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 Transactions → Doubtful 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 Transactions → Doubtful 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.

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:  Account Adjust Receivables; role:  Account Maintenance, Transfer Postings, Reversals (SAP_FI_CA_ACCOUNT_MAIN_REVERS) Receivables: Doubtful Entry and Individual Value Adjustment ), or automatically (SAP menu:  Periodic Processing Adjustment Postings Correct Receivables According to Age ; role:  Closing Operations (SAP_FI_CA_CLOSING_OPERATIONS) Correct Receivables According to Ag 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  Business Transactions Doubtful Items and Individual Value Adjustment Maintain Account Determination for Doubtful Item Entries/Maintain Account Determination for Individual Value Adjustment ).

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  Contract Accounts Receivable and PayableunderBasic Functions Special Features of Tax Processing, enter tax calculation type 06, 07, or 08 in the activity Define Tax Calculation Types for Write-Off and Individual Value Adjustments. Then choose  Business Transactions Doubtful Entries and Individual Value Adjustments 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:

Reductions to individual value adjustments can occur due to:

Reductions to doubtful entries can occur due to:

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