Receivables Charge-Off - SAP Documentation

Use

This function is used to charge off receivables that have been created from order and contract billing documents.

Example Example

Bankruptcy proceedings are started with regard to the assets of a customer. The receiver informs your organization that you will receive a bankruptcy quote of 30%.. The accounting department informs order processing that 70% of the receivables are unrecoverable. You partially charge off receivables in one or more order billing documents for the customer.

A different customer in your organization requests bankruptcy proceedings. The Accounting department informs you that the bankruptcy proceedings have been rejected due to insufficient quantities. You charge off the full amount for the open receivables in the order billing documents for the customer.

End of the example.

Integration

This function is relevant for subsequent transactions in IS-M/AM revenue distribution, accounting and statistical evaluation. It can lead to manual corrections to sales agent and contract settlement being made. Revenue distribution can be performed for items in the receivables charge-off and is accessed as follows:

Choose Start of the navigation path Logistics Next navigation step Advertising Management Billing Order Billing Document End of the navigation path or Contract Billing Document Charge-Off.

Prerequisites

You have made all the relevant settings in Customizing:

Setting	Menu path
Define billing document types	SAP Media Advertising Management Billing Receivables Charge-Off Define Billing Document Types
Assign billing document types to the Receivables charge-off billing document type.	SAP Media Advertising Management Billing Receivables Charge-Off Charge-off Receivables Billing Type. Assign Billing Types
Define condition types for administrative costs and maximum charge-off amounts	SAP Media Basic Functions Pricing Pricing in Advertising Management Order/Billing Document
Define condition exclusions	SAP Media Basic Functions Pricing Pricing in Advertising Management Receivables Charge-Off Define Exceptions for Charging Off Condition Types
Define number range for collective processing group type V (receivables charge-off)	SAP Media Advertising Management Billing General Settings Number Ranges: Define Collective Processing Group Types
Determine document types in FI	SAP Media Advertising Management Billing General Settings Maintain FI Document Type Determination

The billing document concerned has a billing category that allows receivables charge-off. Billing documents of the order billing category (A) and contract (B) billing category can be charged off.

Features

One charge-off document of billing category F is created for each charged off billing document. The billing document with receivables that are charged off has the Charged-off receivable cancellation type and counts as having been billed following charge-off.

The following charge-off functions are available to you:

Function	Use
Charge off several documents	The charge-off amount specified is divided amongst the individual documents for charge-off according to their net value share.
Charge off individual documents	Enter the charge-off amount or percentage for each document individually.
Charge off receivables fully or partially	Charge off receivables fully or define those to be charged off.
Define charge-off amount or percentage rate	Enter the share of the receivable to be charged off as an absolute amount or as a percentage figure.
Change currency	Choose a different currency in the charge-off documents from that in the preceding document.
Propose document date for charge-off document	Propose a document date for the charge-off amount. The system date is used if you do not propose a document date.
Correct charge-off data	Adjust the charge-off amount or percentage rate manually for individual documents.
Cancel charge-off document	Cancel charge-off documents such as order billing documents. Receivables for the billing document can be charged off again following cancellation.
Align rounding differences	If the net value is not identical to the value to be charged off as a result of roundings and currency conversions, you can use a header condition to correct this value.
Court costs/administrative charges	Use a header condition to add court costs.

The function can only be performed in dialog.

It has a selection and display screen.

Selection

Use the selection criteria to select the billing documents to be charged off. You must specify the billing category of the reference document as a selection criterion.

Choose a billing category with billing documents that can be charged off.

Display

The system displays the selected billing documents. Once you have entered charge-off data for one or more documents and performed the charge-off, the system adds the provisional charge-off documents to the list. Numbering of provisional charge-off documents consists of a dollar sign ($) followed by a number.

The following list editing functions are available to you here in addition to the standard SAP List Viewer functions:

Function	Use	Prerequisite
Display notes	Errors that occur during the creation of charge-off documents are displayed in the form of notes. You can access the notes list from the document list. All SAP List Viewer functions are available to you in the notes list.	You have chosen Goto Notes list.
Display header detail screen for the provisional charge-off document	Access the header detail screen for the provisional charge-off document from the document list.	Enter header conditions in the Conditions screen on the header detail screen. You have chosen Goto Doc.header details.
Display item overview for the provisional charge-off document	Access the item overview for the provisional charge-off document from the document list.	Display the item overview. You have chosen Goto Document details.
Display charge-off document items	Access the item list of provisional charge-off documents from the document list and display the item detail screen for the provisional charge-off document. All SAP List Viewer functions are available to you in the item list.	Display document items for the provisional charge-off document. You have chosen Goto Item list

Update

You can update provisional charge-off documents from the display screen.

Caution Caution

The system updates all provisional charge-off documents included in the list even if you have selected individual documents or hidden documents using the SAP List Viewer filter functions. If you have generated documents that you do not want to update, cancel the transaction and restrict the selection.

End of the caution.

A collective processing group number is assigned to the list during the update. This number allows you to make full use of all log and evaluation functions.

Administrative charge (court costs)

Manual conditions can be maintained on the Conditions screen for the header detail screen to take account of court costs or other administrative charges in connection with the receivable to be charged off.

Note Note

You must activate pricing once you have entered the header conditions ( Start of the navigation path Edit Next navigation step Activate). End of the navigation path

Account determination for conditions that were entered manually is not performed until transfer. This means that in the case of transferred billing documents, no entry is made in the G/L account field on the condition detail screen for the condition type entered manually.

End of the note.

Examples are taken from the reference clients:

Condition type

Definition

Use

VGEB

Header condition, group condition, no restriction for manual entry

Administrative charges are divided proportionally amongst the individual items.

Add an administrative charge of $600 to the charge-off document. You have created a charge-off document with two items. Enter VGEB $600 in the header condition. The amount is divided between the items using the value.

VGEG

Header condition, no group condition, no restriction for manual entry

Administrative charges are assigned to each item.

You have created a charge-off document with two items. Add an administrative charge of $80 to each item in the charge-off document. Enter VGEB $80 in the header condition.

Example Example

A customer pays 60% of the receivable following civil action as a result of a contested receivable. You charge off the remaining 40%. Your organization has incurred court and administrative costs of $1800 as a result of the civil action. The receivables charge-off is to be taken into account in partner settlement. Your contract partner is to be charged a percentage of the court costs in addition to the receivable to be charged off. Enter the court costs as a header condition.

End of the example.

Rounding difference

If the amount determined in the charge-off document is not identical to the charge-off amount required as a result of roundings or currency conversion, you can adjust this value using a header condition:

Condition type

Definition

Use

FABM

Header condition, group condition, no restriction for manual entry

If the amount calculated during the charge-off process is larger than the charge-off amount you selected manually, the condition value is the difference between the amount calculated and the charge-off amount required.

Unrecoverable receivables for a German customer are to be charged off. Change the currency of the receivables and charge off the amount in dollars. The amount has increased as a result of rounding. If you specify the charge-off amount required in the header condition, the rounding difference is adjusted.

Note Note

If your documents are to be transferred immediately during the update, you should enter the header conditions in the provisional charge-off document. If immediate transfer is to be prevented, you should select the Posting block indicator in the billing document type definition for receivables charge-off.

End of the note.