Posting Logic During Migration Of G/L Account Balances & Open Item Payable Migration
Migration of G/L account balances enables you to migrate all general ledger account balances of a company. You can migrate account balances for multiple accounts at the same time.
The system automatically creates one journal entry per balance, and an offsetting entry, so that the overall balance is zero.
Note: The Offsetting G/L account is always – Initial data carry-forward account for fixed assets, exclusive for migration purpose only.
But what if you try to enter the G/L Account which belong to other sub=ledger in G/L Account Balances Migration ? ( For explanation purpose we considered the G/L Account Migration & Open item Payable here )
This account belongs to AP
And you entered the same unknowingly
The message says that G/L 200000 is replaced by migration clearing account 990010 – Initial Data Carry-forward AP Account and this is done as per the posting logic
If you migrate G/L account balances and you include a G/L account which belong to the above, the amounts are posted on the G/L accounts of the corresponding sub ledgers as well. This way, the same amount would be posted twice on a G/L account and to avoid this the G/L account that you enter is automatically forwarded to migration clearing accounts.
For AP the migration clearing account is 990010 – Initial Data Carry-forward AP Account
You may have noticed this or not but if you proceed further and complete the G/L Migration the end result of the posting may something look like the below screenshot.
1.If you refer to the data that you entered, it is GL 200000 but here you see GL 990010 and this done as per the posting logic posting to the migration clearing account of AP
2.For all the G/L Migration the offsetting entry is always Initial Data Carry-forward Asset Account only ( this is only migration purpose )
Now if you further proceed with Open item Payable Migration which may result in posting to G/L 200000 due to the account determination of the supplier used in the migration
Now if you compare the both the posting, having this posting logic not in place, you would end up posting double the amount and the Outstanding balances on the G/L 200000 would have been -2000 but system did not do it and avoided this duplicate posting.
Now refer to this below screenshot which shows the exact posting logic which we can see in the above postings.
You can see this same screenshot in help document – Configuration: Migration of G/L Account Balances
Furthermore to explain, With the G/L Account migration directly posting the amount to G/L 200000 on the credit side of G/L Account for domestic payable is wrong, instead it needs to be posting to Migration clearing account for payable, which is right and we can see the same behavior in our postings as well.
Whenever such posting occurs the balances of the Migration Clearing account for payable will be nullified, as you can see in G/L Migration this account is posting to credit and in the AP migration it is debited resulting which there is no balance in this account.
Further more the same posting logic applies for the following migration activities:
- Migration of Fixed Assets
- Migration of Inventory
- Migration of Open Items Receivable
- Migration of Balances for Bank Accounts
- Migration of Open Outgoing Checks
- Migration of Open Goods Receipts
- Migration of Bills of Exchange Payables
- Migration of Bills of Exchange Receivables
When you migrate these objects, the amounts are posted on the G/L accounts of the corresponding sub-ledgers,To avoid this, the G/L accounts (that you assigned to the corresponding G/L account in the SAP Business solution) are forwarded automatically to migration clearing accounts for instance for payable it is Initial data carry-forward A/P Account.
Thank you for the good overview!
Regarding the mentioned Offsetting G/L account, it might be interesting to add, that you can actually choose which account you want to use here. During migration of G/L account balances, in step “Convert Values”, open “Edit Value Conversion for G/L Account”.
In the value conversion list you will see the value conversions for all G/L account entries in your template - plus one additional entry for a source value named ”SAKOMIG“. The conversion target value for this entry is the account that is used as Offsetting G/L Account.
It is already defaulted, with a value depending on your Chart of Accounts. In the sample used by Lokesh this is “Initial data carry-forward account for fixed assets”. You can of course use the value help to choose a different target value. In the screenshot below, which comes from another sample case, I would prefer to use 990000 “Balance Carryforward G/L Accounts”.
Especially if you are migrating Fixed Asset subledger data as well, then t is recommended to make use of this possibility. (Be aware that the very first time you entering the migration of G/L accounts, the value conversion for “SAKOMIG” is not visible. To make it visible, just run the step simulation for just any G/L account balances template once. )
P.S: In that context it might be interesting to know where the corresponding migration offsetting accounts for the different subledger objects (Open items, fixed assets, inventories,…) are being set. For these settings, in the workcenter “Business Configuration” in the implementation activity list open the activity “Chart of Accounts, Financial Reporting Structures, Account Detearmination”, there the subtask “Account Determination: Data Migration”
Here you see the defaults for the migration offsetting postings of the subledger objects.
Where do we set offsetting G/L accounts in BYD?
Go to the Fine-tune Activity > Chart of Accounts, Financial Reporting structure, Account Determination
In this activity > click on Account Determination then you select Data Migration as shown in the above screenshot.
Thank you. problem solved !
I do have a question regarding migration of Sales Tax Payable (GL Account Posting Block – Only automatic postings allowed) – whether we need to post the Manual Journal Entry Voucher in order to remove the amount from Migration Clearing account and move it to Sales Tax Payable GL?
Would appreciate your time if you provide the steps that need to followed.
Note : In the Balance Sheet the amount is shown in the Migration Clearing Account.
Thanks for a very good blog. Do you know what would we do in order to migrate historical G/L Balance (posting date before the initial migration date?) for customer reporting purpose?
Currently, I get this error message trying to do this.
For a chosen key date(migration date) you need to bring the data and posting date cannot be before to the migration date.
Is it possible to include cost object for the offsetting G/L accounts.
Or is there separate template in LTMC for posting journal transactions
Great blog post!
How do you clear migration accounts at the end? All the accounts and balances have been brought over but now there's a balance in the migration account? Does not clearing it negate the effects of bringing in your balance sheet? Currently, it's part of the Balance Sheet such that it is balanced. If you clear it, what do you clear it to? If you don't clear it but don't report it then the Balance Sheet doesn't balance??
Any help is appreciated. Thanks