Inflation Adjustment of G/L Accounts (SAP Library - FI Accounts Receivable and Accounts Payable)

Inflation Adjustment of G/L Accounts

Use

You use this program to adjust G/L accounts for inflation. It calculates the inflation adjustment required for each account and makes the appropriate adjustment postings.

Prerequisites

If you are using this program for the first time, you may have to run the Changing of Last Adjustment Dates program.

Features

To access the program, from the SAP Easy Access screen, choose Accounting → Financial Accounting → General Ledger → Periodic Processing → Closing → Valuate → Inflation Adjustment of G/L Accounts.

Selection

On the selection screen, you specify:

Which G/L accounts you want to adjust for inflation adjustment
Which fiscal period you want to adjust them up to
The parameters for the adjustment postings

Output

The system:

Calculates the inflation on the G/L accounts

The following are handled differently:

Accounts adjusted using the balance method (see also Adjustment of Balances in Foreign Currency)

Accounts adjusted using the line item method

Normally, only line items in local currency are adjusted; those in foreign currency are left to be valuated using the standard program (see Valuation of Open Items in Foreign Currencies). However, it is possible valuate open items in foreign currency using this program, if you select the indicator on the selection screen. However, with this program, you can only use one valuation method. With the other, you have a range of methods.

If you adjust the open items in foreign currency, the inflation adjustment amount is split as when you adjust balances in foreign currency.

Determines which accounts to post the adjustments to

When you adjust your G/L accounts for inflation, there are several instances in which you might want to make a compound posting. The system supports these as follows:

Balances or items adjusted using a specific inflation index

Depending on your Customizing settings, the inflation expense or revenue is split between the specific inflation gain or loss and the general inflation gain or loss. However, if you do not want the amount to be split, it does not have to be.

Balances or items denominated in foreign currency

Here the expense or revenue is split between the exchange rate gain or loss and general inflation gain or loss.

Interest on interest-bearing accounts

Here, the inflation expense or revenue is split between the interest earned and general inflation gain or loss.

Creates a batch input session with the inflation adjustment documents (update mode only)

Note

Even if your company code works with parallel currencies, the inflation adjustments are only made in the local currency.

Activities

As with all programs, we recommend that you execute it in test mode until you are sure that the results are correct. For these purposes, the program allows you to cross-check the balances of your monetary and nonmonetary accounts.

Once you have run the program, you process the batch input session. The system then:

Posts the inflation adjustment documents

Updates the last adjustment date

Accounts adjusted using the balance method have the date stored at account level only. To check an account's last adjustment date, use the Changing of Last Adjustment Dates program.

Accounts adjusted using line item method have this information stored in the G/L account and the line items. The date in the G/L account is for information purposes only: It is the date in the line items that counts when you adjust them the next time.

See also:

Use of provisional inflation indexes

Adjustment of accounts with interest indicators