It is necessary at times to post some special transactions related to vendors and customers to general ledger accounts, other than

vendor and customer reconciliation accounts. This allows some special transactions to be displayed separately in General ledger and sub ledger. Such requirement may arise because of statutory reporting requirements or some other reasons For example normal general transactions the accounts payable netted against the accounts receivable for partner who acts both as a vendor as well as customer while executing the automatic payment program. But in case of certain special transactions like down payments, the down payment must not be netted with receivables and payables. Therefore a transaction like down payment must be considered as a special general ledger transactions In order to record the special gl transactions separately from Normal gl transactions and alternative accounts are defined. The special gl transactions are posted to these alternative reconciliation accounts in general ledger. This allows balance of these transactions to be displayed separately on balance sheet The following major GL Transactions available in SAP Standard system. The Special GL indicators are used to identify the special gl transactions mentioned in brackets a) Down Payments A b) Down Payment request F c) Bill of Exchange Receivable B d) Letter of Credit L e) Payment request P f) Guarantee G g) Reserve for Bad Debt E h) Security Deposit H Different Types of Special GL Transactions The Special GL transactions are categorized into different types on the basis of business as well as technical factors. This results in two different classifications of Special GL Transactions The business related factors represent the main purpose of Special GL transactions are used. On the basis of business related factors the Special General Ledger transactions can be categorized into following three type 1) Related to Down payments 2) Related to Bills of Exchange 3) Related to Other Special GL Security deposit, On the basis of technical factors Special GL Classification: 1) Real Postings: These are special GL freely definable offsetting account. They usually form an item of balance sheet Ex: Down payments (These postings are reflected in posting of Sub ledger accounts and affect overall balance of sub ledger accounts) 2) Statistical Postings: These special GL Accounts, where offsetting accounts always remain same

These offsetting accounts can be defined while configuration of statistical special GL posting. The system then posts the offsetting entry automatically to the offsetting account defined during the configuration 3) Noted Items: These items serve as reminder about the payments which are to be made or payments and which are to received or receivable. They are not displayed in the accounts but can be processed using a dunning or payment program. These special GL postings do not update the account balances and merely appear in the account line item reports as an open item. These open item act as reminder about the pending payments