The P&L adjustment distributes the following items when they arise on payment of a customer or vendor invoice:

• Cash discount paid/received

• Exchange rate differences (realized/valuated)

These items are distributed to the profitability segments affected (for example, business area, profit center, cost center, and so on).

All customer and vendor items cleared within the specified reporting period are selected, and the cash discounts and exchange rate differences, noted within these items, are distributed.

The system determines distribution according to the account assignments for the outgoing document’s offsetting entry. All G/L items are regarded as an offsetting entry, except taxes and cash discounts. An adjustment occurs only for those account assignments that have been posted with no value. If the business area is assigned to an account in the original document’s item to be cleared, the system posts the cash discounts and exchange rate differences with this value. No adjustment is carried out to the business area.