Other Special G/L Transactions- Guarantees, payment requests, and creation of own Special G/L Transactions - SapGurus Notebook: SAH Created: 11/02/2019 09.43 URL: http//sangurus.com/special-g|-transactions-guarantees-payment-requests-creatl Other Special G/L Transactions- Guarantees, payment requests, and creation of own Special G/L Transactions 06060 Apart from the down payment and the down payment request discussed in the last blog post, other special G/L Transactions exist. In this week's post, as promised, we will discuss the part 2 of our series on SAP Special GIL Transactions. We will discuss: a) Guarantees and payment requests b) Creation of own Special G/L Transactions. 1) Guarantees A guarantee is an assurance or promise of the lending institution to cover the loss arising from the default of a borrower. To put it simply, if the debtor fails to pay the debt the bank/lending institution covers it. An organization can ask for a bank guarantee in a business relationship or be asked to provide the same as a requirement to conclude a particular sales/purchase transaction. Note that no physical exchange of cash, goods or services happen at this time, this is just a guarantee that when such occurred the agreement willbe honored by the parties or that the guarantee will be invoked. Guarantees made or received are typical cases of a Special G/L. Transaction in SAP. Guarantees made or given in a sales transaction are normally shown in the notes to the balance sheet. Likewise, Guarantees received in a purchase transaction are treated as off balance sheet items (meaning it is not normally displayed on the balance sheet). It is however a good practice to have an overview of the guarantees that you have received for internal use only and therefore to record it. a) Guarantees Received As noted above, guarantees received are off balance sheet items and are posted as special G/L transactions. . They are posted in the standard system as special G/L transactions in a form of a statistical posting. You post a guarantee received to your vendor's account which is link to an alternative reconciliation account in configuration, the system then makes the offsetting entry automatically to a clearing account (you can call this Guarantees Clearing Account). Follow the menu path below for the configuration of the Guarantees Received IMG — Financial Accounting (New) — Accounts Receivable and Accounts Payable — Business Transactions — Postings with Alternative Reconciliation Account — Define Alternative Reconciliation Account for Vendors Or use transaction OBXT or FBKP @ +1481 @@/ CHR 2nHxaim @oag Acct Type SGLInd. Name Descristion Select Special G/L indicator “G" and double click on ithart of Accounts, FS ‘Account Type vendor Specel G/L ind. [5] Guarantee receved |_Account assignment Recon. acct Specel G/L account Planning level [20001000 | [s1001000 | {xs] oO [20001010 |] [s1001000 | [xs] Oo Click on properties @ (0/C@@/ SHH SESS A) “OH Accounts deste te [ef Vendor Special G/L [e] Guarantee received Properties Special G/L transaction types: Noted tems o (Q)Down payment/Down payment request Ral.to credit mit w Bill of exchange/Bil racuast Commitments warning 7) Tagetengiine. | 1 cede 5 [evantee Maintain your settings. Others: By selecting this indicator, you are simply saying that this special GIL Transaction is neither a bill of exchange, a bill of exchange payment request, a down payment, nor a down payment request. Characteristic of the Guarantee Clearing account G/L a) This G/L account should be defined as “post automatically only” b) Better to be defined as an open item management account. c) This account will serve the purpose of an automatic offsetting account. The automatic offsetting account is assigned in configuration, as in the below steps: