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Chapter 16 ■ Customizing Special G/L Transactions
Guarantees
A bank guarantee is a legally binding document issued by a bank or other financial institution on behalf of
a client to a third party (supplier) to enable the client to obtain goods or services from a supplier on credit
for an agreed time period. A bank guarantee is a type of short-term borrowing. It is a formal assurance by
the bank to make payments to a supplier in an event where the client fails to meet their part of the debt
obligation. Banks normally request some form of collateral or security from their clients before issuing them
a letter of credit in order to safeguard the bank’s assets.
In this activity, you will define guarantees for customers and vendors and walk through the steps
involved in defining accounts for an automatic offsetting entry.
Define Alternative Reconciliation Accounts for Customers
(Guarantees)
Alternative reconciliation accounts for customers are guarantees received from customers as payments
toward services offered or goods delivered at a specific future date. Customizing the alternative
reconciliation accounts will allow you to perform the specifications of the account that guarantees received
are posted.
Problem: It is a mandatory disclosure requirement for company C900 Plc to maintain
separate special G/L accounts where guarantees are posted, instead of to the normal
customer/vendor reconciliation accounts. Your task is to define an alternative
reconciliation account that will enable posting these guarantees to G/L special accounts.
To specify the alternative reconciliation account for customers for posting guarantees, follow this
menu path: IMG: Financial Accounting (New) ➤ Accounts Receivable and Accounts Payable ➤ Business
Transactions ➤ Postings with Alternative Reconciliation Account ➤ Other Special G/L Transactions ➤
Define Alternative Reconciliation Account for Customers. Or use transaction code OBXY.
The Maintain Accounting Configuration: Special G/L – List screen is displayed. Select Guarantee from
the displayed list of items and click the Choose button at the top left to go to the screen where you will
maintain accounting configurations. The Chart of Accounts Entry dialog box pops up. Enter your chart of
accounts (CA90) and click the Enter button. The Maintain Accounting Configuration: Special G/L –
Accounts screen is displayed. Enter G/L account number 119000 in the Reconciliation Account field and
account number 196100 in the Special G/L Account field (Figure 16-11).
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