indicator, the non taxable items will not be allowed to this account.
Recon.Acct for Acct type: This field denotes that the G/L account is being created is a reconciliation account for one of the sub ledgers. Below are the list is selections used for this field
"A" :This indicator is selected only if the recon account is created for Fixed Asset Sub ledger.
"K": This indicator is selected only if the recon account is created for vendor sub ledger
"D": This indicator is selected only if the recon account is created for customer sub ledger.
Alternative Account number: This field is used when we are using a country chart of account for the company code in addition to the regular chart if account.
Acct Managed In Ext. Systems:This indicator is used if the GL is used in other instances.In other words, we are using ALE on the project
Open Item Management: it is a reconcilation function. This box is selected if the account is managed with Open Item Management.All individual line items that make up the balances of the account and clear individual line items with offsetting line item is viewed in open item managed account. Open item managed account allows you to display the open and cleared items and amounts in an account.
Line Item Display: This box is selected if we want to see individual line postings in this account. We should keep in mind that if we select open item management indicator, this indicator must also be selected . However setting this indicator doesn't mean that account needs to be managed open item basis. we should also avoid choosing this indicator for accounts having large among of postings.
Sort key: The sort key determines what is populated in the allocation field of the G/L line item posting for the account. The allocation field is populated automatically by the system or manually by the user at the time o f document entry.
Authorization group: With the help if this field, we can limit who can make master data or change master data. We can populate this field with the authorization group which are in turn tied to authorization objects. Basis team helps in setting up authorization groups and profiles
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