Receivables can marked as doubtful and it is possible to make value adjustments (IVA) where appropriate in order to adjust existing receivables to their actual estimated values.

Overview

Transactions/Programs

Transaction
Description
FPZWAdjust Receivables
FPRWAdjust Receivables According to Age
FPRVRepost Corrected Receivables
FPRADisplay Adjusted Receivables

Customizing

FICAIMG:

> Contract Accounts Receivable and Payable
> Business Transactions
> Doubtful Items and Individual Value Adjustment

Mass Activities

AKTYP
EVE_ITVL
EVE_PARA
TCODE
REVB17501751FPRW
REVA17551756FPRV

Fi-CA Events

Event
Description
Transaction
Function Module
1750Mass Activity: Doubtful Entries/Individual Value AdjustmentFPRVFKK_SAMPLE_1750
1751Mass Act: Doubtful Entries/Ind. Val. Adj.(Intervs)FPRVFKK_SAMPLE_1751
1752Mass Act.: Determine BP Type for Transfer PostingFPRVFKK_SAMPLE_1752
1755Mass Act: Value Adjustment by Age of ReceivableFPZWFKK_SAMPLE_1755
1756Mass Act: Value Adjustment by Age of Receivable, Move ParamsFPZWFKK_SAMPLE_1756
1794Mass Activity: Change Run ParametersFPZWISU_SAMPLE_1794
1795Mass Activity: Save Run ParametersFPZWISU_SAMPLE_1795
2950Value Adjustments: Define Own CriteriaFPZWISU_SAMPLE_2950
FKK_SAMPLE_2950_CZ
FKK_SAMPLE_2950_HU
2951Value Adjustments: Req./Optional Fields for FPRWFPZWFKK_SAMPLE_2951
FKK_SAMPLE_2951_CZ
2952Value Adjustments: Inherit Additional Acct Assgt CharactsFPRVFKK_SAMPLE_2952
2953Value Adjustments: Exceptions for CalculationFPRVFKK_SAMPLE_2953
FKK_SAMPLE_2953_CORR_INVOICE
FKK_SAMPLE_2953_CREDIT
2954Value Adjustments: Criteria for Reason SelectionFPZWFKK_SAMPLE_2954
FKK_SAMPLE_2954_CZ
2955Value Adjustments: Check Entry of Proc. MethodFPZWFKK_SAMPLE_2955
FKK_SAMPLE_2955_CZ
2957Value Adjustment: Dynamic Assignment of Value Adjustment GrpFPZWFKK_SAMPLE_2957
4300Value Adjustment: Additional Activities for CreationFPZWFKK_SAMPLE_4300
4301Value Adjustment: Additional Activities for ChangeFPZWFKK_SAMPLE_4301
4302Value Adjustment: Special Functions before ProcessingFPZWFKK_SAMPLE_4302
FKK_SAMPLE_4302_CZ
4303Value Adjustment: Selection of ItemsFPZWISU_SAMPLE_4303
5075Write-Off: Process G/L ItemsFPZWISU_SAMPLE_5075
FKK_SAMPLE_5075_CZ

 

Further information can be found on WIKI page for FI-CA event concept.

Posting Areas

Posating Area
Description
1297Valuation Areas for Doubtful Entry/Individual Value Adjustmt
1298Activate Valuation Areas for Receivables Adjustments
1299Individual Value Adjustment – Resets to Separate Accounts
1300Default Values: Receivable Valuation
1301Acct Determination: Doubtful Rec. Acct
1302Acct Determination: Individual Value Adjustment
1304Acct Det.: Indiv. Value Adjustment (not Tax-Relevant)
1306Alternative Tax Account Individual Value Adjustment
1307Correction Account for Tax Individual Value Adjustment (Poland)

Further technical information

Tables

Table
Description
DFKKZWDoubtful/Individual Val. Adjust. for Receivables – Trigger
DFKKZW2Doubtful/Indiv. Val. Adjustments for Receivables – Tfr Pstg
DFKKZWHDoubtful/Ind.Val.Adj.Receivables – History

Package

Package
Description
FKKBContract A/R & A/P: Central Objects

Function Groups

Function Group
Description
FKZWEnter Doubtful/Make Indiv.Val.Adjustmts
FKRV2Value Adjustment Acc. to Age Structure
FKRVReceivable Valuation Transfer Postings

Reports

Report
Description
RFKK_ZWFEWB_DISPDisplay Receivable Adjustment Transferred

Function Modules

Function Group: FKZW
Function ModuleDescription
FKK_DB_DFKKZW_SINGLEINTERN: Lesen von DFKKZW (Direktzugriff)
FKK_DB_TFK048B_SELECT_ALLINTERN: Selektiert Steuerberechnungstabelle EWB
FKK_DOUBTF_HISTORY_DISPLAYEinträge aus ZWF/EWB-Historie anzeigen

Doubtful Receivables

You can use this component to mark receivables as doubtful and make value adjustments where appropriate in order to adjust existing receivables to their actual estimated values.

