Case 3: Loss on Receivables, IVA is to Remain:
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 8070 (loss on receivables) and the entry in the table of value adjusted receivables remains.
|
IVA fix before posting |
50,000 | ||||||
|
IVA posted before posting |
50,000 | ||||||
Write off on receivables |
Clearing pays/recs current accts |
||||||
50,000 |
50,000 |
||||||
|
IVA fix after posting |
50,000 | ||||||
|
IVA posted after posting |
50,000 | ||||||
Outcome
The customer still owes an amount of 50,000 DM.
An individual value adjustment for the account amounting to 50,000 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.
You have to post a payment item with transaction type 8070 (loss on receivables).
|
IVA fix before posting |
50,000 | ||||||
|
IVA posted before posting |
50,000 | ||||||
Write off on receivables |
Clearing pays/recs current accts |
||||||
30.000 |
30.000 |
||||||
|
IVA fix after posting |
50,000 | ||||||
|
IVA posted after posting |
50,000 | ||||||
Outcome
The customer still owes an amount of 70.000 DM.
An individual value adjustment for the account amounting to 50,000 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 difference between the posted IVA and the amount still owed 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 |
||||||
30.000 |
30.000 |
||||||
|
IVA fix after posting |
50,000 | ||||||
|
IVA posted after posting |
20.000 | ||||||
... and then you have to post another payment item for the difference between the amount lost and the amount posted for payment item 1 with transaction type 8070 (loss on receivables).
|
IVA fix before posting |
50,000 | ||||||
|
IVA posted before posting |
50,000 | ||||||
Write off on receivables |
Clearing pays/recs current accts |
||||||
50,000 |
50,000 |
||||||
|
IVA fix after posting |
50,000 | ||||||
|
IVA posted after posting |
20.000 | ||||||
Outcome
The customer still owes an amount of 20,000 DM.
An individual value adjustment for the account amounting to 20,000 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 difference between the amount lost and the posted IVA with transaction type 8070 (loss on receivables)...
|
IVA fix before posting |
50,000 | ||||||
|
IVA posted before posting |
50,000 | ||||||
Write off on receivables |
Clearing pays/recs current accts |
||||||
50,000 |
50,000 |
||||||
|
IVA fix after posting |
50,000 | ||||||
|
IVA posted after posting |
0 | ||||||
... and then you have to post another payment item for the remaining amount 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 |
50,000 | ||||||
|
IVA posted after run |
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.
It applies for all postings for loss on receivables that:
If the posted values for the IVA or the maintained fixed amount for the account exceed the amount owed by the customer, at the end of posting the system issues information accordingly so that these values can retrospectively be maintained, if necessary.
Currency changeover
If the account is changed over to a new currency (EUR), any fixed amount maintained is automatically converted and the amount posted as IVA to the account "IVA on receivables" is taken off the books in the old currency and put on the books in the new currency. To this end there is a special clearing account in the Customizing of the value adjustment. Since there are no payment items is this instance, the transfer posting is performed differently from the transfer posting of currency changeover for posted items.
Postings
IVA on rec. |
Clearing - currency changeover | |||
|
50,000.- DM |
||||
(1) 50,000 DM |
50,000 DM (1) | |||
|
25,000 EUR (2) |
(2) 25,000 EUR |
|||
(1) Old currency off books
(2) New currency on books