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Down Payment Receivable control account?

Former Member
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Hi All,

I was hoping someone could help clarify account determination for me.

Currently I have assigned a 'Down payments received clearing account' as a liability account. Is this correct?

Then If I click the accounts recevable "..." I am presented with the control account selection for "Open Debts" and "Down Payment receivables". I have selected this as "Trade Creditors Domestic".

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When taking DP invoice payments I can see that the DP payments received liability account is posted to correctly. When the DP Invoice payment gets applied to the AR invoice, the account is cleared as expected. I think this is correct.

I am however confused as to the control account determination. I dont see any postings made during this process. What should I see?

Many thanks.

John

Edited by: Jantzman on Jul 26, 2010 4:06 AM

Sorry... I clicked post before I as ready .. oops.

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zal_parchem2
Active Contributor
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Hello John...

I am not sure what the Accounting Standards are where you are located, but generally a payment is not defined in the Liability Drawer, but in the Asset Drawer (because you are bringing in an asset of Cash - the so-called above posting). Of course, the company has to really define that...it is only a temporary holding account from "Down Payments Received" to permanent "Cash" account ...

I would suggest that you speak directly with the Finance folks of the company you are working with. Folks in the forum will give you the correct answer as they understand it, but in financial postings the "correct answer" can vary so widely. The only people who know how their individual books and related transactions work are the accounting/financial folks. And some times they even have some differing opinions. During the Blue Print Phase of Implementation I always sit in on the discussions to explain how SAP B1 works and we use the old school T accounts to walk through each scenario. But the accountants/financial personnel are the ones who have the final say, because they are the ones who will be living with it for years to come.

Regards,

Zal