Adjustment of Receivables

You can adjust the existing receivables in the system at any time. In Contract Accounts Receivable and Payable, there are two types of adjustment to receivables: specifying doubtful entries and making individual value adjustments.

Doubtful entries reflect the fact that a business partner may not pay the receivables. The doubtful receivable is separated from the undisputed receivables for accounting purposes. This is done by posting the doubtful receivable to a separate receivables account. Using individual value adjustments, you can adjust the value of individual receivables, in addition to the use of doubtful entries. You can adjust the value in one of the following ways:

  • Using a percentage rate that you can define as needed

  • Using a specified adjustment amount

    An expense is posted for the individual adjustment.

    A doubtful entry is always a prerequisite for an individual adjustment, whereas a doubtful entry can be recorded without an individual value adjustment.

You make adjustments to receivables so that the value of receivables reflects their actual estimated value.

In Contract Accounts Receivable and Payable, you adjust receivables in two steps:

  • You make, change, and display adjustments to receivables in a dialog transaction.

  • You transfer the adjusted receivables cumulatively to the general ledger using a mass activity.

    This mass activity should be executed on a regular basis. This mass activity posts the changes in each run to the individual receivables, doubtful entries, expense, tax, and adjustment accounts.

Once a receivable has been adjusted, every time you run the mass activity for transferring the adjustments, the system checks whether the receivable is still open in the original amount. Every instance of clearing, partial clearing, and resetting clearing is taken into account. If, for example, the receivable is written-off or reversed (using the Write Off Items (FP04) transaction or Reverse Document (FP08) transaction), an existing doubtful entry or individual value adjustment is automatically reset during the next transfer posting run.

Adjusting Receivables According to Age

Along with manually designating receivables as doubtful and making individual value adjustments for receivables (see Adjusting Receivables ), you can use this mass activity to automatically set receivables to doubtful and make individual value adjustments on the basis of their age.

You have to enter value adjustment variants for automatic adjustments in Customizing for Contract Accounts Receivable and Payable under Business TransactionsDoubtful Entries and Individual Value Adjustments .

If you want to define customer-specific exceptions and checks, maintain the processing methods for user exits for automatic adjustments in Customizing for Contract Accounts Receivable and Payable under Business TransactionsDoubtful Entries and Value Adjustments .

The Adjust Receivables According to Age mass run provides the following functions:

By using value adjustment variants, you can define the age from which a value adjustment is to be made for a receivable using a defined percentage rate.

The mass run can select open items, as well as already adjusted items. You can thereby enter an adjustment manually, but make the percentage rate for the value adjustment dependent on the age of the receivable.

At event 2950, you can use your own function module to specify your own customer-specific checks and exceptions. Possible exceptions could be:

No adjustments should be made to items of specific business partners.

Different tax handling should be used for certain items.

In addition, the sample function module FKK_SAMPLE_2950 controls whether, during the processing of items that are in installment plans or promises to pay, the due date in the original items or the due date in the installment plan items, or the payment dates are used as a comparison date for determining the age of the receivable.

Choose one of the following paths:

Role

Closing Operations (SAP_FI_CA_CLOSING_OPERATIONS)→ Adjust Receivables According to Age

SAP Easy Access screen

Periodic Processing Adjustment Postings Adjust Receivables According to Age

Specify the date and an ID. You can then identify the program run later using these specifications.

Choose Continue.

Enter the appropriate selection parameters on the Selection tab page. You can:

Set all open items of a certain age as doubtful and make value adjustments

Adjust, using a specific percentage rate, only those receivables that have already been set manually to doubtful and adjusted Using the filter indicator, you control how existing value adjustments are treated. You can:

Exclude existing manual value adjustments from the selection

Only perform value adjustments if the new percentage rate or the new specified value adjustment amount leads to a higher value adjustment than the previous percentage rate or the previous specified value adjustment amount.

If you do not select a filter indicator, the value of all selected items is adjusted in accordance with the age grid – provided the value adjustment (percentage rate or specified value adjustment amount) would change at all.

By setting the Simulation Run indicator, you can test the current status of the data. This means that no postings are created.

You can select the receivables documents to be adjusted according to the following parameters:

Company code

Contract account

Business partner

Valuation area If you use valuation areas, the Valuation Area field is optional. If the field remains empty, the system selects only company codes for which valuation areas are not defined. If the field contains a specific valuation area, the system selects only company codes that have been adjusted to valuation areas and to which this specific valuation area has been assigned in Customizing.

Selection date (upper limit for the documents to be selected)

In the Posting Date field, specify the date on which the individual value adjustment is to be posted and then select a reason for the adjustment as well as an adjustment variant. You can define realized methods for the execution of your own customer-specific checks in event 2950 for processing methods. You have to define at least one processing method in the Czech Republic and Slovakia.

