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 Process of Individual Value Adjustments and Discounts

Purpose

Run the program for valuating the open customer items as part of the financial statement preparation.

For open items that are first due much later (such as in one year), you calculate a discount.

For open items that are overdue, you calculate a flat-rate individual value adjustment (for example, the receivables of all customers in a certain country are reduced by ten percent).

Prerequisites

You have made the Customizing settings under Accounts Receivable and Accounts Payable in the Implementation Guide for individual value adjustments and discounts.

Process Flow

The process flow of an individual value adjustment or discount is defined in a main program. The following describes the process of valuation as predefined in the SAP standard system. You can change the type and the algorithm for the valuation using function modules (business transaction events) that you develop. See Defining Customer Valuations .

The process flow of a discount and a flat-rate individual value adjustment in the SAP standard system is as follows:

Enter the selection parameters for the valuation process flow.

Start the valuation adjustment.

Calculation of the Discount

The system carries out a discount, that is, the value of long-term receivables at the balance sheet key date is calculated. The discounted value is displayed as a cash value.

The value from the foreign currency valuation is the basis for the discount calculation in the SAP standard process. If you are not using a foreign currency valuation, the local currency amount is used for the calculation.

All non-interest bearing receivables or those with too low an interest calculation are discounted if they do not fall due before the balance sheet key date. The percentage values per currency that you enter in Customizing are used for discounting. To enter these values, select the activity Define interest rates in the Implementation Guide (IMG) under Accounts Receivable and Accounts Payable .

The result of the calculation is the cash value. This is saved per item.

Calculation of the flat-rate individual value adjustment

The SAP system carries out a flat rate valuation adjustment, that is, certain customer items are valuated using a flat rate provided by an SAP standard algorithm.

The cash value of the discount is the basis for the calculation of the individual value adjustment in the SAP standard process. If you are not using a discount, the value from the foreign currency valuation is used. If no foreign currency valuation is available, the local currency amount is used for the calculation.

For the program run, the customer accounts can be summarized using the group number. The balance per account group is calculated. No calculation is made for a credit balance. Calculations are only made for debit balances. The open items are discounted using the valuation adjustment key in Customizing and the percentage rate entered there.

With a flat-rate individual value adjustment, the net value (not including taxes) is assumed for the calculation.

You correct the valuation adjustment or change it manually.

The valuation adjustment generates a value that you can correct or change manually.

If you generally want to manually discount unsecured receivables, in Customizing select the “Valuate manually” indicator for the definition of the valuation adjustment key. In this case, the open items are selected during the valuation process, but no calculation is made. To do this, select the activity Define valuation adjustment key in the Implementation Guide (IMG) under Accounts Receivable and Accounts Payable .

Print the valuation adjustment.

Create postings and transfer them to general ledger accounting.

Result

The valuation adjustment displays a list that shows the following values per item:

  • Document number

  • Customer group

  • Valuation adjustment key

  • Original local currency amount

  • Basis value for the calculation (possibly the discounted amount)

  • Valuated gross amount

  • Valuation difference (gross)

  • Valuation difference (net)

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