Global AR-HPT:

AR Clearing and Reversal

 Procter & Gamble Nov 2003 Global AR HPT

AR Clearing: Objective

 Clear open items from the customer accounts

 Clearing related items vs. each other is important to keep
the accounts clean and up-to-date

 Procter & Gamble Nov 2003 Global AR HPT

AR Clearing: Example
AR Customer Sales
 Invoice of 1350
1350 1350

BALANCE SHEET P&L

Assets Liabilities
Accounts Sales
Customers
Receivable 1350
1350 Kmart
Products
Sold 1350

 Procter & Gamble Nov 2003 Global AR HPT

AR Clearing: Offset credits vs. debits

Customer
Customer
1350 1350
1350
AR CL&FS created a subsequent Customer
Credit Note
1350 1350

Customer

 Procter & Gamble Nov 2003 Global AR HPT

AR Clearing : Functionality

 Manual clearing F-30 “Post with clearing”

 Automatic clearing ZFCLEAR “Automatic Clearing”*

 Procter & Gamble Nov 2003 Global AR HPT

AR Clearing: Manual Clearing

 Important Watch-Out:
 Credits are not automatically cleared by SAP vs. related debits/invoice
 SAP manual clearing transaction.
 You can clear 1 or more credit items vs. 1 or more debit items

 Procter & Gamble Nov 2003 Global AR HPT

AR Clearing: Manual Clearing - Charge-off difference

Customer Customer

1350 1350

Customer disputes the item.

CBD-MDO and CFS-AR decide Allowance for Bad Debts
the item is uncollectible

1350

 Procter & Gamble Nov 2003 Global AR HPT

AR Clearing: Manual Clearing - Charge-off difference

 Important Watch-Out
 SAP “Post with clearing” transaction only (F-30) with the Transfer Posting
with clearing option.*
 Charge can be posted against another GL account (BS or P&L)
 Posting details are always keyed-in manually by the user.
 To simplify process, an account assignment model can be used.*

Demo in SAP

 Procter & Gamble Nov 2003 Global AR HPT

AR Clearing: Manual Clearing - Offset CNs vs. DNs
with residual items

Customer
Customer
1350 1310
1350
AR CL&FS created a subsequent Customer
Credit Note
1350 1310

Customer

40

 Procter & Gamble Nov 2003 Global AR HPT

AR Clearing: Manual Clearing - Offset CNs vs. DNs
with residual items
 Important Watch-Out:
 Use transaction Posting with clearing F-30 with the Split Residual Items
clearing option.
 Credits are not automatically cleared by SAP vs. related debits/invoice
 You can clear 1 or more credit items vs. 1 or more debit items

Demo in SAP

 Procter & Gamble Nov 2003 Global AR HPT

AR Clearing : Automatic Clearing

 Used to automatically clear customer open line items which

have (ZFCLEAR)
 Amounts equal but opposite signs with or without payment tolerance
 At least one field in both open line items should have the same value*
 Clearing rules can be configured, e.g. compare Allocation with Reference
content
 Fields with blank content can be excluded
 Common usage:
 Clear customer invoices vs. credit notes
 Clear customer claims vs. credit notes

 Procter & Gamble Nov 2003 Global AR HPT

AR Reversal: Objective

 Reverse an erroneous document already posted to correct

accounting postings
 Re-open cleared items, if any, with the document being
reversed

 Procter & Gamble Nov 2003 Global AR HPT

AR Reversal : Functionality

 Reversal of a normal document (FB08 – Reverse Document)

 Reversal of a payment/ clearing document (FBRA – Reset

Cleared Items)

 The document is remarked (reversal document)

 Procter & Gamble Nov 2003 Global AR HPT

AR Reversal: Of a document

 Reversal of documents coming from SD/COSMOS

 SHOULD all be reversed in SD/COSMOS system via special demand
type/group.
 The accounting postings (incldg. Inventory and COPS impact) of the
original entry are reversed accordingly.
 Reversal of documents in FI-AR (pure financial account
documents)
 Can be reversed in FI-AR only.
 All are non-product related.

 Procter & Gamble Nov 2003 Global AR HPT

AR Reversal: Of a clearing document
 Used to reverse payment or clearing documents only
 The original document is reversed and any cleared items are
restored to open status
 Select RESET and REVERSE
 DO NOT use Resetting only. This would restore items to open status but
NO accounting posting would be created by the system.

 Procter & Gamble Nov 2003 Global AR HPT

AR Reversal: Example
Original entry

Customer AR Suspense Customer

1350 1350 1350 1350

Payment was made for 1350

 Procter & Gamble Nov 2003 Global AR HPT

AR Reversal: Example
Discovers Error
Cash received from bank was actually 1400

Customer
Customer
1350

REVERSAL
REVERSAL
AR Suspense AR Suspense

1350

 Procter & Gamble Nov 2003 Global AR HPT

AR Reversal: Watch-Outs

 The posting date of the reversal document is either:

 The posting date of the original document – if the accounting posting
period of the original document is still OPEN (i.e. if reversal occurs in the
same month, or prior to the closing of the books)
 Choose reversal code 01
 The current date – if the accounting posting period of the original
document is already CLOSED (i.e. reversal occurs in a different after the
original clearing date).
 Choose reversal code 02

Demo in SAP Back to Flow

 Procter & Gamble Nov 2003 Global AR HPT