Adjustment entries after terminating a contract with sales-based settlement

[Former Member]

Hi all

I have a contract(setup with sales-based rent) defined from 01/01/2009 to 07/31/2010.

The contract possesses both sales-based & non sales-based conditions.

Postings are made to all conditions through 06/30/2010 which are cleared in FI.

Now, when the contract is terminated through 12/31/2009...

All the non sales-based conditions resulted to show the adjustment entries(as planned items) in the cash flow beyond termination date i.e. from 01/01/2010 to 06/30/2010 except sales-based condition.

I have checked the configuration to find any flaws in reference flow types by adjusting sales to new versions and running RESRSECORRECT and able to find adjustment entries in cash flow successfully. Why not the same is working on termination of contract ?

I'm not even able to reverse the payments from 01/01/2010 to 06/31/2010 manually thru RESRRVSINGLE as they are cleared in FI.

Please advice. This is of high priority to me.

Regards, Sekhar

[Former Member · Accepted solution]

Perhaps resetting the cleared items will allow you to reverse the settlements.

[Former Member · Accepted solution]

Thanks for the response Eric

But at this point of time resetting is also not possible. In worst case, raising a credit memo for the amount paid from Jan'10 to Jul'10 to vendor is the only option remained. But as a result of this step, the cash flow of contract still shows payments from Jan'10 to Jul'10. I just wanted to know why can't this be fixed without reversing the settlements and why this happened only in sales-based rent case when the same is working in contracts with non-sales based rent condtions ? Is this a product error or not i'm not sure.

Thanks, Sekhar

[franz_posch · Accepted solution]

Hi Sekhar,

when cashflow items are generated out of conditions of the contract it is possible to generate follow-up postings by changing the contract end date.

But the cashflow items generated by SBS have nothing to do with conditions of the contract. This items can only be reversed by reversing the process that generated the items.

This is not a product error but is due to the design of the process.

I hope I could clarify the issue. If you have further questions please let me know.

Regards, Franz

[Former Member · Accepted solution]

Thanks Franz & Eric