This is to describe how GL accounts and document types are resolved by the system during document posting process.
1. Prerequisites for account determination
a) asset class defined at contract level
b) contract classification at activation group level
c) Account determination key configured at company code level
2. Logic to identify accounts from Account determination key
After all prerequisites are met the system check how many accounting standards are linked to the contract and what is confirmed accounting standard classification.
Based on the current supported functionalities there are to types of accounting standards supported: IAS17/IFRS16 or ASC840/ASC842. Or for simplicity I am calling them “Old” and “New” leasing standard.
the available classification as per the standards mentioned above are:
– IAS17 – Finance and Operating lease;
– IFRS16 – Finance lease;
– ASC840 – Finance and Operating lease;
– ACS842 – Finance and Operating lease.
Also according to the accounting standard requirements asset is recognized only in case of:
– IAS17 – Finance lease
– IFRS16 – Finance lease
– ASC840 – Finance lease
– ACS842 – Finance lease
All of this info is very important in order to understand why the account assignment is working in the current way.
Logic is as follow:
1st the system checks what is the accounting standard and confirmed classification.
2nd the system is looking what is the lease type
3rd the system is checking what is the asset class set at contract level
based on these three the proper account and document type are resolved.