Enter a reason for the value adjustment. Enter a value adjustment variant with the age structure you want to use to perform the value adjustment.

At event 2957, you can also determine the value adjustment variant dynamically in dependence on the given receivable item (see sample function module FKK_SAMPLE_2957).

Schedule the program run. For more information, see Functions for Scheduling Program Runs .

Alternatively, you can also use this function for resetting already posted value adjustments.

To do this, choose the Selection of Already Posted Items button on the Selection tab page.

Specify the appropriate parameters for the documents to be selected and set the Reset Value Adjustmentindicator.

Enter a reason and a date for the reset, and schedule the run.

Transferring Adjusted Receivables

You can use this mass activity to transfer cumulative adjusted and doubtful receivables in the general ledger.

You have carried out the receivables adjustment or doubtful entries function either manually, (SAP menu: Start of the navigation path Account Next navigation stepAdjust Receivables; End of the navigation path role: Start of the navigation path Account Maintenance, Transfer Postings, Reversals (SAP_FI_CA_ACCOUNT_MAIN_REVERS) Next navigation stepReceivables: Doubtful Entry and Individual Value Adjustment End of the navigation path ), or automatically (SAP menu: Start of the navigation path Periodic Processing Next navigation stepAdjustment Postings Next navigation stepCorrect Receivables According to Age End of the navigation path ; role: Start of the navigation path Closing Operations (SAP_FI_CA_CLOSING_OPERATIONS) Next navigation stepCorrect Receivables According to Ag End of the navigation path e). For more information, see Adjusting Receivables According to Age and Making and Changing Receivables Adjustments In Customizing for Contract Accounts Receivable and Payable , you have defined the relevant G/L accounts. (See Start of the navigation path Business Transactions Next navigation stepDoubtful Items and Individual Value Adjustment Next navigation stepMaintain Account Determination for Doubtful Item Entries/Maintain Account Determination for Individual Value Adjustment End of the navigation path ).

You can post reductions to individual value adjustments to a separate revenue account instead of making the reduction in the expense account. You can also configure a separate non-periodic revenue account that you use if the reset is performed in an alternative follow-on year to the original value adjustment.If the reset is triggered by payment or write-off of the adjusted item, you can post the reset of value adjustments to a separate revenue account. You can configure separate accounts for payments and write-offs. To do this, in Customizing for Start of the navigation path Contract Accounts Receivable and PayableunderBasic Functions Next navigation stepSpecial Features of Tax Processing, End of the navigation path enter tax calculation type 06, 07, or 08 in the activity Define Tax Calculation Types for Write-Off and Individual Value Adjustments. Then choose Start of the navigation path Business Transactions Next navigation stepDoubtful Entries and Individual Value Adjustments End of the navigation path and, in the activity Maintain Alternative Accounts for Resetting Value Adjustments, enter alternative accounts for the reset of a value adjustment by payment or write-off.

In the general ledger, you can:

  • Post individual value adjustments of receivables as an expense

  • Post doubtful receivables to accounts for doubtful items

  • Reduce individual value adjustments or doubtful entries

Reductions to individual value adjustments can occur due to:

  • Manual reset of a value adjustment

  • Reduction of the percentage rate of the value adjustment

  • Clearing of the item whose value has been adjusted by payment

  • Clearing of the item whose value has been adjusted by write-off

  • Other clearing of the item whose value has been adjusted

Reductions to doubtful entries can occur due to:

  • Manual reset of a doubtful entry

  • Clearing of the doubtful item by payment

  • Clearing of the doubtful item by write-off

  • Other clearing of the doubtful item

 

  1. Choose one of the following paths:

    • SAP Easy Access screen Start of the navigation path Periodic Processing Next navigation stepAdjustment Postings Next navigation stepTransfer Posting of Adjusted Receivables End of the navigation path

    • Role Start of the navigation path Closing Operations (SAP_FI_CA_CLOSING_OPERATIONS) Next navigation stepTransfer Corrected Receivables End of the navigation path

  2. Specify the date and an ID and choose Continue . You can then identify the program run later using these specifications.

  3. On the General Selections tab, specify a reconciliation key and the relevant selection parameters (business partners, contract accounts, company codes). In the area Create Transfer Posting Documents For , selectDoubtful Entry or Individual Value Adjustment as required.

    If you use valuation areas, also specify if you want to select all company codes, only company codes with valuation areas, or only company codes without valuation areas.

    In the field Posting Date , enter the date on which the individual value adjustment/doubtful entry is to be posted. By setting the Simulation Run indicator, you can test the current status of the data. This means that no postings are created.

  4. Schedule the program run. For more information, see Functions for Scheduling Program Runs .

Or you can use this function to reverse transfer postings that were already made.

  1. To do so, on the Reversal Parameters tab page, select the Reversal Run radio button.

  2. Enter the run for which you want to reverse transfer postings. Schedule the run.

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