Wednesday, July 30, 2008

Reason Codes in SAP FICO

To use the clearing document to find out why a difference existed, you have to assign reason codes to the line items. Using a key, you can define various reason codes in Customizing.

You can assign reason codes to:

  • Partial payments made for open items.
  • Residual items created for an open item. You can assign one or more reason codes if you split up the outstanding difference into several portions.
  • Differences posted on account without making a reference to an open item.
  • Each line item you enter in clearing open items, if the reason code field for the account is ready for input.

When you create residual items, the reason code also controls how the remaining amount is posted. The remaining amount can be posted to:

  • The G/L account that is assigned to the reason code you enter.
  • The customer or vendor account as a new open item if you do not enter a reason code or if the reason code you enter requires this.

Other features of reason codes:

  • You can have the system create a payment notice for a customer if differences occur when clearing open items with incoming payments. You can determine what type of notice to create for partial payments, residual items, and payments on account in the tolerance group set up for the customer.
  • The system can use the specified reason code to determine the type of notice to create as long as only one reason code is specified in the entire clearing procedure.
  • When checking the credit limit of a customer, the total of the open items is one of the items checked. You can exclude disputed items from credit limit checks by assigning them a reason code.

Reason codes determine:

  • How the difference is posted (as a new open item or to a predefined G/L account)
  • What type of payment notice is created
  • Whether an item is included in credit limit checks

· To define reason codes, see the following activities in Customizing for Accounts Payable and Accounts Receivable:

- Define reason codes (incoming payment)

- Define reason codes (outgoing payment)

- Define standard reason codes for clearing procedures

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