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 Example: Reversing a Deferral Request Locate this document in the navigation structure

The following example illustrates the posting of a deferral request (including the deferral interest due) for an overdue acceptance request and the subsequent deferral request after the payments of the customer were only partly paid:

Note Note

To simplify this example, the normal approval procedure for requests (posting parked documents) has been left out. G/L account postings have also been left out.

End of the note.

Graphic: Reversing a Deferral Request

This graphic is explained in the accompanying text.

  1. The acceptance request (1) of 1000 euro (due on 01.01.2003) has not been paid by the customer. A deferral request is entered on the basis of this acceptance request. When posting deferral requests, the open item of the acceptance request (1’) is written off.

  2. The receivables of the deferral request (2) are mapped in the new document. The deferral request plans an installment payment that should be paid in two amounts of 500 euro on 01.06.2003 and 01.07.2003. In addition to this, the deferral interest of 6 euro is levied on 01.06 and 7 euro on 01.07 as further open items.

  3. The customer only pays part of the receivables by the 01.06 by paying a partial payment (3) of 250 euro on the 01.06. Further payments are not made.

  4. The deferral request is reversed. This means that the two open items of the deferral request (250 euro from the first installment and 500 euro from the second installment) and the estimated deferral interest (6 euro and 7 euro) are written off when the reversal is posted (2’). The open items are grouped together in the document as one amount of 750 euro (4).The outstanding interest (3 euro) of the partial payment made is also displayed in the document.

Result

Further processes, such as a dunning procedure, can be introduced on the basis of the outstanding receivable in the reversal document.