This solution enables you to:
In addition to the above functions, these financial statements also draw on the information from the Inflation Accounting solutions for Asset Accounting (FI-AA) (see
All the functions described in the following documentation are for high-inflation countries where you are required to adjust your accounts at regular intervals.
In order to be able to work with the solution, you make the appropriate Customizing settings in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings → Inflation Accounting.
After you have gone into production operation, you must continue to enter theinflation indexes in Customizing as they are published.
As regards the master data, you have to assign aninflation key to each G/L account or reconciliation account that you want to adjust for inflation when you come to carry out the closing activities.
There is little to do in the way of day-to-day activities. However, if you require specific line items (in any form of document) to be adjusted for inflation using a specific inflation index, you mustassign it to the line item when you post the document.
When the time comes for you to adjust your accounts, at period end, you run the appropriate programs to adjust various accounts for inflation:
The adjustments that you make in the closing activities automatically flow into the general ledger, and thus into any financial statements that you prepare. You may, however, need to customize your system so that you can prepare two sets of financial statements,adjusted and unadjusted.
You can also createinflation-adjusted comparative financial statements.