Accounts Payable Control Accounts Edit MGAD

Use the Accounts Payable Control Accounts screen MGAD to identify the General Ledger control account for items such as Accounts Payable liability, bank service charges and prepayments. You must enter a control accounts code when setting up the Accounts Payable company controls. Enter a control account code on the Supplier Accounts Payable Controls screen MPBE.

You can purge the control account code. Purging the control account code marks the code for deletion. You must submit the Deferred Purge process, ZA1, to physically delete the code from the database. Refer to Deferred Purge for more information.

To Add an Accounts Payable Control Account

1. Enter Company, if different to the default, in the selection window and click Edit | Insert from the pull-down menu.

2. Enter the following fields on the Accounts Payable Control Accounts screen MGAD:

1. Enter the two-character Control Accounts Code that identifies the group of General Ledger controlling accounts entered on this screen.

2. Enter the Accounts Code Description of the set of control accounts, up to 40 characters.

3. In Creditors Control, enter the company's Accounts Payable liability account. This account receives credits when you enter invoices and receives debits when you pay invoices. You can use multiple liability accounts by setting up multiple control codes.
   
   The liability account displays a summary or total of all transactions in Accounts Payable. You must enter the account segment of a General Ledger account code. The system may require management codes based on how the account is set up.

4. In Discount Receivable, enter the General Ledger account for purchase discounts. The system calculates discounts based upon each supplier's parameters. The system credits this account when invoices are paid for the discount taken. You must enter the account segment of a General Ledger account code. The system may require management codes based on how the account is set up

5. In Bank Charges, enter the General Ledger account for payments. You are required to enter the account segment of a General Ledger account code. The system may require management codes based on how the account is set up. 

6. In Tax Suspense, enter the account segment of a General Ledger account code. The offsetting account is the tax account specified on the tax type or tax code. The system may require management codes based on how the account is set up. This field applies primarily to European clients.
   
   The registration option available in Accounts Payable transaction processing lets you accrue tax immediately. Therefore, you can reclaim the tax early. The system credits this account when an invoice is registered and reverses the posting when you enter the invoice in detail.

7. In Prepayments, enter the asset account. You must enter the account segment of a General Ledger account code. The system may require management codes based on how the account is set up.
   
   Prepayments provide a method of paying an invoice in full and deferring the expense over the consecutive General Ledger periods to which it applies. For example, if you purchase £12,000 in insurance for a period of three months, the system posts only £4,000 to the General Ledger account code from the invoice line in the first period of the prepayment. The balance of £8,000 is stored in the prepayments account. The prepayments account is credited for £4,000 in the following two periods, with the debit of £4,000 being charged to the General Ledger account from the invoice line.

8. In Detail Variance, enter the account segment of a General Ledger account code. The system posts variances, if acceptable, to the account you enter in this field. The system may require management codes based on how the account is set up. If flagging line items as tax inclusive, system rounding can cause variances. When this happens, the detail lines entered cannot correctly match the document total.

9. In Service Ledger Accruals enter the service ledger accrual account. The system may require management codes depending upon how the account is set up.

10. In Service Ledger Deferrals enter the General Ledger account code to which any deferrals generated through the use of Service ledger should be posted.

11. In AP/AR Netting Off Offset enter the General Ledger account code to which postings from AP/AR Netting off transactions should be generated.

3. Click the Update button to add the control account.

See also

Accounts Payable Control Accounts List MGAC

Accounts Payable Home Page