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Function documentation Inflation Adjustment of Monetary Items Locate the document in its SAP Library structure

Use

In Turkey, when you prepare a balance sheet, you can adjust for inflation any outstanding monetary assets and liabilities – for example, bills of exchange, postdated checks, and reconciliation accounts for accounts payable and receivable – according to a specific formula. But, under Turkish law, you must reverse all of these adjustments when you open the next period.

To this end, you can use the Inflation Adjustment of Monetary Items program. It calculates the interest using the prescribed formula and makes the necessary postings. It then automatically reverses the postings at the beginning of the next period.

Prerequisites

Before you can run the report, you must:

  1. Define an inflation method and assign it to your company code
  2. Define which G/L accounts you want the system to post the inflation adjustments to (see Account Determination)
  3. Define an interest indicator and the corresponding interest rate
  4. Assign the interest indicator to the G/L accounts that are to be adjusted

Features

Selection

  1. To access the report, in the Turkey menu, choose Bills of Exchange ® Inflation Adjustment of Monetary Items.
  2. Enter data as required, including:

Enter the day that you want to create the balance sheet for. This must be the last day in an accounting period.
  1. Choose This graphic is explained in the accompanying text.

The system displays a list of the G/L accounts that you have selected. For each account, the system shows the items that have to be adjusted and what the adjustment will be according to the inflation calculation formula.

The list is formatted using the Structure linkSAP List Viewer: see this documentation for more information about navigating and formatting options within the list.

In addition to the standard SAP List Viewer functions, you can also choose:
  1. Check the list to make sure that the adjustments are correct.
  2. Choose This graphic is explained in the accompanying text Create Session to create a batch input session.

Output

The system generates a batch input session with inflation adjustment documents to post and reverse the inflation adjustments. For more information about processing the session, see Structure linkManaging Batch Input Sessions.

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