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 IVA and Loss on Receivables Using RBD

Use

You can use this function to:

  • Calculate individual value adjustment amounts using a defined set of rules

  • Record loss on receivables

  • Post the individual value adjustment and loss on receivables amounts to the general ledger

Integration

Loss on Receivables and BCA

If you activate the integration with the Reserve for Bad Debt (RBD) component, you need to post the loss on receivable entries in BCA first. The system then automatically updates the loss on receivables amounts in RBD. In RBD, the loss on receivables is posted to your financial accounting system.

For more information about creating loss on receivables in BCA, see Loss on Receivables .

If you use RBD, you cannot use the Take Individual Value Adjustment Off Books feature for loss on receivables. If you are using multiple accounting systems (FI), and are using the Reserve for Bad Debt (RBD) tool to aggregate accounts for a business partner, you must ensure that you do not aggregate accounts across company codes.

Individual Value Adjustments

You post the individual value adjustment amounts directly from RBD to your financial accounting system .

Prerequisites

You have activated the integration with the Reserve for Bad Debt (RBD) component in Customizing for BCA by choosing Start of the navigation path Account Management Next navigation step Individual Value Adjustment Next navigation step Activate Reserve for Bad Debt (RBD) End of the navigation path .

To maintain a record in RBD of the IVA and loss on receivable entries that were originally created in BCA, you need to transfer the values manually.

Features

  • Creation of RBD Account

    You can create an RBD account for Bank Customer Accounts (BCA) at two aggregation levels:

    • For each account in BCA

    • For each business partner who is an account holder in BCA

      In this scenario, the system creates one RBD account for all BCA accounts in which the business partner is the account holder.

  • Navigation to BCA Account

    You can navigate to the RBD account from the Basic Data tab page on the account master record.

For more information about RBD, see Reserve for Bad Debt .