General ledger Posting – Recurring and Provision Entries in SAP

Normal general ledger transactions are entered into SAP by using transactions code FB50. Transactions of recurring nature are posted using transactions code F.14. Entries of accrual and deferral will be posted through transaction code FBS1 and these entries get reversed by transaction code F.81 in general ledger accounting.

All these recurring and provision transactions mentioned above can get reversed by using transaction code FB08. A document can be parked for future posting by using transaction code F-65. The parked document can get deleted through transaction code FBV0.

A document can have 999 lines. Below you will know what is recurring and provision entry in sap.

General ledger Posting - Recurring and Provision Entries in SAP

What is Recurring entries in General Ledger

Recurring entry functionality in SAP can be used to post entries that are posted periodically with certain frequency and without any change in a particular year, e.g. rent payable, hire charges payable etc.

Inputs

To pass a recurring entry in SAP’s general ledger module, you are required to have following inputs to recognize the transaction.

  • Identification of nature of entries amenable to recurring entries
  • Creation of a recurring entry document using Transaction Code FBD1

A reference document for a recurring entry in sap will be created with details of first and last posting, the frequency at which posting should be made, and the date of the next planned posting.

SAPF120 program uses recurring entry documents to create accounting document in SAP. Once the program starts at a regular interval it will check the recurring entry document to know whether a document needs to be created or not. In each run SAP creates only one accounting document.

On due dates, using Transaction F.14 all recurring entries due for the selected period are get posted automatically. To see the list of recurring entry you can use transaction code F.15 in SAP. You can reverse a recurring entry in general ledger accounting by using t code FB08 and F.80

Provision entries and reversals in General Ledger

Company creates provisional entries to book those expenses which are incurred but not paid and it is due during that month. To understand how provisions are created in sap let us take an example of rent.

Business are paying rent for every month in the following month. For example march month rents are paid in april. while closing your books of account on 31st march you have not accounted march month rental expenses as it has not paid by 31st march. To match expenses with revenue we have to account rent for the month of march as its already incurred by the company. To do that we create provision entry. In this case to account rent as expenses following entry can be passed in general ledger;

Rent A/c Dr

To Provision for rent A/c or Rent payable A/c

Provisions by the company are made through Journal vouchers using the document type “AP”  and Transaction code FBS1. On or after the due date for reversal the company by using transaction code F.81 reverse the provision.

Relevant Transaction Codes required in General Ledger

A document can be displayed by using transaction code – FB03

Displaying line items – FAGLL03

General Ledger Account Balance – S_PL0_86000030

Account Line Item Analysis – FBL3N

General Ledger Manual Account Clearing – F-03

General Ledger Account Clearing – F-04

General Ledger Account Automatic Clearing – F.13

General Ledger Reset Cleared Items – FBRA

Foreign Currency Valuation  – F.05

Carry Forward Receivables/Payables – F.07

Balance carry forward of GL Accounts – F.16

GR_IR Regrouping – F.19

CO reconciliation with FI – KALC

GR / IR Clearing Account Maintenance – MR11

Open and Close Posting Periods – S_ALR_87003642

General Ledger Document Change – FB02

General Ledger Document Display – FB02

Individual Document Reversal – FB08

Post General Ledger Document – FB50

Posting with Reference Document – FBR2

Financial Statements & Trial Balance – S_ALR_87012284

Compact Document Journal – S_ALR_87012289

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