Flat Remainder Cleanup

Use

You can use this function to post expected receivable losses separately, at the end of the year, and to identify them separately at fiscal year-change or in the info system.

Prerequisites

If you would like to represent remainder cleanup fiscally, then you must only create one document type in the system.

However, if you would like to use both fiscal and business accounting, then you must partly assign other G/L accounts to the FM account assignments that you post in the flat remainder cleanup.

Features

From a system viewpoint, the flat remainder cleanup works as a Clearing Request . The only difference is that you can assign other G/L accounts in Customizing for the Request Type Flat Remainder Cleanup to the FM account assignments used.

Example Example

Business tax revenues (purely fiscal view)

A local authority has business tax receivables of 100,000 EUR. An acceptance request is posted for the business tax receivable to the customer “Citizen” and the FM account assignment “Business tax”. In the customer master record, the reconciliation account is ”Receivables saved”. In the G/L account assignment table, the G/L account “Sales revenues” is assigned to the FM account assignment “Business tax”. The program posts the following accounts:

This graphic is explained in the accompanying text.

Past experience has shown that 10% of these receivables are not included. At the year end of the year, the business tax is therefore corrected down by 10,000 EUR. The local authority therefore enters a flat remainder cleanup to this amount (sender FM account assignment: business tax, receiver FM account assignment: remainder cleanup. The local authority has maintained a separate G/L account in Customizing for the request type ”flat remainder cleanup”. The program therefore takes the G/L accounts that apply to all request types. In the example these are:

End of the example.

Assigning FM Account Assignment to G/L Account

FM account assgmt	G/L account
Business tax	Sales revenues
Remainder cleanup	Setting in flat valuation adjustment

Note Note

When posting the request of the type Flat remainder cleanup the program posts the following accounts:

This graphic is explained in the accompanying text.

On the one hand, the correction of the receivable should not directly reduce the account “Sales revenues”, on the other hand, the remainder cleanup in the business accounting is not posted directly in the “Credit” of the receivables account, but using a special correction account.

End of the note.

To find out how to integrate fiscal and business accounting correctly, read Remainder Cleanup: Integration of Accounting .