Suspense Account

Hi Friends,

I have a problem with suspense account. I been working for some organization and they have been getting this suspense account error since 2003. But its a big organization and they didn't consider it as a problem so far..but now-a-days this suspense account is increasing rapidly and decreasing rapidly.. Could you pls tell me how to clear this suspense account. They are using Oracle Applications since 2001. Your help is greatly appreciated .


Thanks in advance

kishu

Questions by kv040

Showing Answers 1 - 12 of 12 Answers

vasudeo007

  • Aug 17th, 2008
 

Suspense account is a temporary arrangement. This arrangement is made to make trial balance agree.

In your organisation, whether it is oracle or any other application, the error should not happen. In a computer enviornment there should be no "Suspense Account". Anyway. It seems that employees are not making entries properly.

For every debit there is equal credit. And so when an entry is done it should be reflected in both debit and credit accounts. If it is not reflecting then there is need of Suspense Account.

When an entry is not posted to one side of transaction, that is only debit is recorded and credit is not recorded then trial balance will not agree. Correspondingly if an entry is entirely forgot to be registered in any particular book then trial balance will agree but general ledger will not agree with cash book. So such entries are posted in Suspense account and matters are sorted out temperorily.

Then reconciliation is done and mistakes are found out. Suspense account is made nil in cases when all mistakes are sorted out.

Vasudeo.

Yincision

  • Aug 23rd, 2008
 

Depending on the kind of transaction you may or may not need a suspense account. If a transaction is considered incomplete till a certain form of confirmation arrives the amount would be temporarily stored in suspense. The trial balance will therefore reflect an increase or decrease as and when the confirmation arrives.

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Bhavini Singala

  • Sep 27th, 2008
 

Posible Factor
Creation of a new sub ledger account might not be properly integrated with the general ledger, thus corresponding entries going under the suspense account

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balajinanduri

  • Jul 1st, 2009
 

Generally the suspense Accounts are temporary and are used to park the amounts.

1. Therotically suspense account is used if there is any disagreement in trial balance.
2. Suspense accounts are used for making the payments on online.

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sunilescribe

  • Nov 23rd, 2009
 

Suspense Account is a Actually a Control account, which helps us to allocate the Sundry Items which is not legible to book under an account.If the Accounts are are pewrfect the suspence a/c balance, must be zero.Mostly in the suspense account we will be booking the gross amount of the invoice, as we are not recieving the original invoice while booking an item to suspense a/c. We have to be carefull for the allocation of amount from the suspense account, that a fixed percentage must go to the VAT account (if any).

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mamathakm

  • Jan 26th, 2010
 

Suspense a/c that a/c opened when the trial balance does not tally, wherein the difference amount of the trail balance is entered inorder to tally both the credit side and debit side of the trial balance.

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Gazy5335

  • Jun 22nd, 2010
 

If you talk about manual book keeping, the suspense refers to an account in which we put the entry pertaining to difference in trail balance, since you have mentioned you are working on Oracle, in any ERP Trail balance is always matched. Hence suspense account refers to some other thing.  i.e. when there is difference in reconciling any creditor, and we are unable to find the cause of difference we put that amount to suspense account assuming that creditor is correct on their part. now what you have to do is when you see entries in your suspense account find the other account of the entry and do research to find the causes of that entry.

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raghunath

  • Jul 23rd, 2011
 

To clear suspends account in oracle finance.we have to assign suspends account type in at our chart of accounts as liabilities account type.in values of account segment.then go to accounting setups open our primary ledger than click on update accounting options in step 2 of 4 just scroll down fill suspends account,as which we have defined at chart of accounts in values segment as value like 3030.then query the a/c:01.00.00.00.3030.click on finish.go to journal post a journal , automatically system will add suspends account line.
a/c type is:01.00.00.00.rent 10000
:01.00.00.00.payable 9000 post.


remaining 1000 rs is added by system.

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Hemant Balodia

  • Jul 25th, 2011
 

I have worked for "Westpac Banking corporation" which is largest bank of Australia.

I was in suspense team. In suspense accounts generally value comes when the values moves from sub ledger to ledger through interface. In order to maintain the suspense accounts we need to keep clearing them by moving back the values to their actual accounts.

In Oracle you can pull out the average balancing report for that account in order to find the actual account and then can be easily moved to their actual account.

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