In the system, currently all the liability accounts can be defined and configured as per party wise (i.e., to be defined and picked up from liability party’s “EN” type of account) from transaction Maintaining Accounts (DBxACT).

Likewise, there are practices in certain banks where liability accounts can be defined and configured business product-wise. Example, liability accounts defined differently for different types of Import LCs (i.e., account A for Import LC Sight, whereas account B for Import LC Usance). Similarly, liability accounts for other business products such as Export LCs, Guarantees, Loans etc.

The new transaction DBxPRA(Product Liability Account)  has been introduced specifically for that purpose in order to configure the product-based liability accounts for the business modules. Here, “Liability Account” and its “Counter/Contra Account” can be defined business product wise.

Select it from the menu item [Static Data -> Product Code -> Product Liability Account].

Liability accounts can be defined based on combinations of “Business Sector”, “Product Code”, “Product Sub-type” and “ Product Variant”. Here, Business sector definition is mandatory, whereas other combinations such as 'Product code', 'Product Sub-type' and 'Product Variant' are optional. Thereby, as a bare minimal, Liability accounts can be defined for a business sector alone (i.e., Import LC, Export LC, Guarantee, etc.), or maximum up to a combination of Business sector, Product code, Sub type and Variant.

If different accounts are to be defined for different currencies, then “Use Contract Currency” option could be selected.

This DBxPRA transaction is linked to Product code definition transaction DBxPRD. Therefore, for creating Liability accounts for a Product code combination, a record must already exist in Product code combination in DBxPRD. Refer the linked article, How to setup Product codes

Maintenance of Product Code Combination in DBxPRD

Then, for the same product code setup, start defining Liability accounts for different types of liability
such as "AVL" , ''AKZ", etc., in transaction DBxPRA.

Click (+) icon to add new product-based liability accounts.

AVL Liability account Set up

Thereby, when a contract is opened (e.g. Import L/C) for the combination as configured using the above steps, then the liability account and counter account are retrieved accordingly.