Generation of Negative Postings in FI-AR 

Use

In a number of countries, accounting regulations or accepted business practice may require you to post some accounting documents – credit memos and reversals of invoices – as negative postings.

When you cancel an invoice or create a credit memo in Billing, the system posts the corresponding accounting document in Accounts Receivable (FI-AR) in the R/3 back-end as a negative posting.

Prerequisites

You have made the settings in Customizing for Customer Relationship Management, by choosing Billing  → Integration  → Transferring Billing Documents to Accounting  → Transfer to Accounts Receivable Accounting (FI-AR)  → Assign Document Types.

Example

You bill a company for EUR 60,000, including tax at 20%. The system posts the following accounting document:

You then realize that you have invoiced the wrong company, and cancel the invoice. The system then posts the following accounting document, with all the amounts in the negative: