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 Posting in Accounting (FI/CO)

Purpose

This process is a partial one that is integrated into every procedure in warranty claim processing .

Warranty claims generate data that is relevant to accounting. Financial accounting (FI) is involved in the receivables/debit memos and payables/credit memos that result from Warranty Claim Processing. In cost accounting (Controlling, CO), warranty costs (and possibly also revenue) should be analyzed.

Each time, separate versions of a warranty claim are posted in accounting. (FI).The versions can be controlled automatically or manually and be transferred to ERP Accounting. You can use Customizing settings to define in which categories the versions should be posted as FI documents.

The calculation of the values of the items in a version including tax is in standard pricing , posting of the credit memos and debit memos to G/L accounts is in standard revenue account determination and the parallel posting to CO account objects is in standard CO account determination .

The control logic for calling the individual functions, on the other hand, is in Warranty Claim Processing. This decides when the FI module is called and whether a reversal must be executed beforehand. If you have already posted a version of a warranty claim for a category to FI and you want to create a new version for the same category (with FI posting), you have to reverse/cancel the old FI posting first. If you do not, the data will be posted twice in FI.

The Accounting module is used exclusively for posting receivables/payables against debtors (claimants) and creditors (reimbursers). Financial accounting processes the payments and deals with the clearing of open items.

The warranty claim category and the partner information (debtor/creditor exists)is used to decide whether a receivable/debit memo or a payable/credit memo is posted .

The version currency is used for the posting.

Prerequisites

You have executed all the steps that are necessary for pricing , revenue account determination and CO account determination .

Process Flow

The decision code in the warranty claim is the basis for postings in Accounting. There are the following cases:

  • Complete Approval by the Reimburser

    The reimburser approves 100% of the amount to which has a claim has been made. The claimant receives a credit memo of 100%, the reimburser receives a debit memo of 100%. These amounts can be posted automatically to a CO account assignment.

  • Partial Approval by the Reimburser

    The reimburser approves X% (0 - 99.9%) of the amount to which has a claim has been made. The claimant receives a credit memo of Y%, the reimburser receives a debit memo of X%. These X% and Y% can be posted automatically to a CO account assignment. The difference (Y – X) can be posted to no CO account assignment at all, automatically to a different CO account assignment or it the claim processor can distribute it manually to different CO account assignments.

  • Complete Rejection by the Reimburser

    The reimburser approves 0% of the amount to which has a claim has been made.

The cases that are processed with precrediting and for which differences occur are difficult, i.e. those cases in which the reimburser only partially approves the amount requested by the claimant. Below are some examples.

Precrediting Case with Recall of Difference

In this example, the claim processor reclaims the difference between the amount requested by the claimant, which is credited to the claimant, and the amount actually paid later by the reimburser. The difference amount is not listed separately. Only the default CO account assignment is posted.

  1. The claimant forwards a warranty claim of 500 € for a water pump (version from claimant).

  2. The claim processor writes a credit memo for 500 € (version to claimant with posting (1) in Accounting).

    Posting (1): the customer account is credited with 500 €, the warranty revenue account is debited with 500 €. These 500 € are posted to the default CO account assignment.

  3. The claim processor forwards the warranty claim of 500 € to the reimburser (version to reimburser).

  4. The reimburser only approves 450 € and receives a debit memo for this amount from the claim processor (version from reimburser with posting (2) in Accounting).

    Posting (2): the vendor account is debited with 450 €, the warranty revenue account is credited with 450 €. These 450 € are posted to the default CO account assignment.

  5. The claim processor sends an invoice for 50 € to the claimant (reversal/cancellation of the first version to claimant in posting (3), creation of a new version to claimant in posting (4)).

    Posting (3): posting (1) is cancelled/reversed.

    Posting (4): finally, the customer account is credited with 450 €, the warranty revenue account is debited with 450 €. These 450 € are posted to the default CO account assignment. The warranty revenue account has been cleared.

Note Note

CL = claimant, RE = reimburser

End of the note.
Precrediting Case with Recall of Difference and Posting to Interim Account

In this example, the claim processor reclaims the difference between the amount requested by the claimant, which is credited to the claimant, and the amount actually paid later by the reimburser. The difference amount is not listed separately. Only the default CO account assignment is posted. The claim processor would like to see the amounts in an interim account and not in the warranty revenue account as long as the processing of the warranty claim has not been completed.

  1. The claimant forwards a warranty claim of 500 € for a water pump (version from claimant).

  2. The claim processor writes a credit memo for 500 € (version to claimant with posting (1) in Accounting).

    Posting (1): the customer account is credited with 500 €, the interim account is debited with 500 €. These 500 € are posted to the default CO account assignment.

  3. The claim processor forwards the warranty claim of 500 € to the reimburser (version to reimburser).

  4. The reimburser only approves 450 €. The claim processor sends the claimant an invoice for 500 €. The reimburser receives debit memo of 450 € from the claim processor (reversal/cancellation of first version to claimant in posting (2), creation of a new version to claimant in posting (3), version from reimburser with posting (4) in Accounting).

    Posting (2): posting (1) is cancelled/reversed.

    Posting (3): finally, the customer account is credited with 450 €, the interim account is debited with 450 €. These 450 € are posted to the default CO account assignment.

    Posting (4): the interim account is credited with 450 €, the warranty revenue account is debited with 450 € (transfer posting). Finally, the warranty revenue account is credited with 450 € and the vendor account is debited with 450 €. These 450 € are posted to the default CO account assignment. The interim account and the warranty revenue account have been cleared.

    Note Note

    Transfer posting from the interim account to the warranty revenue account is controlled via the pricing procedure and the account key (see also; Pricing ).

    End of the note.

Precrediting Case without Recall of Difference and with Posting to Interim Account

In this example, the claim processor adopts the difference between the amount requested by the claimant, which is credited to the claimant, and the amount actually paid later by the reimburser. This amount is not recalled. The claim processor would like to see the amounts in an interim account and not in the warranty revenue account as long as the processing of the warranty claim has not been completed. Furthermore, the claim processor would also like to have the option of listing the amount differences separately in the warranty revenue account and posting them to a different CO account assignment .

  1. The claimant forwards a warranty claim of 500 € for a water pump (version from claimant).

  2. The claim processor writes a credit memo for 500 € (outgoing version to claimant with posting (1) in Accounting).

    Posting (1): the customer account is credited with 500 €, the interim account is debited with 500 €. These 500 € are posted to the default CO account assignment.

  3. The claim processor forwards the warranty claim of 500 € to the reimburser (version to reimburser).

  4. The reimburser only approves 450 € and receives a debit memo for this amount from the claim processor (version from reimburser with posting (2) in Accounting).

    Posting (2): the vendor account is debited with 450 €, the warranty revenue account is credited with 450 €. These 450 € are posted to the default CO account assignment.

  5. The interim account is credited with 500 €,. the warranty revenue account is debited with 450 € and 50 €. The 50 €, i.e. the difference amount, can be assigned to a different account either manually or automatically.

    Note Note

    Transfer posting from the interim account to the warranty revenue account is controlled via the pricing procedure and the account key (see also; Pricing ).

    End of the note.

    Note Note

    The difference amount is determined by using the condition value formula in the pricing procedure for pricing.

    End of the note.