Flat-Rate Value Adjustment (FVA) with Risk Indicator 

Use

You can use the FVA with Risk Indicator function in conjunction with the RBD-GATE to carry out automatic percentage value adjustments for receivables (in the case of SAP Loans Management contracts) and balances (in the case of SAP Deposits Management accounts) in accordance with a freely definable risk indicator such as the dunning level. The risk indicator can be configured to your own requirements. The corresponding value adjustment percentages are defined in Customizing. For an example of this business process, see Reserve for Bad Debts (RBD).

 

The RBD-GATE supplies the FVA with Risk Indicator function with a pool of data currently relevant for flat-rate value adjustment. The function for filling the temporary value adjustment pool (RBD-GATE) must reside in the customer namespace.

You can also use this function to carry out automatic percentage value adjustments for receivables from consumer loans (in line with the dunning level).

 

Scope of Functions

In the initial screen, you can specify the source system, the product types, and the number range intervals.

You also need to specify the following:

·        the RBD Account to which the postings are made

·        the Valuation Method (01 = German Commercial Code, 02 = US GAAP)

·        the Selection Date on which the documents for value adjustment are to be read

·        thePosting Date (and if necessary the Special Period) on which the value adjustment is to be posted.

The entries in the Package Size section are used to divide the source system contracts/accounts into several groups for processing larger volumes of contracts/accounts.

You can set this function to

·         Simulate the creation of flat-rate value adjustments

·         Simulate the posting of flat-rate value adjustments

·         Execute the entire posting procedure (Update Run)

The value adjustments are then carried out in accordance with the risk indicator and the other relevant settings in the system (for consumer loans, on a percentage basis according to their dunning level).

If the reset procedure is set for FVAs with risk indicator in Customizing, the relevant reset record is created the day after the FVA is posted.

If you are using the reset procedure, bear in mind in the run up to the fiscal year change that the reset record is not posted until the following day. Do not run the value adjustment report on the last day of the year if you do not want the reset to be posted in the following fiscal year.