Definition

See inflation adjustment document .

Use

The system creates inflation adjustment documents automatically whenever you run any of the Inflation Accounting programs in update mode.

In some programs, the system creates and posts the documents online; in others, the system creates them and stores them in a batch input session, which you then have to process in order for them to be posted.

Structure

As with all accounting documents , the inflation adjustment document consists of a header and line items.

Header

When the system creates an inflation adjustment document, it obtains some of the information (for example, the posting date) from the entries that you make on the program selection screen, and some of the information (the document type) from the inflation method. Which information is used from where varies from program to program.

Line Items

Each document includes at least two line items, typically one to record the increase in an item's value, and one to post this increase (because it is usually considered to represent an expense or revenue) to a profit and loss account.

Each line item contains the following information:

In the Inflation Adjustment of G/L Accounts and Inflation Adjustment of Open Items in Foreign Currency programs, this information is taken from the inflation method.

In the Inflation Adjustment of Open Items in Local Currency programs, you specify the posting key on the selection screen.

The amount is calculated by the system on the basis of the item to be adjusted and your Customizing settings (see Inflation Calculation )

The system uses the Customizing settings that you have made to identify which accounts to post the adjustments to

Not all of the inflation adjustment documents require taxes to be calculated; in some case, a tax code is required for technical purposes in order to be able to post a document to a G/L account that requires a tax code.

The tax code is usually taken from the inflation method, although the Inflation Adjustment of Open Items in Local Currency programs also allow you to use the same tax code as the one in the item to be adjusted.