Table of Contents

1. G/L Account Determination .................................................................................................................................... 2

1.1 Sales Tab ......................................................................................................................................................... 2
1.1.1 Accounts Receivable ............................................................................................................................... 2
1.1.2 Permit Change of Control Accts .............................................................................................................. 3
1.1.3 Domestic Accounts Receivable & Foreign Accounts Receivable ............................................................. 3
1.1.4 Check Received & Cash on Hand ............................................................................................................. 4
1.1.5 Overpayment A/R Account, Underpayment A/R Account....................................................................... 4
1.1.6 Down Payment Clearing Account ............................................................................................................ 5
1.1.7 Realized Exchange Diff. Gain, Realized Exchange Diff. Loss..................................................................... 5
1.1.8 Cash Discount.......................................................................................................................................... 5
1.1.9 Revenue Account & Sales Credit Account ............................................................................................... 5
1.1.10 Dunning Interest & Dunning Fees ........................................................................................................... 6
1.2 Purchase Tab ................................................................................................................................................... 6
1.2.1 Domestic Accounts Payable & Foreign Accounts Payable ....................................................................... 6
1.2.2 Realized Exchange Diff. Gain, Realized Exchange Diff. Loss..................................................................... 6
1.2.3 Bank Transfer .......................................................................................................................................... 6
1.2.4 Cash Discount.......................................................................................................................................... 7
1.2.5 Cash Discount Clearing ............................................................................................................................ 7
1.2.6 Expense Account ..................................................................................................................................... 7
1.2.7 Purchase Credit Account ......................................................................................................................... 7
1.2.8 Overpayment A/P Account, Underpayment A/P Account ....................................................................... 7
1.2.9 Down Payment Clearing Account ............................................................................................................ 7
1.3 General Tab ..................................................................................................................................................... 8
1.3.1 Credit Card Deposit Fee .......................................................................................................................... 8
1.3.2 Rounding Account ................................................................................................................................... 8
1.3.3 Reconciliation Difference ........................................................................................................................ 8
1.3.4 Period-End Closing Account .................................................................................................................... 8
1.3.5 Realized Exchange Diff. Gain ................................................................................................................... 8
1.3.6 Realized Exchange Diff. Loss.................................................................................................................... 8
1.3.7 Bank Charges Account ............................................................................................................................. 9
1. G/L Account Determination
Use this window to define default G/L accounts for transactions created in SAP Business One. Each of the window's four tabs
contains the definitions for G/L accounts related to a specific area of the business activity: Sales, Purchase, General, and
Inventory.
To open this window, choose Administration Setup Financials G/L Account Determination

1.1 Sales Tab

1.1.1 Accounts Receivable
Opens the Control Accounts – Accounts Receivable window, in which you define default G/L accounts for customers.
1.1.2 Permit Change of Control Accts

Select if you want to assign different control accounts to different customers. Assigning control accounts to each customer is
done in the Business Partner Master Data window. If this option is not selected, the control accounts defined in the Control
Accounts – Accounts Receivable window are used for all customers.

1.1.3 Domestic Accounts Receivable & Foreign Accounts Receivable

Define the respective collective accounts for posting sales to domestic and other foreign customers. SAP Business One posts all
sales to customers to this collective account, making your current total sales available at any time. All transactions are also
posted to the specific customer accounts. This account would be a control account (In control account system won’t allow user
to create manual Journal Entry). Usually here we have to link Sundry Debtors A/C. For more details please refer screen shot of
Chart of account with control account settings.
1.1.4 Check Received & Cash on Hand

Define the accounts for posting customer payments with checks or in cash. You will usually specify the check register and cash
register. Please note that here only Cash Account will appear for selection. For more details please refer screen shot of Chart of
Account with Cash Account setting in SAP B1.

1.1.5 Overpayment A/R Account, Underpayment A/R Account

Define these accounts if you want SAP Business One to handle cases in which the incoming payment amount is slightly different
from the A/R invoice(s) amount paid. SAP Business One compares the amount paid to the amount due, and if the difference is
less than the amount defined in the Incoming Amt. Diff. Allowed or Incoming % Diff. Allowed field of the Currencies - Setup
window under Administration Setup Financials Currencies, the application automatically creates the appropriate
transaction

