Reconciliation Accounts are G/L accounts that receive postings from a subsidiary ledgers.

Meaning, transactions data are not posted directly to recon accounts. Example of recon accounts are Accounts Receivable, Accounts ayable and !ixed Assets G/L. !or accounts receivable G/L the subsidiary ledger is the customer account. All transactions "ith the customers are posted directly to the customer account and the recon account is automatically updated. #o" this thing happen$ %ell, "hen you create a customer account you specify under the &ompany &ode data the reconciliation account.

'o, all normal transactions to the customer e.g. sale of goods are posted to the recon account defined in the customer master data. (ext )uestion "ould be, "hat G/L account should be updated for postings of customer do"n payment *advance collection+$ !or proper accounting, do"npayment should not be posted to Accounts Receivable u,-./ trade. 0t should be posted to different G/L account e.g. Advances from customer. %ell, ho" "ould the said transaction be posted to Advances accounts.

'o, "ith the use of special G/L indicator you can specify in the set1up "hat G/L account advances transactions be posted. 'tandard posting 2ey of customer transaction "ith special G/L indicator are -3 *dr+ and .3 *cr+. 4he system "ill al"ays re)uire you to indicate the special G/L indicator "hen you use the said posting 2eys.

#ope it can assist you in understanding.

International commercial terms or Incoterms are a series of sales terms that are used by businesses throughout the world. Incoterms are used to make international trade easier. They are used to divide transaction costs and responsibilities between buyer and seller. Incoterms were introduced in 1936 and they have been updated six times to reflect the developments in international trade. The latest revisions are sometimes referred to as Incoterms 2000. There are thirteen Incoterms that are used by businesses and are used in four different areas. eparture !"roup #$
5 E6% 7 Ex %or2s E6% means Ex %or2s and is follo"ed by a named place, for example E6% 8allas. E6% means the seller9s responsibility is to ma2e the goods available at the seller9s premises. 4he seller is not responsible for loading the goods on the vehicle provided by the buyer, "ho then bears the full cost involved in bringing the goods from there to the desired destination.

%ain &arriage 'ot (aid )y *eller !"roup +$

5 !&A 7 !ree &arrier !&A means !ree &arrier and is follo"ed by a named place, for example !&A :ro"nsville. !&A means the seller fulfills its obligation to deliver "hen it has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place. 0f no precise point is indicated by the buyer, the seller may choose "ithin the place or range stipulated "here the carrier shall ta2e the goods into its charge. 5 !A' 7 !ree Alongside 'hip

!A' means !ree Alongside 'hip and is follo"ed by a named port of shipment, for example !A' (e" ;or2. !A' means the seller is responsible for the cost of transporting and delivering goods alongside a vessel in a port in his country. As the buyer has responsibility for export clearance, it is not a practical incoterm for <.'. exports. !A' should be used only for ocean shipments since ris2 and responsibility shift from seller to buyer "hen the goods are placed "ithin the reach of the ship9s crane. 5 !=: 7 !ree =n :oard !=: means !ree =n :oard and is follo"ed by the named port of shipment, for example !=: :altimore. %ith !=: the goods are placed on board the ship by the seller at a port of shipment named in the sales agreement. 4he ris2 of loss of or damage to the goods is transferred to the buyer "hen the goods pass the ship9s rail, i.e. off the doc2 and placed on the ship. 4he seller pays the cost of loading the goods.

%ain &arriage (aid )y *eller !"roup &$

5 &!R 1 &ost And !reight &!R means &ost and !reight and is follo"ed by a named port of destination, for example &!R 'ydney. &!R re)uires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the ris2 of loss or damage to the goods, as "ell as any cost increases, are transferred from the seller to the buyer "hen the goods pass the ship9s rail in the port of shipment. 0nsurance is the buyer9s responsibility. 5 &0! 1 &ost, 0nsurance And !reight &0! means &ost, 0nsurance and !reight and is follo"ed by a named port of destination, for example &0! Miami. &0! is similar to &!R "ith the additional re)uirement that the seller purchases insurance against the ris2 of loss or damage to goods. 4he seller must pay the premium. 0nsurance is important in international shipping, more than domestic <' shipping, because <.'. la"s generally hold a common carrier to be liable for lost or damaged goods. 5 & 4 7 &arriage aid 4o & 4 means &arried aid 4o and is follo"ed by a named place of destination, for example & 4 >ansas &ity. & 4 means that the seller must pay the freight for the carriage of the goods to the named destination. 4he ris2 of loss or damage to the goods and any cost increases transfers from the seller to the buyer "hen the goods have been delivered to the custody of the first carrier, and not at the ship9s rail. 5 &0 1 &arriage And 0nsurance aid 4o &0 means &arriage And 0nsurance aid 4o and is follo"ed by a named place of destination, for example &0 :oston. &0 has the same incoterm meaning as & 4, but in addition the seller pays for the insurance against loss of damage.

,rrival !"roup $
5 8A! 7 8elivered At !rontier 8A! means 8elivered At !rontier and is follo"ed by a named place, for example 8A! El aso. 8A! means that the seller?s responsibility is complete "hen the goods have arrived at the frontier but before the customs border of the country named in the sales contract. 4his buyer is responsible for the cost of the goods to clear customs.

5 8E' 1 8elivered Ex 'hip 8E' means 8elivered Ex 'hip and is follo"ed by a named port of destination, for example 8E' @ancouver. 8E' means the seller shall ma2e the goods available to the buyer on board the ship at the place named in the sales contract. 4he cost of unloading the goods and associated customs duties are paid by the buyer. 5 8EA 1 8elivered Ex Auay 8EA means 8elivered Ex Auay and is follo"ed by a named port of destination, for example 8EA Los Angeles. 8EA means the seller has agreed to ma2e the goods available to the buyer on the )uay at the place named in the sales contract. 5 88< 7 8elivered 8uty <npaid 88< means 8elivered 8uty <npaid and is follo"ed by a named place of destination, for example 88< 4ope2a. 4he seller has to bear the costs involved in shipping the goods as "ell as the costs and ris2s of carrying out customs formalities. 4he buyer pays the duty and has to pay any additional costs caused by its failure to clear the goods for import in time. 5 88 1 8elivered 8uty aid 88 means 8elivered 8uty aid and is follo"ed by a named place of destination, for example 88 :a2ersfield. 4he seller has to pay the costs involved in shipping the goods as "ell as the costs and ris2s of carrying out customs formalities. 4he seller pays the duty and the buyer has to pay any additional costs caused by its failure to clear the goods for import in time. 88 should not be used if the seller is unable to obtain an import license.

Sales and Distribution (SD) International commercial term

A codification of international rules for the interpretation of the commonly used terms in international trade. An international commercial term (Incoterm) defines the terms of sale and the passing of risks for import and export of merchandise. Incoterms include the following: EXW Ex Works !"A !ree "arriage and !reight !A# !ree Alongside #hip !$% !ree $n %oard ship "!& "ost and !reight "I! "ost' Insurance' and !reight "() "arriage (aid )o "I( "arriage and Insurance (aid )o *A! *eli+ered At !rontier

*E# *eli+ered Ex #hip *E, *eli+ered Ex ,uay **- *eli+ered *uty -npaid **( *eli+ered *uty (aid