Purpose

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.

Implementation considerations

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.

Integration

The postings that arise from the discounts and flat-rate individual value adjustments are transferred to general ledger accounting.

Features

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.

Constraints

Valuations are only possible for customer items. Vendor and G/L accounts cannot be valuated.