This solution enables you to:
Adjust G/L accounts for inflation
Adjust open payables and receivables
Prepare financial statements adjusted for inflation
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 Inflation Accounting ) and Materials Management (MM) (see Replacement Cost Valuation (Inflation) ), depending on your requirements.
All the functions described in the following documentation are for high-inflation countries where you are required to adjust your accounts at regular intervals.
Customizing
In order to be able to work with the solution, you make the appropriate Customizing settings in Customizing for Financial Accounting (FI), by choosing
After you have gone into production operation, you must continue to enter the inflation indexes in Customizing as they are published.
Master Data
As regards the master data, you have to assign an inflation 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.
Day-to-Day 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 must assign it to the line item when you post the document.
Closing
When the time comes for you to adjust your accounts, at period end, you run the appropriate programs to adjust various accounts for inflation:
Reporting
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 create inflation-adjusted comparative financial statements .