Describing Doubtful Entry and Value Adjustment

Objective

After completing this lesson, you will be able to post a doubtful entry and a value adjustment

Doubtful Entry and Value Adjustment

Diagram illustrating financial document processing, showing the flow from an FI-CA Document through doubtful entry and value adjustment to mass run transfer posting of corrected receivables, concluding with an FI Document.
Diagram illustrating the adjustment of receivables according to age with values for overdue periods of 60 and 90 days and corresponding percentage adjustments of 40% and 60%. The image shows business partner values, receivables, value adjustments, and value adjustment expenses.

You can use mass transaction FPRW to carry out doubtful entries and individual value adjustments for receivables of a certain age automatically.

You can define several value adjustment variants according to which of the doubtful entries and individual value adjustments are to be made.

You can use a value adjustment variant to define from which age receivables are to be set as doubtful entry or the value is to be adjusted individually. The due date is used to determine the age of a receivable.

You can process an item in different ledger groups in different ways by marking it as doubtful or adjusting an individual value. To do so, use the valuation areas that each refer to one ledger group.

You can use the following transactions to carry out activities based on the valuation area:

  • FPZW Adjust Receivables
  • FPRW Adjust Receivables According to Age
  • FPRV Adjusted Receivables Transfer
An accounting flowchart for contract accounts detailing receivables, revenues, taxes, and various adjustments. It includes amounts for receivables, payment, tax, and IVA, highlighting the valuation area GAAP adjustments.

[1] Receivable Posting

[2] Payment in FI-GL (incoming bank statement)

[3] Payment in FI-CA (payment lot processing, partial payment)

[4] Mark the receivable as doubtful

[5] Individual value adjustment

Steps [4] and [5] generate FI-CA documents without business partner items, which are relevant only for general ledger accounting.

Post a Doubtful Entry and a Value Adjustment

ExerciseStart Exercise

Business Example

Your business partner might not be able to pay their invoices in future.

You want to post these doubtful receivables to a separate account.

You want to post individual value adjustments as part of the year-end closing.

Note

In this exercise, the value ## should be replaced with your group number.

Preparation

The trainer should call transaction FPRB.

The trainer should execute the report for company code 1010 and delete the Simulation flag.

Task 1: Post a Doubtful Entry and Transfer the Posting

Steps

  1. Start the SAP Fiori Display Account Balance app (transaction FPL9).

    1. Choose the Information tile group.

    2. Choose the Display Account Balance tile.

  2. Display the account of business partner ac240-##h using the following data:

    Initial Data

    FieldValue
    Business Partnerac240-##h
    List TypeALLES All Items
    Line Layout013 Line Item Display

    1. On the initial screen, enter the values from the Initial Data table.

    2. Choose Continue to check the basic list.

      There are two overdue items 6000/0010 displayed.

    3. Choose Back twice.

  3. Start the SAP Fiori Adjust Receivables app (transaction FPZW).

    1. Choose the Closing tile group.

    2. Choose the Adjust Receivables tile.

  4. Post a doubtful entry for business partner ac240-##h.

    Display the correction in the corresponding receivable document.

    Initial Data

    FieldValue
    Business Partnerac240-##h
    CurrencyEUR
    Valuation AreaYNC Customer

    1. On the initial screen, enter the values from the Initial Data table.

    2. Choose Make Correction.

      You access the Adjust Receivables Execute screen.

    3. In the Open Items table, select the first open item.

    4. Choose Mark as Doubtful.

      In the Corrected Items table, the reason Y3 Danger of Losses is proposed.

    5. Choose Save.

    6. Choose Back.

    7. On the initial screen, choose Display Correction.

    8. In the Corrected Items table, double-click the document number.

      You access the Document Item screen.

    9. Choose Corrections in the lower part of the screen.

    10. In the Valuation Area dialog box, choose Continue.

      You access the Corrected Items table again.

      The status Entered as Doubtful is displayed.

