Making Individual Value Adjustments for Doubtful Receivables

Use

In the previous transaction you posted a customer invoice. We assume that the customer has not paid the invoice by the end of the year. You doubt whether this receivable will ever be paid, so you make a transfer posting for the receivable to an account for individual value adjustments.

For more information about this process, see .

Procedure

1. Call up the transaction as follows:

Menu Path	Accounting ® Financial Accounting ® Accounts Receivable ® Document Entry ® Other ® Intern.transf.psting ® Without Clearing
Transaction Code	F-21

2. Enter the following data:

Field	Europe	North America
Document date	Last day of current period	Last day of current period
Company code	1000	3000
Posting date	Last day of current period	Last day of current period
Currency	EUR	USD
PstKy	19	19
Account (customer)	1320	3140
Sp.G/L	E (special G/L indicator for individual value adjustment)	E (special G/L indicator for individual value adjustment)

The E indicator tells the system that this is a special general ledger transaction. This means that the amount is not posted to the customer’s normal reconciliation account but to a special account instead.

The customer’s reconciliation account is 140000. The item you posted in the last transaction is also posted to this account. Using the individual value adjustment, you transfer the item from account 140000 (domestic customer receivables) to account 142000 (individual value adjustments to customer receivables.

3. Choose .

The system tells you that the document date is in the future.

4. Confirm the message with .
5. Enter the following data:

Field	Europe	North America
Amount	12,000.00	12,000.00
Due on	30. of the following month	30. of the following month
Text	Value adjustment	Value adjustment
PstKy (G/L account)	40 (Posting key)	40 (Posting key)
Account (G/L account)	210100 (Expense from individual value adjustment)	210100 (Expense from individual value adjustment)

6. Choose .
7. Enter the following data:

Field	Europe	North America
Amount	*	*
Tax code	A0 (no tax procedure)	S0 (no tax procedure)
Value date	Last day of current period	Last day of current period

8. Choose .
9. Make a note of the document number.
10. Choose .
11. In the Exit Editing dialog box, choose Yes.