AR & AP Regrouping in SAP (S/4 HANA Finance)

# Purpose of The Article

This article will be covering:

• Definition of Regrouping
• Configuration in SAP for Regrouping
• Execution of Regrouping Transaction

# What is Regrouping

While preparing Financial Statements we need to present debit balance on vendor as receivable and credit balance on customer as payable.

# Regrouping Functionality in SAP

Regrouping functionality available in SAP. This functionality can be used with minimum configuration. Required adjustment postings are happened on the last date of the period and gets reversed on the very first day of the next day.

# Regrouping Configuration

1. Valuation Area is required for that Valuation method is also required.

Path: Financial Accounting (New)- General Ledger Accounting (New)- Periodic Processing-Valuate-Define Valuation Methods

2. Define Valuation Areas

Path: Same as above

3. Define Sort Method and Adjustment Accts for Regrouping Receivables/Payables

Path: Financial Accounting (New)- General Ledger Accounting (New)- Periodic Processing- Reclassify- Transfer and Sort Receivables and Payables- Define Sort Method and Adjustment Accts for Regrouping Receivables/Payables

Receivable (Folder)

Account (Click)

Reconciliation GL: Transaction (assigned in customer) GL which need to be regrouped.

Adjustment Account: GL which will nullify Reconciliation GL (assigned in customer)

Target Account: GL which will replace Reconciliation GL Balance (assigned in customer)

Payable (Folder)

Accounts (Click)

Reconciliation GL: Transaction (assigned in vendor) GL which need to be regrouped.

Adjustment Account: GL which will nullify Reconciliation GL (assigned in vendor)

Target Account: GL which will replace Reconciliation GL Balance (assigned in vendor)

# Regrouping Execution – FAGLF101

Click – Execute

Click Posting

Key Points to Remember:

1. It will consider only open items
2. It will check on consolidated level of customer and vendor; whether Debit/Credit accordingly it will post to Receivable or Payable. Consolidation on Normal GL and Special GL level.
3. It can be run for Customer, Vendor, and GL
4. It will not post to a reconciliation and open item managed GLs.
5. It will post entries and reverse at the same time. E.g. Post 31.01.2018 and Reverse 01.02.2018

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