changing account type from other to expenditure

[Former Member]

Dear all,

I just need the advise and suggestion on consequences if I change the Account type from Other to Expenditure?

Problem is that I have some expense accounts set as Other and in SBO2005 after creating the AP document on JE I had the profit centers, but after migration to SBO2007 it is not the case any more. answer from SAP is that profit center from document will be copied to JE only if the account type is Sales or Expenditure.

If I try to do that system allows me to do it but with the warning that I made the postings on that account.

I am aware that I cannot correct the documents already posted in the system but I want to correct that for future time.

I would appreciate some experience and explanation what could be consequence if just change that account type.

thank you in advance

best regards

Zeljan

[Former Member]

Thank you Heather and Gordon for your help. As it is almost end of the year, we will do it on January 1st and probably with the new accounts.

thanks again

best regards

[Former Member]

Dear Zeljan,

You are able to change account type from other to expenditure. System will give you a warning message if you have posted transactions.

You must know the consequence before update the type. Unless you changed it in the beginning of your fiscal year, the balance sheet and P&L will be a mess somewhat.

Thanks,

Gordon

[Former Member]

Dear Gordon,

OK, this could be a mess, but what exactly, how can I check, is there something I can do to correct it if I do not wait for the change of the fiscal year?

thank you

best regards

[Former Member]

You can go ahead and change. Leave all the mess to YEC process. It would be not clean anyway.

[Former Member]

Hi Gordon,

you are right it will be a mess during the YEC, but the problem is that they will again call me.

Just to try to understand the deeper impact... account type influence on what?

Now I know that it influence the JE's and copying the profit center and grouping on profit center or not... but what else? Is there something else I need to focus?

Just one remark, my COA is not changed nor the account determination on Item group level (I have GL determination by Item Group).

thank you

best regards

[Former Member]

Other accounts will be for Balance Sheet. Expenditure will be for P&L. They will not have a clear line for both statements.

[Former Member]

Hi,

Can you make the current GL inactive and create a new expense GL instead? That way you won't have any overlap in how the same GL was/is used. Also easier if you use a defined date that is easy to note/remember, such as first of the month or quarter, if they can't wait until new fiscal year.

What I did in our setup was have an Activity Type for GL setup changes that would track any changes made mid-year as a reference for the Finance Dept. that included date of the change and details.

Heather

[Former Member]

I agree with Heather. This way will be much more clean.