Answer / srikanth

special gl transactions are the transactions like down
payment requests, bill of exchange , guarantees received
and made etc.

Answer / krishna

Special GL transactions are those transactions other than
the regular transactions in AR and AP. For Ex: Down Payments
( Made r Received)
These transactions will be identified through a special
indicater. For Ex. For Down Payment request F
Down Payment A
Bills of Exchange W
Mainly we use this Special Gl s for identifying easily and
for clear information vail preparing B/S Becoz advances
paid will be considered as Asset Currents in B/S .in the
same manner advances Received.

Answer / geevidhyadhar

Let us take up a NORMAL TRANSACTION ( relating to a sale
made to customer ) to understand what a SPECIAL GL
TRANSACTION and how it differs from a normal transaction.

NORMAL TRANSACTION explained in sequential order:

1. SALE TO CUSTOMER for US$100:

Customer Account Debit 100US$
(Individual Customer Account affected in Sub ledger and
Customer Reconciliation Account debited in GL)

Let us also remember that Customer Account is a CURRENT
ASSET in the Balance sheet (viz. money due to us pending
receipt from customer )

Sales Account Credit 100US$ (Sales Account affected in GL)



2. RECEIPT OF PAYMENT FROM CUSTOMER for 100US$

Bank account Debit 100US$ (Bank account affected in GL)

Customer Account Credit 100US$
(Individual Customer Account affected in Sub ledger and
Customer Reconciliation Account credited in GL)

The entire NORMAL transaction stands cleared. Please pay
special attention to the sequential order of events
mentioned above.

Now let us consider the following Scenario:

The customer makes a DOWNPAYMENT even before we make a Sale.

We raise our Sale invoice subsequently.

Here the sequential order of events is the other way around
though the transaction pertains to a customer sale and
collection of payment from him / her.

If downpayment has been received from a customer and we are
yet to raise our Sale invoice, then the downpayment is a
CURRENT LIABILITY to our Customer on our part even though
customers are listed as current assets in the Balance Sheet.

Such Exceptional treatment is handled using an alternative
Reconciliation Account in the GL.

Let us journalize the SPECIAL GL TRANSACTION now:

3. RECEIPT OF DOWNPAYMENT FROM CUSTOMER US$100

BANK Account Debit US$100 (Bank account affected in GL)

Cutomer Account CREDIT US$100
(Individual Customer Account affected in Sub ledger and
a SPECIAL Customer Reconciliation Account debited in GL.
Please note that this reconciliation account would be
Listed as a Liability in the GL).


4. SALE TO CUSTOMER for US$100:

Customer Account Debit 100US$
(Individual Customer Account affected in Sub ledger and
NORMAL Customer Reconciliation Account debited in GL)

Sales Account Credit 100US$ (Sales Account affected in GL)

Please pay special attention to the sequential order of
events mentioned above.

While comparing transactions 3 and 4, we see that there is
an unadjusted debit in a NORMAL reconciliation account and
an anadjusted credit in a SPECIAL Reconciliation Account.
However, the sale as well as collection of payment stand
accounted. The only extra thing that we see is a customer
debit and customer credit remaining unadjusted in two
different reconciliation accounts ( a normal reconciliation
account as a current asset and a special reconciliation
account as a liability- both in the GL). This is reversed
by using the option downpayment clearing.

In general, any transaction which uses a different
sequential order of events is treated as a SPECIAL GL
TRANSACTION by creating ADDITIONAL RECONCILIATION ACCOUNTS
IN THE GL. This principle applies to Vendor related
transactions also.

Of course, there are a few other such transactions ( such
as downpayment requests, guarantee commitments etc. ) which
also happen using additional reconciliation accounts in the
GL but such transactions would not have any accounting
significance (BALANCE SHEET and PROFIT AND LOSS ACCOUNT DO
NOT get updated). They are for information purposes only
usually appearing as notes to balance sheet or serve as
mere reminders.

Please feel free to correct me if my understanding of
Special GL Transaction is ambiguous.

Thanks

VidhyaDhar

Answer / geevidhyadhar

Hi Suresh

Please read special G L transactions as Special
Transactions in the General Ledger. There are are a wide
variety of such special transactions:

a. Down Payments where payment (money flow) precedes
invoicing
b. Requests and reminders relating to Down Payments
c. Bills of Exchange where the actual receivable / payable
is reported as Bills Receivable / Bills Payable
d. Requests and reminders relating to Bills of Exchange
e. Individual value adjustments ( known as Reserve for bad
debts in India)
f. Many other transactions such as Refundable deposits,
gurantees, other notional transactions for tracking
purposes etc.

Some of these transactions do not have an accounting
impact. Some others are listed as notes to financial
statements. Some others ( downpayments) etc are grouped
differently in financial statements for reporting purposes.

Special G L transactions are configured with special
posting keys such as 09, 19 ( for customers) and 29 and 39
( for vendors ) and unique single character special G L
indicators. These transactions post to alternative
reconcilation accounts in the General Ledger which are used
for reporting purposes.

Regards

geeVidhyaDhar

Answer / sree

Special GL Indicator is used to identify the advance
payments while booking an invoice.

Ex: we paid $100 advace to the vendor, one we pass the
purchase invoice it gives the message $100 was paid as
advance.

This is the use of Special GL transaction, Please correct
me if i am wrong

Answer / suresh

Hi Geevidhyadhar

IS it possible for you to explain me the detail when we
are using the other Special GLs like the ones you have
mentioned above...

Answer / amarnath.n

those transactions other than
GL, AP, AR is called Special GL transactions.
ex:bill of exchange , guarantees received
and made etc.

Answer / ceecil1959

Special GL transactions are not directly posted to the GL account even though these are related to the vendor or customer sub ledger accounts. These transactions are shown separately in the balance sheet.

There are special posting keys/indicators defined in the system to regulate the postings. Special GL transactions are not directly posted to the GL account even though these are related to the vendor or customer sub ledger accounts. These transactions are shown separately in the balance sheet. There are special posting keys/indicators defined in the system to regulate the postings

Answer / ranjith

hi,
The answer,which has given by Krishan is exactly right..

Thank u

Answer / pramod

special g/l transactions are multi-step transactions which,for reporting purposes,the system will post a g/l reconciliation account other than that defined in the customer or vendor master record by using special g/l indicator

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