1.1.6 Down Payment Clearing Account

When a company receives or makes a down payment, the payment amount is recorded in an interim account before it’s
deducted from the final transaction. For period end auditing purposes, the transactions that make up the value of the interim
accounts must be easily auditable.
In SAP Business One, postings are made to the following two interim accounts in the down payment process:
 Down payment clearing account
 Down payment interim account
The postings to these two accounts are automatically reconciled as follows:
 Down Payment Request Process
When you create a payment for an A/R or A/P down payment request, the down payment interim account is debited or
credited with the payment amount, and the down payment clearing account is credited or debited with the payment
amount excluding tax.
When you fully or partially draw the down payment to the final A/R or A/P invoice, the down payment interim account is
credited or debited with the drawn amount, and the down payment clearing account is debited or credited with the drawn
amount excluding tax.
As a result, the postings to the down payment interim account and the down payment clearing account are fully or partially
reconciled accordingly.
 Down Payment Invoice Process
When you create a full or partial payment for an A/R or A/P down payment invoice, the down payment clearing account is
credited or debited with the invoice amount excluding tax.
When you fully or partially draw the down payment to the final A/R or A/P invoice, the down payment clearing account is
debited or credited with the drawn amount excluding tax.
As a result, the postings to the down payment clearing account are fully or partially reconciled accordingly.
In the above two processes, if the final A/R or A/P invoice is then fully or partially drawn to a credit memo, the postings to the
two accounts generated by the A/R or A/P invoice are proportionately reversed and reconciled.
However, if either of the two accounts has been fully, manually reconciled before the automatic system reconciliation takes
place, SAP Business One does not perform the system reconciliation.

1.1.7 Realized Exchange Diff. Gain, Realized Exchange Diff. Loss

Select accounts to be used as default accounts for journal entries created to reflect loss and gain caused by exchange rate
differences.

1.1.8 Cash Discount

Define an account to be used as the default when a cash discount is used.

1.1.9 Revenue Account & Sales Credit Account

Select a control account (Revenue Account) to be used as the default when a transaction of revenues is posted, for example, an
A/R invoice.
Select a control account (Sales Credit Account) to be used as the default when a credit transaction of revenue is created, for
example, an A/R credit memo.

1.1.10 Dunning Interest & Dunning Fees

Define the account (Dunning Interest) for posting interest on overdue amounts included in a dunning letter.

Define the account (Dunning Fees) for posting fees that are charged in a dunning letter.

1.2 Purchase Tab

1.2.1 Domestic Accounts Payable & Foreign Accounts Payable

Define the respective accounts for posting purchases to domestic, EU, or other foreign vendors. SAP Business One posts all
purchases from vendors to this collective account, making your current total purchases available at any time.

1.2.2 Realized Exchange Diff. Gain, Realized Exchange Diff. Loss

Select accounts to use as default accounts for journal entries created to reflect loss and gain caused by exchange rate
differences in purchase transactions.

1.2.3 Bank Transfer

Define a default account to use when paying by bank transfer.

1.2.4 Cash Discount

Define an account to use as default when a cash discount is used.

1.2.5 Cash Discount Clearing

Define an account to use as the clearing account when a cash discount is used.

1.2.6 Expense Account

Define accounts to use as default expense accounts.

1.2.7 Purchase Credit Account

Select a control account to use as the default when a credit transaction for purchasing is created, for example, an
A/P credit memo.

1.2.8 Overpayment A/P Account, Underpayment A/P Account

Define these accounts if you want SAP Business One to handle cases in which the outgoing payment amount is
slightly different from the A/P invoice(s) amount paid.

SAP Business One compares the amount paid to the amount due, and if the difference is less than the amount
defined in the Outgoing Amt. Diff. Allowed or Outgoing % Diff. Allowed field of the Currencies - Setup window under
Administration Setup Financials Currencies, the application automatically creates the appropriate transaction.

1.2.9 Down Payment Clearing Account

Select a G/L account to use as the default clearing account when adding an A/P down payment invoice. You cannot
select G/L accounts defined as control accounts.
1.3 General Tab

1.3.1 Credit Card Deposit Fee

Define an account for posting the fee for deposit of credit card vouchers.

1.3.2 Rounding Account

Select a default account to use in journal entries created for rounding differences. This may occur when you define rounding for
certain currencies.

1.3.3 Reconciliation Difference

Determines the account to use for the Automatic Balancing Transaction in Automatic Reconciliation.

1.3.4 Period-End Closing Account

Define an account to use when performing a period-end closing process.

1.3.5 Realized Exchange Diff. Gain

When reconciling transactions of foreign currency G/L accounts, an exchange rate differences transaction is performed
automatically. Define here the account to which the gained exchange rate difference is posted.

1.3.6 Realized Exchange Diff. Loss

When reconciling transactions of foreign currency G/L accounts, an exchange rate differences transaction is performed
automatically. Define here the account to which the lost exchange rate difference is posted.
1.3.7 Bank Charges Account

Specify a default account for bank charges posting.