Case 2: Loss on Receivables, IVA is to be Taken Off the Books
Assuming a current account credit of 100,000 DM was granted, but in 1998 changes in the economic situation have led to a risk amounting to 50,000 DM. The value adjustment is posted in 1998:
Addition to the IVA in 98.
|
IVA fix before run |
50,000 | ||||||
|
IVA posted before run |
0 | ||||||
IVA on rec. |
Write off on receivables |
||||||
|
50,000 |
50,000 |
||||||
|
IVA fix after run |
50,000 | ||||||
|
IVA posted after run |
50,000 | ||||||
The loss on receivables occurs in 1999 in the expected amount (50,000 DM) and this needs to be posted.
A payment item is posted with transaction type 8080 (loss on value adjusted receivables) and the entry in the table of value adjusted receivables is deleted.
|
IVA fix before posting |
50,000 | ||||||
|
IVA posted before posting |
50,000 | ||||||
IVA on rec. |
Clearing pays/recs current accts |
||||||
50,000 |
50,000 |
||||||
|
IVA fix after posting |
50,000 | ||||||
|
IVA posted after posting |
0 | ||||||
Outcome
The customer still owes an amount of 50,000 DM.
An individual value adjustment for the account amounting to 0 DM is still posted.
The loss on receivables occurs in 1999, less than expected (50,000 DM), but an amount of 30,000 DM is to be posted as loss on receivables.
A payment item has to be posted with transaction type 8080 (loss on value adjusted receivables); the system maintains the value for the IVA fix.
|
IVA fix before posting |
50,000 | ||||||
|
IVA posted before posting |
50,000 | ||||||
IVA on rec. |
Clearing pays/recs current accts |
||||||
30,000 |
30,000 |
||||||
|
IVA fix after posting |
20,000 | ||||||
|
IVA posted after posting |
20,000 | ||||||
Outcome
The customer still owes an amount of 70,000 DM.
An individual value adjustment for the account amounting to 20,000 DM is still posted.
The loss on receivables occurs in 1999, more than expected (50,000 DM), and an amount of 80,000 DM is to be posted as loss on receivables.
First you have to post a payment item for the whole value adjustment with transaction type 8080 (loss on value adjusted receivables)...
|
IVA fix before posting |
50,000 | ||||||
|
IVA posted before posting |
50,000 | ||||||
IVA on rec. |
Clearing pays/recs current accts |
||||||
50,000 |
50,000 |
||||||
|
IVA fix after posting |
0 | ||||||
|
IVA posted after posting |
0 | ||||||
... ... and then you have to post another payment item for the remaining amount with transaction type 8070 (loss on receivables).
|
IVA fix before posting |
0 | ||||||
|
IVA posted before posting |
0 | ||||||
Write off on receivables |
Clearing pays/recs current accts |
||||||
30,000 |
30,000 |
||||||
|
IVA fix after posting |
0 | ||||||
|
IVA posted after posting |
0 | ||||||
Outcome
The customer still owes an amount of 20,000 DM.
An individual value adjustment for the account amounting to 0 DM is still posted.
The loss on receivables occurs in 1999 in the full amount (100,000 DM), and an amount of 100,000 DM is to be posted as loss.
First you have to post a payment item for the whole value adjustment with transaction type 8080 (loss on value adjusted receivables)...
|
IVA fix before posting |
50,000 | ||||||
|
IVA posted before posting |
50,000 | ||||||
IVA on rec. |
Clearing pays/recs current accts |
||||||
50,000 |
50,000 |
||||||
|
IVA fix after posting |
0 | ||||||
|
IVA posted after posting |
0 | ||||||
... and then you have to post another payment item for the remaining amount with transaction type 8070 (loss on receivables).
|
IVA fix before posting |
0 | ||||||
|
IVA posted before posting |
0 | ||||||
Write off on receivables |
Clearing pays/recs current accts |
||||||
50,000 |
50,000 |
||||||
|
IVA fix after posting |
0 | ||||||
|
IVA posted after posting |
0 | ||||||
Outcome
The customer still owes an amount of 0 DM.
An individual value adjustment for the account amounting to 0 DM is still posted.