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Determine Base Value

In this activity you determine the value which is to be the basis for the valuation method.

The following valuation methods are available:

1. Foreign currency valuation (method 1)
2. Interest calculation on long-term receivables (method 2)
3. Flate-rate individual value adjustment (method 3)
4. Methods 98 and 99, if you want to use your own valuation algorithms using Business Transaction Events.

Example

Receivables are discounted on the basis of the local currency amount valuated under foreign currency valuation. For discounting, enter 2 as the method and 1 as the basis.

Under individual value adjustment, the system uses the local currency amount valuated under discounting. Enter 3 as the method and 2 as the basis.

If you want to use the amount valuated by the foreign currency, enter 3 as the method and 1 as the basis.

If you do not want to use either interest calculation or foreign currency as the basis for the individual value adjustment, do not enter a value for the basis. In this case, the local currency amount is used.

Activities

Determine the base value for the valuation methods you want to use.

Further Notes

You can find additional information on flat-rate individual value adjustment and interest calculation in the R/3 Library in document "FI Closing and Reporting".