Record or Clear Impairment

Use

An impairment is recorded on the level of the security or loan position .

An impairment is recorded when a permanent decrease in value becomes known.

An impairment can be carried out at the end of the month, quarter or year as well as on other days.

Integration

An impairment does not include the normal valuation steps.

If an impairment is recorded for a certain point in time when a scheduled valuation is also carried out (for example at the end of the quarter) two functions must be triggered separately:

  1. Record impairments

  2. Execute key date valuation

Prerequisites

  • Customizing for Impairments

  • You can manually enter impairment rates or values using the function in Start of the navigation path Transaction Manager Next navigation step Securities Next navigation step Accounting Next navigation step Valuation Next navigation step Impairment Next navigation step Enter Prices/Net Present Values for Special Valuation End of the navigation path (transaction TPM73).

    Define the impairment prices (securities) or impairment values (loans) for the positions you want to record impairments for.

Features

Selection

Product Groups

  • Securities

  • Loans

By choosing one or more product groups, you can select the positions for these groups.

In addition to selecting the product groups, you can use the general selections to select the individual positions.

General Selections

You can use the following general selection criteria when selecting positions:

  • Company code

    Choose the appropriate company code. The default company code is 0001. You can overwrite this if necessary.

  • Valuation area

    You can restrict the selection of positions to one valuation area.

Since the product type and valuation class are valid as position criteria (differentiation terms) for all product types, you can use these to select positions.

  • Product type

  • Valuation class

You can restrict the selection further using the following product group-dependent position criteria (differentiation terms):

Note Note

Here only the product groups selected in the Product Groups area are displayed.

End of the note.

  • Securities

    • ID number

    • Securities account

    • Securities account group

    • Portfolio

  • Loans

    • Contract number

Valuation parameters

  • Key date for impairment

Posting control

Posting Date

Alternative FI posting date

The FI posting date should only differ from the posting date in the financial subledger in exceptional cases

Posting period

Alternative FI posting period

Document date

The document date shows the date on which the original document was issued

Test Run indicator

If you run the report in test mode first you can avoid making incorrect postings.

If the indicator is not set the report is run in update mode.

Output Control

Display Positions indicator

If you set this indicator, a list of all positions relevant to your selection input is displayed after the report has been run.

You can then return to the selection screen with the back arrow if you want to change your selection criteria or, check the positions and execute the function with .

Layout

If you have defined a display variant you can select it here.

No Zero Positions indicator

If you set this indicator, the selected zero positions are not displayed.

Output

A log is generated. Additionally, you can

  • Branch to the Valuation messages

  • Display all flows

  • Display logs and messages .

The output is displayed using the SAP List Viewer .

Activities

  1. Choose Start of the navigation path Transaction Manager Next navigation step Securities Next navigation step Accounting Next navigation step Valuation Next navigation step Impairment Next navigation step Record or ClearImpairment End of the navigation path [transaction TPM70].

  2. Enter the selection criteria which the system uses to find positions for which impairments are to be recorded.

  3. Choose the impairment category :

  4. Enter the posting data and make any other settings you require.

  5. Choose Execute .

  6. The list of selected positions is displayed. If the positions were selected correctly, execute the function.

  7. The following three steps are carried out for each position:

    1. Amortization (if defined in the position management procedure)

    2. Reset of all valuations that do not affect net income in the security

    3. Write-down in security affecting net income

    4. Write-down in security affecting net income

    5. Foreign currency impairment

    6. Foreign exchange valuation of the amortized acquisition value

  8. The system displays logs and messages.

  9. Make any necessary changes to the conditions in the class data or to the loan conditions.