After posting a Customer Invoice for Services, you notice that the Automatic Account Determination is wrong for one of the Sets of Books i.e. you expect another G/L Account to be determined for the Line Items.
Reproducing the Issue
- Open the General Ledger Work Centre
- Go to Subview Journal Entries
- Search and display the relevant Journal Entry for your Customer Invoice
- For one of the Sets of Books, you notice the wrong G/L Account is being determined at the Line Items level
- Open the Product and Services Portofolio Work Centre
- Navigate to View Services
- Search for Service XYZ (where XYZ is the Service ID)
- Click Edit and the View All
- Go to the Valuation tab
- Select the company involved in the business transaction
- You can see that the Account Determination Group maintained is ABC (where ABC is the Account Determination Group ID) and is the same for both Sets of Books
Therefore, you expect that Line Items are going to be determined based on Account Determination Group ABC for this Service.
Even though the correct G/L Account is associated to the right Account Determination Group ABC in Business Configuration activity Charts of Accounts, Financial Reporting Structures, Account Determination, you have maintained your data in a way that does not allow for the expected G/L Account to be determined.
The system's behaviour is nonetheless the one expected.
- Open the Business Configuration work Centre
- Go to Implementation Project, select the relevant one
- Open the Activity List
- Navigate to Fine Tune
- Search for and open the activity Charts of Accounts, Financial Reporting Structures, Account Determination
- Navigate to Account Determination, select Sales
- Select the relevant Chart of Accounts
- Navigate to the Revenues tab and choose 2 - Service in the scroll down menu
- In the table displayed, you can see that the expected G/L Account is associated to an Account Determination Group for Services (ABC) but that Account Determination Group for Customers is left empty
This configuration explains why the desired G/L Account is not picked up as a Line Item on your Journal Entry.
The system determines the G/L account according to different sets of combinations that are prioritised differently:
- Combination 1 - Highest Priority:
Account Determination Group for Customers and Account Determination Group for Services are both maintained with relevant groups fr the G/L Account maintained in Sales Revenue
- If this condition is not met, the system examines Combination 2:
Account Determination Group for Customers is maintained but Account Determination Group for Services is not. The system is going to pick up the G/L Account maintained in Sales Revenue for this combination
- Lastly, if this condition is not met eihter, then the system examines Combination 3 - Lowest Priority:
Account Determination Group for Customers is not maintained but Account Determination Group for Services is. The system determines the G/L account maintained in Sales Revenue as Line Item.
In this case, you would expect that Combination 3 would apply, however, since either Combinations 1 or 2 are fulfilled and both have a higher priority, another G/L Account is being determined, based ob the system's logic.
To adress this situation, you can either change the G/L Account maintained in the other Combinations used by the system OR we would recommend that both Account Determination Group for Customers and Account Determination Group for Services are maintained with the relevant data for all G/L Account to ensure that determination is done according to the system's logic and based on the combination with the highest priority.
KBA , SRD-FIN-GL , General Ledger , How To