Illustrating Accounts Payable Regrouping

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Process the grouping of accounts payable open items by due date using the job template Regroup Receivables / Payables
  • Execute the reclassification of suppliers with debit balance using the Regroup Receivables / Payables job template
  • Explain the regrouping of accounts payable open items due to changed reconciliation account

Accounts Payable Open Items by Due Date Regrouping

Introduction

To provide externals with a better overview of the company's liquidity situation, payables must be grouped on the balance sheet according to their remaining life.

Business Scenario

Last week, Jake learned about reporting in a training session. During the course, someone from the Group Accounting department mentioned the Bike Company report receivables and payables based on their remaining terms on the balance sheet:

Receivables:

  • Less than one year
  • More than one year

Payables:

  • Less than one year
  • 1 – 5 years 
  • More than five years

Jake knows from his daily work that only one reconciliation account can be assigned to a supplier master record. This payable reconciliation account is uniquely assigned to the balance sheet item Payables – Less than 1 year of statement version 1010. This version is used for the legal reporting of the Bike Company.  

Jake remembers that some suppliers offer payment targets beyond one year. He wants to know how supplier liabilities will be accurately reported based on their remaining term.

Now it's Jake's turn to put this into practice. Let's see if he can regroup supplier open items according to their remaining term. In this video, Jake creates a test scenario in the SAP sandbox system.

Select the play button to learn how to regroup payables in SAP using the Schedule General Ledger Jobs app. Follow step-by-step instructions to ensure accurate posting and reconciliation. Watch now!

Jake's Summary

Use the Regroup Receivables/Payables template in the Schedule General Ledger Jobs app to organize your payables (and receivables) by remaining term. To use previous valuations (for example, foreign currency valuation), select them in the Use Valuations field in the job template's parameter settings.

Accounts Payable by Remaining Term Regrouping

In this exercise, you will execute and analyze the regrouping of accounts payable by remaining term.

Accounts Payables with Debit Balance Reclassification

Introduction

To ensure the balance sheet is correct, list receivables and payables separately. Suppliers with a debit balance at the end of the period should be displayed in the receivables section of the balance sheet.

Business Scenario

After his successful test, Jake met with his manager to discuss additional reclassification scenarios.

Select the play button to learn how to handle vendor accounts with debit balances and make adjustment postings in this informative video. Understand the posting logic and account determination process for a smooth transaction.

Knowing how to reclassify a vendor with a debit balance in the SAP System is crucial. To demonstrate this process, we will watch Jake demo this process. During the test, Jake will determine if vendors with a debit balance can be reclassified successfully.

Select the play button to learn how to reclassify vendors with a debit balance and analyze correction postings. Discover the step-by-step process and key parameters involved.

Jake's Summary

Transfer a vendor's receivable to the receivables item of the balance sheet if they have a debit balance in their payables account. Use the Regroup Receivables / Payables job template in the Schedule General Ledger Jobs Fiori app to organize and transfer amounts.

Reclassify Accounts Payable with Debit Balance

In this exercise, you will analyze the execution and results of the reclassification run of a supplier with a debit balance.

Reconciliation Account Change

If the reconciliation account in the vendor account master record was changed during a fiscal year, you can also use the Regroup Receivables / Payables job template to report all the payables at the balance sheet key date using the new payables reconciliation account.

To do this, select the Changed Rec. Acct. option in the Parameter settings of this template.

Note
First, the transfer postings required due to the change of reconciliation account are carried out. After that, the payables are sorted. Depending on the results, the adjustments required are determined and carried out.

Regroup Payables due to Reconciliation Account Change

In this exercise, you will analyze an already executed regrouping payables run in connection with a changed reconciliation account.

Glossary

Were there some terms in this lesson that you’d like further information on? See below a glossary of mentioned terms:

Vendor with Debit Balance: When a supplier owes more money to a company than the company owes to the supplier, the balance is shown as receivable instead of payable.

Grouping Payables by Remaining Terms: Reporting supplier liabilities for a specific key date, grouped by remaining terms.

Sort Method: Defines the remaining terms for payables (+ receivables and G/L accounts) and determines the account types for which transfer postings are to be made. 

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