Inflation-Adjusted Comparative Financial Statements (SAP Library - FI Accounts Receivable and Accounts Payable)

Inflation-Adjusted Comparative Financial Statements

Use

To prepare inflation-adjusted comparative financial statements, you can use the standard financial statement report.

This function is not intended for businesses that are required to adjust their accounts for inflation for their general-purpose financial statements. It is designed for businesses that want to create comparative financial statements in which the comparison period is adjusted for inflation.

Example

You want to create a comparative balance sheet that compares the figures for January 20X2 with those of the previous year, January 20X1. The figures from the comparison period, January 20X1, are to be adjusted for the inflation between then and January 20X2.

Prerequisites

In order to use this function, you have to make the same Customizing settings that you would need to use the Inflation Adjustment of G/L Accounts program. That includes:

Defining an inflation method and assigning it to the company code

Defining an inflation index and maintaining the values accordingly

Defining a time base and exposure to inflation variant (TBE variant)

Defining inflation keys and assigning them to the G/L accounts that you want to adjust

Activities

Run the Financial Statement report as described in the standard documentation (see Creating the Financial Statements), but on the selection screen, on the Special evaluations tab, select Inflation adjust. comp. period.

It prepares the comparative statement as usual, but adjusts the comparison period for inflation using the general inflation index.