Create Additional Account Definition – A summary of the activity

This activity allows you to create the additional account definition. This would include account definition for inter finance book, Inter Company, Consolidation contra and Usage based accounts. This activity also allows you to create the additional account for the user-defined usages and predefined usages. This activity allows you to define the attributes of the usage, which will be captured in the transaction screen.

All transactions other than for which accounts are defined for specific entities like Supplier, Bank Cash, Customer etc are handled by ARD under the Additional Account Definition. These accounts can be classified into the following categories.

Predefined Usage based Additional accounts

Accounts for usages that are predefined by the system are defined through Additional account definition with Usage Type as ‘Predefined’. Accounts are defined for FB, Usage and other parameter (like currency, destination FB) combination.

Some of the examples for these kinds of transactions are Inter FB accounts, Inter company accounts, consolidation contra accounts, and Exchange rate variance accounts. Multiple accounts may exist for these predefined usages based on some parameter. For example, Inter FB accounts will be different for each combination of source FB and destination FB.

User defined Usage based accounts

Accounts for user-defined usages are defined in this activity with usage type as “User-Defined”. Accounts are defined for FB, Event (can be defined for ALL events also), Usage and Currency.

Some of the examples for these kinds of transactions are Travel, Purchases of Stationery, etc.

Predefined Usage based Default account

The accounts are defined as automatic posting type in the “Accounting Setup” business component. These accounts are stored with predefined usage on mapping to the finance book in this business component. Therefore the accounts for the predefined usage are created in this business component. Some examples of auto posting type are FA suspense account, stock suspense, rounding off account etc.

This activity also allows you to view the additional account definition and the default accounts.

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