Why does BPC incomes have negative sign and expenses positive?

[mrj_marcelo]

Hi, I have just a little conceptual doubt: why does incomes (INC acc. type) have negative sign and expenses (EXP acc. type) have positive as default in BPC, since incomes are earnings and expenses losses. When I take a look for example in BPC for assets (AST acc. type) and liabilities and equities (LEQ acc. type), assets have positive and liabilities and equities have negative sign as default, it makes sense, since assets belongs to company and company owes liabilities and equities to others, but for incomes and expenses BPC use reverse logics to define sign of incomes and expesnes, why?

Tanks and best regards.

[N1kh1l · Accepted solution]

mrj.marcelo

The signs are not decided based on what the company owns or owes. Although it looks like it in case of Assets and liability ( balance Sheet accounts). The below blog will help you understand the different BPC Account Types and signage.

https://blogs.sap.com/2012/04/17/bpc-acctype-what-is-ast-leq-inc-and-exp-what-account-type-sould-be-...

1. For Account Types LEQ and INC: BPC will send data into database and retrieve data via an input schedules/reports with reversing the signed data value (+/-).
2. For Account Types AST and EXP: BPC will send data into database and retrieve data via an input schedules/reports without a change in the signed data value (+/-).

Example:

Br.

Nikhil

[mrj_marcelo · Accepted solution]

Great explanation, bro. Thanks so much and God bless you.