bad debts | Debits And Credits | Cheque

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

G/L-XXXXXX Save 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) .F103 – Receivables Transfer Posting (Yucky) . Author: admin.Chart of Accounts: SAI (Enter) Account Assignment Reconciliation A/c:XXXXXX (SD) Receivable Transfer posting (Yucky): .Accounts for account type: Customer .F8 From the menu Select -> System -> Batch Input -> Session .Select show errors only V .F104 – Reserve for Terrible Debt (Yucky) Answer: .Exit Batch input Reserve for terrible debts (Yucky): Customer A/c:XXXXXX Co.Select batch input session: SAPF103 Select process .code: XXXX Accounts group: reserves and surplus . Categories: SAP FICO Tutorials How to use transactions F103 and F104? .Batch input session name: SAPF103 .Select balance sheet option button Small text: Provision for Terrible Debts Long text: Provision for terrible debts A/c Currency: INR Rec.Code: XXXX G/L Account: XXXXXX Co.Double click Reserve .Select make batch input session check box .F103 Spl.Select process button .Posting Key:09 Posting document: DA .Select line item show check box Sort key: 031 Field status group: G067 Steps For Using Trx F103 and F104 .

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. Example 1: A receivable of 100 USD (170 DEM) is due on 03/01/1993. it clears the item and posts a new item with the specified special G/L indicator. Example 2: A credit memo for 100 USD is posted without invoice reference to the same customer account as in the last example. which in turn reduces the amount of posted provisions once you run program SAPF104. . The transfer of the credit memo reduces the amount of doubtful receivables. The reconciliation account for this receivable is 140000. 100 USD (170 DEM) is debited to account 140050 and credited to 140000. it also makes a transfer posting for them in order to reduce the amount of provision already made.&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.Step 1: OB04 : You can define here the % of provision.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 . and a new receivable is posted to the customer account using special G/L indicator “E”. You run this program again. If credit memos were posted without invoice reference to the account. It reads all open items in a customer account. The original document is cleared. You run this program on 10/01/93 using a provision method that has a transfer posting deadline of 6 months. The special G/L account is 140050. The system converts the deadline for transfer postings that you defined as months in Customizing for Financial Accounting into a key date.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. The receivable is transferred since the transfer posting deadline has been reached and the amount receivable is greater than zero. Step 2: FS00 : Creation of GL Accounts TERRIBLE DEBTS. You specify special G/L indicator “E” and posting key “09″ for the transfer posting. The postings are place into a batch input session. and it finds that a transfer posting must be made for another invoice for 50 USD. and if an item’s balance per invoice reference number is greater than zero and the transfer posting deadline is reached. A separate program (SAPF104) generates the necessary provisions for the transferred receivables.

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