Defining FI-CA Returns

Text explaining returns and returns lot in financial transactions. Returns occur if a payment can't be completed or is queried, and a returns lot is a group of documents sent back by a bank or settled with the same bank clearing account.

The returns component enables you to process bank returns, which may occur as part of a debit memo or collection procedure or as check deposits or outgoing payments.

The return lots can be created either manually or automatically by copying return data from the electronic bank account statement file.

Returns can occur in connection with the following payment methods:

Checks
Debit memos
Credit card collections

Returns are typically the result of expired or closed accounts, insufficient funds in an account, incorrect accounts, or stopped payments on a check.

After a return has been included in a return lot, an additional document is posted. The returns document is different from a reversal document because it's posted to a clearing account.

A diagram illustrates the returns process, showing steps to cancel clearing, post charges, perform returns activities, and review returns history surrounding a central returns lot with a returns reason. Each step is represented with icons and labeled boxes indicating specific actions within each step.

First, the system determines the receivables or payables that were cleared by incoming or outgoing payments. This payment clearing can then be canceled (normal case) so that the original receivables or payables are open again. The system then generates a returns document containing the offsetting items for the items in the payment document.

Bank charges are posted in the general ledger. You can charge any bank fees to your business partners. You may choose to make your business partner liable for other charges as well. The return charges for the business partner can be posted either statistically or to the general ledger.

Possible follow-up activities include changing the item, setting a deferral date, setting a dunning or payment lock, or changing the incoming payment method (for example, from a direct debit to payment on demand).

Other activities are also possible, such as workflow, creating information for the accounting clerk or creating correspondence for the business partner. The industry solutions offer these activities, but customers can adapt them to suit their own needs.

The system records all relevant data in a returns history. This history is referred to when determining creditworthiness. The returns history is used, for example, to determine the number of returns for a business partner.

The image is a financial ledger showcasing entries under Contract Account, Bank Clearing, Receivables Returns, Receivables, Revenues, Expenses, Bank, Revenues from Returns, and Returns Clearing in a system. Various transactions, identified by numbers in brackets, are recorded with their respective amounts.

[1] Receivable posting (tax not shown)

[2] Payment in FI-CA (payment run)

[3] Payment in FI-GL (outgoing bank statement)

[4] Returns in FI-GL (incoming bank statement)

[5] Returns in FI-CA reverse clearing

[6] Post expenses from bank charges

[7] Pass on bank charges to business partner

[8] Raise and debit charges

Step [7] does not take place if bank charges cannot be passed on to the customer.

Step [8] does not take place if you choose not to levy your own charges on the customer.

Step [5] to [8] are carried out in one step.

Flowchart outlining the process for handling a return, starting with the Returns Reason and proceeding through Returns Activities, Returns Charges, and Automatic Charges Determination. Key elements include Business Partner, Contract Account, and Bank.

You can use the activity keys in customizing to define several activities that are carried out in the case of a return, such as setting payment and dunning locks. In customizing, you must assign the returns reasons given by the banks to your own, company-specific reasons. This allows you to treat different returns reasons as defined by individual banks in a uniform way.

You can assign a returns reason to a house bank only when you define the reason for the first time. Afterward, changes are possible, but not a reassignment to a house bank.

The activity key is made up of the Company Code, No. of Returns, Creditworthiness, and Tolerance Group fields.

The returns reason triggers a number of activities. It's used to determine the general ledger accounts to which the returns charges are posted (as well as the offsetting revenue account). It's also used for the bank clearing. In each case, two charge accounts and expense accounts can be used to clear charges.

History days define the maximum number of days in the past in which a posting may lie so as to be considered in the return history evaluation. If you set the value 0, all postings will be considered when viewing the returns history. The number of returns is determined from the returns history and always refers to a business partner and a contract account.

A flowchart shows the process for handling returns, detailing activities based on returns reason and creditworthiness, and includes steps such as deferral and setting payment locks. The components involve business partner, contract account, and company code, leading to various actions like changing payment methods and managing correspondence.

When defining activities to take place based on the number of returns, the system takes the first return that takes place on an account to be return number 0, not return number 1.

In case of a return, the dunning lock reason entered here is stored in the contract account master record (or in the item, if you're using an item dunning lock) of the business partner in question.

The system determines the new due date for the receivable by taking the document date of the return and adding the number of deferral days (if an entry is made in the Deferral Days field).

Dunning notices cannot be issued for an item or an account that uses a debit memo or automatic debit as the incoming payment method.

You can use event 295 in conjunction with the Other Activities indicator. For example, correspondence could be triggered.

Flowchart outlining returns activities leading to pass charges on, calculate graduated charges, and post charges statistically; returns charges leading to amount limits and graduated charge amount; automatic charges determination leading to maximum difference.

You can configure how charges are processed so that all returns fees charged by the banks are passed on to the business partner (Pass Charges On).

You can charge an extra fee for the processing of returns (Calculate Graduated Charge). Charges can be posted statistically or non statistically.

You can use posting area 0111 to assign default main and sub transactions (for both debit and credit postings).

For lot charges to be calculated and debited to a customer’s account, the amount limit (total of the return items) must be reached for the currency in question. This makes it possible to scale charges.

The maximum difference between the amount returned by the house bank and the original payment is the amount tolerated for automatic posting of charges. Provided that the difference amount is smaller than the maximum difference amount, the system always considers it to be a posted charge. If you do not specify an amount, no difference will be tolerated and posting will only take place automatically when the return amount is the same as the original payment amount.

You can use event 0270 to determine differences in charges.