Flat-Rate Value Adjustment and Discounting 

Description

As of Release 4.5A, you can carry out flat-rate value adjustment and discounting for open customer items (during preparations for the balance sheet).

During flat-rate value adjustment, you can use a valuation program that searches for all the appropriate customer items and carries out valuation according to a particular algorithm.

Using this same program, you can also discount long-term receivables (in which case the net present value of the receivables is determined).

These valuations are created in a proposal run and can be manually postprocessed. Following transfer, the results can be viewed when displaying documents.

In the standard system, the following functions are supported:

• Discounting of longer-term receivables

• Flat-rate value adjustment due to the countries to which the items relate and their lateness.

You can create further valuation procedures using self-defined Business Transaction Events.

Open receivables are then sorted and reclassified on the basis of the receivables for which valuation adjustment has been carried out.

Change system parameters in customizing

• Flat-rate valuation adjustment requires the definition of a currency key in Customizing. This currency key determines the percentage rate of reserves used to calculate valuation adjustment. Further information can be found under the activity Define valuation adjustment key.

• You define account determination for automatic postings within discounting and flat-rate value adjustment. Further information can be found in the activity Define accounts.

• You define the base value with which calculation is to take place. For further information, refer to the activity Determine base value.

• You make your settings for line item display. For further information, see the activity Determine values for line item display .

• You define the interest rates for discounting. For further information, refer to the activity Define interest rates.