SAP Regrouping Receivables Payables

Advertisement

SAP Regrouping Receivables PayablesAs part of an organization’s SAP Financial Accounting closing process, there are two requirements to regroup accounts receivables (AR) and accounts payables (AP). The first requirement is to show receivables with a credit balance as payables and payables with a debit balance as receivables. The second requirement is to sort items based on remaining terms for balance sheet reporting. SAP has provided functionality to accommodate both requirements using report FAGL_CL_REGROUP. This tutorial will examine the basic configuration needed for SAP Regrouping Receivables Payables process as well as look at an example of the report execution to sort items and process transfer postings.

SAP Regrouping Configuration

To use report FAGL_CL_REGROUP, also called the regrouping program, you must first define a sort method interval in customizing. Here you will create the sort method that will be used as the basis for executing the report along with its associated value keys. You will then define the reconciliation accounts to be selected, along with the adjustment account that will posted to and the transfer account used for the offset.

Advertisement

To view the configuration for sort method intervals, use transaction code OBBU or the following menu path.

SPRO > SAP Reference IMG > Financial Accounting (New) > General Ledger Accounting (New) > Periodic Processing > Reclassify > Transfer and Sort Receivables and Payables > Define Sort Methods and Adjustment Accts for Regrouping Receivables/Payables

Sort Method Intervals for SAP AP AR Regrouping
Sort Method Intervals for SAP AP AR Regrouping

To take a look at one of the existing intervals, place your cursor on one of the existing sort methods to highlight the row and then double click on the receivables folder on the left. In this example, we will look at the sort method interval SAP. After opening the Receivables folder, you will come to the following screen.

Receivables Folder in Sort Method Interval
Receivables Folder in Sort Method Interval

Here the configuration contains two account determination keys set up for this particular sort method. If you scroll a bit to the right, you’ll see the values (V00 and V01).

Sort Method Account Determination Keys
Sort Method Account Determination Keys

These keys represent time intervals for the sort method, the type of postings will be selected, and how they will be managed. They also are linked to the specific G/L accounts to be considered during processing.

Advertisement

The first key within the receivables folder, V00, is defined for customer postings, vendor postings, and G/L account postings with a receivable due date less than or equal to one year. The second key, V01, is for the same posting types but for items with a remaining due date of greater than a year.

Now, click on the Account button for the first account key. You will be asked for chart of accounts. Enter the chart you are working with. This example looks at the INT chart of accounts.

Account Selection within Account Determination Key of Sort Method
Account Selection within Account Determination Key of Sort Method

Here you will see a list of accounts used for the key.

Automatic Postings for Account Determination Keys for Receivables
Automatic Postings for Account Determination Keys for Receivables

The left column is for reconciliation accounts that will be selected and considered for sorting and grouping. The middle column is for the adjustment account that will be posted to. The right column is for the target account in which the offset posting will occur.

You can now click on the green arrow back and then double click on the Payables folder for the Sort Method.

Payables Folder for Sort Method Interval
Payables Folder for Sort Method Interval

Here we have three account determination keys. The same logic applies here as explained for the Receivables folder. Click on the Accounts button for the first Account Determination key to view the automatic account configuration for V02.

Automatic Postings for Account Determination Keys for Payables
Automatic Postings for Account Determination Keys for Payables

Again, here we see the accounts that will be considered for sorting and grouping with offsetting target accounts.

Advertisement

Remember that this configuration for automatic postings is chart of accounts specific.

SAP Regrouping Processing

Now that you have seen the underlying configuration, we will review the processing of open items with the regrouping report. First, take a look at customer open items using transaction FBL5N for an example customer. In this example, we will use customer 1000 on company code 1000. Look at the open items as of the current date.

Customer Open Items for an Example Customer
Customer Open Items for an Example Customer

There are 12 open items in the list, including special G/L postings.

Now, let’s run the regrouping report. Use transaction code FAGLF101 (or F101 for the classic GL), or use the following menu path.

