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Set up pseudo accounts for automatic contra accounting

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The following describes how to set up pseudo accounts for automatic contra accounting purposes. In the previous tasks, default entry panels allowed you to enter the amounts next to defaulted contra accounts. By using the pseudo account code method the system will automatically make the contra entries according to the accounts defined in the Pseudo account file.

Here, you will set up a pseudo account to use for automatic posting of the preliminary cost account when you enter preliminary invoices. This means that the system will create all applicable postings automatically. The preliminary cost account will vary depending on the document type used for entry here.

Note: If the supplier you have entered already has a defined default set up as described in Set up default pseudo accounts through the Business partner file, even though you define the pseudo account code with the pseudo account, you will still receive the default accounts entry panel.

There are two different steps in setting up pseudo accounts for automatic contra accounting. These steps are done through the following:

The pseudo account code consists of two different elements. One which is fixed (mandatory and user-defined) and must always be present. The second element is variable (optional) and is based on a table value. Here, the document type is used.

The user-defined fixed pseudo account part that you enter should determine that whenever any type of preliminary invoice is entered, the contra accounting will be done automatically to the account defined below. If, however, you wish certain types of preliminary transactions to be automatically posted to specific accounts, rather than a broad based account, you can do this by connecting a particular document type as the variable element of the code. See step 4 for additional information.

Pseudo account file

  1. Select the Work with pseudo accounts menu item.
  2. On the main panel, click Add.
  3. You access the detail panel. Complete the following fields:
    4. Pseudo
    Enter the applicable user-defined pseudo account. The length of the fixed part of the code depends on the length of the table value you have defined as the variable part of the code. Here, you want to combine the fixed part of the code with the document type which consists of 3 characters. Since the maximum length of a pseudo account used for contra accounting is 7 characters the fixed part must therefore be 4 characters. The fixed part must always start with an X.
    Description
    Account number
    Enter the account number that you want to post the preliminary cost to.

    Click OK to update.

  4. You return to Work with pseudo accounts where you can add the next pseudo account. This step will explain how you can set up a preliminary cost pseudo account specifically for preliminary A/P invoices with the FPI document type. Complete the following fields:
    5. Pseudo
    If you enter, e.g. XCLIFPI, then XCLI is the fixed part (representing any preliminary transaction), and FPI is the variable part (representing a preliminary transaction that has document type FPI). This means that a transaction with document type FPI will have a contra posting to a different main account than the one defined in step 3.
    Description
    Account number
    In the main account part enter the account number that you want to post the preliminary costs to.

    Click OK.

Work with document types

  1. Select the Work with document types menu item.
  2. You access the main panel. Select the document type used for preliminary A/P invoices and click Change.
  3. You access the first Work with document types detail panel. Click Next.
  4. On the second detail panel, the following fields are applicable: (These fields are connected to each other and a combination check verifies that the combination of the two fields are valid.)
    5. Pseudo account code
    Enter 1 to stipulate that the structure of the pseudo account used will consist of the first part being fixed (4 positions) and the second part being the document type.

    For your information:

    • If you enter 2, then the fixed part of the pseudo account must have 3 positions and will be combined with the currency code.
    • If you enter 3, then the fixed part of the pseudo account must have 5 positions and will be combined with the A/R and A/P group.
    • If you enter 4, then the fixed part of the pseudo account must have 5 positions and will be combined with the voucher type.
    • If you enter 5, then the fixed part of the pseudo account must have 4 positions and will be combined with the related document type.
    • If you enter 6, then the fixed part of the pseudo account must have 3 positions (2+1) and will be combined with the currency code. See Set up pseudo accounts for exchange rate variances for additional information on this code.
    Pseudo account
    Enter the fixed part of the pseudo account you created in step 3. Anything entered which differs from 4 positions would not be accepted by the system. The system will check that the fixed part has been entered in the Pseudo account file.

    Tip: If you set G/L postings panel to NO, then you will not have to view the G/L postings panel as part of the transaction entry. You may want to do this because all postings will be created automatically thus saving you time spent on viewing panels that you may not wish to see. Click OK. Exit the routine.

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