During financial statement preparation, open customer items are valuated. In addition to the foreign currency valuation, you can also calculate a discount for long-term receivables and a flat-rate individual value adjustment for unsecured or overdue receivables.
You can then use the adjusted receivables at a later time as the basis for the sorted list and regrouping of outstanding receivables.
Customizing for the flat-rate individual value adjustments and discounts is found in the Implementation Guide under Accounts Receivable and Accounts Payable® Business Transactions ® Closing ® Valuate. You also find a detailed description of Customizing here.
The postings that arise from the discounts and flat-rate individual value adjustments are transferred to general ledger accounting.
The process flow of the valuation is provided in a main program. Valuations are created in a proposal run and you can then change these values manually.
After processing, you can either reject these values or transfer them to G/L accounting. During the transfer, the system creates the posting in G/L accounting and saves the valuations for each line item. You can therefore also display the valuation in the document display.
Valuations are only possible for customer items. Vendor and G/L accounts cannot be valuated.