SAP Easy Access > Accounting > Financial Accounting > Accounts Receivable > Periodic Processing > Closing > Reclassify > Sorting/Reclassification (New)

Advertisement

The screen will appear as follows.

Receivables and Payables Regrouping Report
Receivables and Payables Regrouping Report

Enter the company code, key date (normally this will be a period end date), sort method (we are using SAP here as we reviewed the configuration earlier), and a valuation area for the accounting principle. We are not clicking on Generate Postings at the stage in the tutorial because we are going to run the program and review sorting results before creating a posting session.

Now click on the Selections tab. Enter Account Type D (for customers) and Customer 1000. The screen will appear as follows.

Selections for Regrouping Report
Selections for Regrouping Report

For this example, nothing will be entered in the parameters tab, but you can explore the options available there for grouping, etc. on your own.

Now, execute the report in foreground. The results will appear as follows and should match the open items list for the customer that we viewed earlier. The report in this illustration has been grouped by account and summed on valuated amount.

Analysis of SAP Regrouping Report
Analysis of SAP Regrouping Report

Notice seven items were selected and sorted by Account Determination key that will be applied, per the configuration of the Sort Method Interval SAP, which we used as our selection. This matches our open items report. Notice the reconciliation accounts are contained within the configuration reviewed earlier. Also notice the items list the account determination keys (V00 and V02).

Now, click on the green arrow to go back. Select the Generate postings check box. Notice there is a batch input session default name of FAGL_CL_REGR. This batch input session will be created by the program to contain the postings to process. If you want to post immediately, remove this value. Click on execute when ready to generate postings. After executing, use transaction SM35 to review and process the batch input session.

Batch Input Session Created and Processed
Batch Input Session Created and Processed

Notice there are 14 transactions in the session. Seven for postings, and seven for reversals. This process is intended to post the balance sheet adjustments at period end, then reverse immediately in the following period.

Now, let’s take a look at a couple of the postings generated. Here is an example posting of where automatic account assignment key V00 was applied.

Regrouping Adjustment Using V00
Regrouping Adjustment Using V00

Per the configuration, vendor reconciliation account 140000 was selected which had a debit balance for this item. Adjustment account 140099 was posted to, with the target offset going to 140021.

Now, let’s review an example posting of where automatic account assignment key V02 was applied.

Regrouping Adjustment Using V02
Regrouping Adjustment Using V02

Per the configuration, vendor reconciliation account 170000 was selected which had a credit balance for this item. Adjustment account 140099 was posted to, with the target offset to account 163000.

Now use transaction S_ALR_87012284 to view the effect on the adjustment account in the balance sheet.

Balance Sheet Showing Regrouping Adjustment Account
Balance Sheet Showing Regrouping Adjustment Account

Here we see the total amount reflected as expected in the regrouping adjustment account.

Conclusion

This tutorial reviewed the two purposes of SAP regrouping program, reviewed the basic configuration, and examined sample postings with impacts shown on the financial statement. In addition to what was discussed, keep in mind that if foreign currencies are to be taken into consideration for sorting and regrouping balances, you must first run the foreign currency conversion program prior to regrouping. Also remember that that items are selected by reconciliation account to ensure special G/L entries such as down payments can be reported separately if required.

Did you like this tutorial? Have any questions or comments? We would love to hear your feedback in the comments section below. It’d be a big help for us, and hopefully it’s something we can address for you in improvement of our free SAP FI tutorials.

Navigation Links

Go to next lesson: SAP Accrual Deferral Posting

Go to previous lesson: SAP Value Adjustments

Go to overview of the course: SAP FI Training

4 thoughts on “SAP Regrouping Receivables Payables”

  1. The tutorial was very useful and informative. It covered both the configuration and the process aspects of this functionality.

  2. Hi,
    This explanation is very helpful.
    However, I would like to know what would be the impact of you run FAGLF101 twice on the same period.
    Will it post duplicate entry or reverse the first entry and repost the second run.

    Rona

Leave a Reply

Do you have a question and want it to be answered ASAP? Post it on our FORUM here --> SAP FORUM!

Your email address will not be published. Required fields are marked *