This Clearing functions are used to clear the outstanding entries in the general ledger accounts. Example: outstanding amounts in expenses payable and income receivable accounts. To clear the amounts we can do three types of clearing functions.
1. Standard clearing functions
2. Partial clearing functions
3. Residual clearing functions
To do the residual clearing we have to define reason codes and accounts for clearing difference account while doing the clearing functions we can select the additional selections to make the payments.
If you want to make the payment document number we can select this option and give the Document from number and to number to clear the items. Other wise if you want to make the Payment basing on the option of dunning area wise we can make the payment like that.
We can see the other accounts of the same customer/or vendor by selecting the particular option. Refer the items with Special GL heads also can be viewed from this screen.
The clearing functions are one of the excellent functionality in SAP environment.
The main difference between the partial clearing and the residual clearing is the former one display the original open item amount and partial payments as open items until the account is settled in full.
Clearing Functions in SAP
The final settlement will convert all the entries as cleared item. In case of the latter one, the clears the original open item as cleared item and creates a new open item with the residual amount. If you mention the reason code in residual clearing functions the residual amount automatically posted to Payment diff ac (automatic determination should have been done in the chart of account level). If no Reason code is assigned it will credit/debit to the same account.
Automatic Clearing Functions
This is one of the functionality used to clear the accounts with open and clear items. And further used group the open items basing on some criteria and clears them according to the criteria.
Prepare Automatic clearing: Menu: financial accounting-general ledger accounting-business transactions-open item clearing-prepare automatic clearing: TC: OB74.
- Click on new entries button
- Give chart of accounts :2006
- Give account type:K,D,S
- Give the account numbers from number and to number
- Give the clearing criterion or group criterion and save the data.
- Post the transaction in open item accounts. And clear it with partial clearing option. There by both the items appear as open items. Now execute the
Automatic clearing Programe as under as per below,
Accounting-financial accounting-general ledger-automatic clearing- F-13 automatic clearing with or without specifying the currency.
Give the details and select the accounts for executing the programe:
It automatically clears the open items. This program is useful for clearing the open items with automatic posting transactions.i.e. GR/IR clearing account.
This program is used to clear the account with huge volume of accounts with numerous line items either on line or as background processing as batch input. And further it is useful clear the gl accounts with post automatically option is set. The individual accounts will be cleared by manual clearing of an account in F-03 clear functionality.
The automatic clearing functions are quiet different form the automatic payment program used in accounts receivable and accounts payable component. The Automatic payment program is defined to clear the open items in customer and vendor accounts, and post the entries in bank accounting and issues the cheques for paid amounts simultaneously.
Automatic clearing functions are simply to clear the open items basing on the grouping criterion.
Also See: Foreign Currency Valuation
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