How do you configure terrible debts in FI module?

The procedure for Terrible debt configuration:Define Methods: SPRO / Financial Accounting / Accounts Receivables & Payables / Business
transactions / Closing / Valuate / Reserve for terrible debts
- OB04
- Double click define methods
- Select New entries button
Prov Period Months Percent1 M
SAI
1
10
2
20
Save
Creation of Terrible Debts Account: FS00

Percent2 M
3
30

Percent3 M
4
100

Percent4

Co.code: XXXX
- Select with template button G/L A/c:XXXXXX Co.Code : XXXX
Account group: Administration
- Select P & L Radio button
Small text: Terrible debts Long text: Terrible debts
- Select control tab button Current currency: INR
- Select only local currency check box
- Select line item check box, Sort key:001 Field status variant: G001
- Save
Define Accounts for Reserve & Terrible Debts:
- OBXD
SPRO / Financial Accounting / Accounts Receivables & Payables / Business transactions /
Closing / Valuate / Define Accounts for Reserve & Terrible debts
Chart of Accounts: XXXX
PROVISION METHOD
XXX XXXXXX

DEBIT
XXX

CREDIT
XXX

Select rules tab button Accounts are determined based on

- Select
Debit/Credit check box 40/50
- Select provision method check box
- Save
Special G/L Account:
- FBKP
Double click Special G/L
Account Type Special G/L Special G/L Indicator Description
D
E
Reserve
Reserve for Terrible debts

Double click Reserve

- Chart of Accounts: SAI (Enter)
Account Assignment
Reconciliation A/c:XXXXXX (SD)

Spl.G/L-XXXXXX

Save

Receivable Transfer posting (Yucky):

- F103
Accounting / Financial Accounting / Accounts Receivable / Periodic processing / Closing /
Value / Receivable transfer posting (Yucky)
Customer A/c:XXXXXX
Provision method: XXXX
Special G/L Indicator for Debit Rec: E (Reserve for terrible debts)
- Select make batch input session check box
- Batch input session name: SAPF103
- Posting Key:09 Posting document: DA
- F8
From the menu Select -> System -> Batch Input -> Session
- Select batch input session: SAPF103 Select process
- Select show errors only V
- Select process button
- Exit Batch input
Reserve for terrible debts (Yucky):
Customer A/c:XXXXXX Co.Code: XXXX G/L Account: XXXXXX Co.code: XXXX
Accounts group: reserves and surplus
- Select balance sheet option button
Small text: Provision for Terrible Debts Long text: Provision for terrible debts
A/c Currency: INR Rec.Accounts for account type: Customer
- Select line item show check box
Sort key: 031 Field status group: G067

Steps For Using Trx F103 and F104

, Author: admin, Categories: SAP FICO Tutorials

How to use transactions F103 and F104?

- F103 Receivables Transfer Posting (Yucky)
- F104 Reserve for Terrible Debt (Yucky)
Answer:

Step 1: OB04 : You can define here the % of provision.

Step 2: FS00 : Creation of GL Accounts
TERRIBLE DEBTS,PROV FOR TERRIBLE DEBTS-NORMAL ACCOUNTS(EXP & LIAB)
TERRIBLE DEBT RECON Account AND RESERVE FOR TERRIBLE DEBT RECON
ACCOUNTS (Both CUST Recon G067)
Step 3: FD01 Make customer
Step 4: F-22 - Post INVOICES
Step 5: OBXD TERRIBLE DEBT TO PROV FOR TERRIBLE DEBT
Step 6: OBXY SDRS TO TERRIBLE DEBT RECON(In OBXY, Give alternative GL
accounts for Spl GL Ind,&H0D
E is SAP delivered Spl GL ind available for value adjustments)
Step 7: F103 DRS TO RECON
Step 8: F104 BD TO PROV TERRIBLE DEBT
Step 9: F-28 BANK TO CUST (E -indicator)(RESIDUAL OR PARTIAL PAYMENT IN
EACH INVOICE)
Notes:
The program transfers doubtful receivables to a special G/L account. A separate program
(SAPF104) generates the necessary provisions for the transferred receivables.
It reads all open items in a customer account, and if an items balance per invoice reference
number is greater than zero and the transfer posting deadline is reached, it clears the item and
posts a new item with the specified special G/L indicator. If credit memos were posted without
invoice reference to the account, it also makes a transfer posting for them in order to reduce the
amount of provision already made.
The system converts the deadline for transfer postings that you defined as months in
Customizing for Financial Accounting into a key date.
The postings are place into a batch input session.
Example 1:
A receivable of 100 USD (170 DEM) is due on 03/01/1993. You run this program on 10/01/93
using a provision method that has a transfer posting deadline of 6 months.
You specify special G/L indicator E and posting key 09 for the transfer posting. The
reconciliation account for this receivable is 140000. The special G/L account is 140050.
The receivable is transferred since the transfer posting deadline has been reached and the amount
receivable is greater than zero.
The original document is cleared, and a new receivable is posted to the customer account using
special G/L indicator E.
100 USD (170 DEM) is debited to account 140050 and credited to 140000.
Example 2:
A credit memo for 100 USD is posted without invoice reference to the same customer account as
in the last example.
You run this program again, and it finds that a transfer posting must be made for another invoice
for 50 USD.
The credit memo for 100 USD is also transferred since the total amount of doubtful receivables
that are already posted and that still need to be posted (100 USD in example 1 and 50 USD in
example 2) is greater than the credit memo amount. The transfer of the credit memo reduces the
amount of doubtful receivables, which in turn reduces the amount of posted provisions once you
run program SAPF104.