    11. Choose Back three times.

  5. Start the SAP Fiori Transfer Receivable Adjustments app (transaction FPRV).

    1. Choose the Closing tile group.

    2. Choose the Transfer Receivable Adjustments tile.

  6. Transfer the doubtful receivable of business partner ac240-##h to a separate account.

    Run Parameters

    FieldValue
    Date IDcurrent date
    Run IDDE##

    Selection Data

    FieldValue
    Business Partnerac240-##h
    Company Code1010
    Company Code Selection2 With Valuation Areas
    Valuation AreaYNC Customer
    Reconciliation Keyproposed by the system
    Document Datecurrent date
    Posting Datecurrent date
    Create Transfer Posting forDoubtful Entry

    Log Data

    FieldValue
    Problem Class4 Additional Information

    1. In the Run ID area, enter the values from the Run Parameters table.

    2. Select Enter.

    3. In the General Selections tab, enter the values from the Selection Data table.

    4. On the Log tab, enter the values from the Log Data table.

    5. Choose Save.

    6. Choose Menu → Program Run → Schedule.

    7. In the Schedule dialog box, select Start Immediate and choose OK.

    8. Go to the Log tab.

    9. Choose Refresh until the transfer is completed.

    10. Choose Application Log.

    11. In the Info Messages column, select the number.

    12. Note the transfer posting document number.

    13. Choose Back three times.

  7. Start the SAP Fiori Display Document app (transaction FPE3).

    1. Choose the Document tile group.

    2. Choose the Display Document tile.

  8. Display the created FI-CA document and the assigned FI-GL ledger group.

    1. On the initial screen, enter the noted transfer posting document number.

    2. Press Enter.

      You access the Document Overview screen.

      In the Summarized G/L Items table, the posted G/L accounts are displayed.

    3. In the Summarized G/L Items table, double-click any row.

      You access the Document G/L Item screen.

    4. Go to the Account Assignment tab.

      The 0L Leading Ledger ledger group is assigned.

    5. Choose Back three times.

Task 2: Post an Individual Value Adjustment and Transfer the Posting

Steps

  1. Start the SAP Fiori Adjust Receivables app (transaction FPZW).

    1. Choose the Closing tile group.

    2. Choose the Adjust Receivables tile.

  2. Enter the following data:

    Initial Data

    FieldValue
    Business Partnerac240-##h
    CurrencyEUR
    Valuation AreaYNC Customer

    1. On the initial screen, enter the values from the Initial Data table.

    2. Choose Change Correction.

      You access the Adjust Receivables Change screen.

    3. In the Corrected Items table, select the IVA indicator.

    4. In the Corrected Items table, enter the value 100% in IVA Percentage Rate.

    5. Choose Save.

    6. Choose Back.

  3. Start the SAP Fiori Transfer Receivable Adjustments app (transaction FPRV).

    1. Choose the Closing tile group.

    2. Choose the Transfer Receivable Adjustments tile.

  4. Transfer the adjustment of business partner ac240-##h to a separate account.

    Run Parameters

    FieldValue
    Date IDcurrent date
    Run IDVA##

    Selection Data

    FieldValue
    Business Partnerac240-##h
    Company Code1010
    Company Code Selection2 With Valuation Areas
    Valuation AreaYNC Customer
    Reconciliation Keyproposed by the system
    Document Datecurrent date
    Posting Datecurrent date
    Create Transfer Posting forIndividual Value Adjustment

    Log Data

    FieldValue
    Problem Class4 Additional Information

    1. In the Run ID area, enter the values from the Run Parameters table.

    2. Select Enter.

    3. On the General Selections tab, enter the values from the Selection Data table.

    4. On the Log tab, enter the values from the Log Data table.

    5. Choose Save.

    6. Choose Menu → Program Run → Schedule.

    7. In the Schedule dialog box, select Start Immediate and choose OK.

    8. Go to the Log tab.

    9. Choose Refresh until the transfer is completed.

    10. Choose Application Log.

    11. In the Info Messages column, select the number.

    12. Note the transfer posting document number.

    13. Choose Back three times.

  5. Start the SAP Fiori Display Document app (transaction FPE3).

    1. Choose the Document tile group.

    2. Choose the Display Document tile.

  6. Display the created FI-CA document and the assigned FI-GL ledger group.

    1. On the initial screen, enter the noted transfer posting document number.

    2. Select Enter.

      You access the Document Overview screen.

    3. In the Summarized G/L Items table, the posted G/L accounts are displayed.

    4. In the Summarized G/L Items table, double-click any row.

      You access the Document G/L Item screen.

    5. Go to the Account Assignment tab.

      The 0L Leading Ledger ledger group is assigned.

    6. Choose Back three times.

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