Payments on written-off documents

[Former Member]

I would like to check what business process other utilities follow when you write-off receivables.  We do the following and have some complexities:

1. When we write-off receivables, we post statistical FICA docs for the same amount on the customers account.

2.  When customers pay the amount and it has to clear the statistical fica charges, we have configured posting area 1010 to direct the charges to the recovery GL account. 

However our company wants the payment amount to be split and go into different sub accounts when it is clearing the stat receivable. I don't have much flexibility in configuring 1010 posting area, so I am having to use event 0032 to post new line items for the different splits.  This is complicating the scenario and I wanted to check out if there is any other configurations we could use to direct the payments on written-off charges to different GL accounts.

I was also wondering other utilities probably don't post stat write-offs and when payment is made on written-off accounts, the payments go to clarification and they reverse the write-off before applying the payments to the original receivables.  Is this the case?

Any thoughts/suggestions on this functionality is welcome.

Thanks,

Yuvi.

[AmlanBanerjee · Accepted solution]

Hi Yuvi,

Have you checked Posting area 0050?

For all statistical transactions that you have configured the real transaction in 1010, then you

have to maintain the GL account for the real transaction in Posting area 0050 (Revenue from Charges/Interest for Clrg Stat. Receivable)

If statistical line item cleared as per the above configuration it will posted to the real GL as assigned in event 0050.

Please note that posting area 0050 is only required, where SAP hasn't given a per-defined real transaction,like for Security Deposit payments, event 0050 is not required. but if you create a statisitical entry after the write-off then, event 0050 is required so that during the clearing of the statistical entry, the revenue is realised.

The supplement only comes into picture, if you want to have a separate GL A/c and CO Assignment for the same set of customers (based on certain conditions), then in event 165 you can do that activity.

Hope it helps..

Thanks,

Amlan

[Former Member]

Thanks Amalan,

We have in fact configured 0050 for the revenue postings, which I failed to mention in the post.  However, event 165 seems to be the answer.  I think I will have more flexibility in event 165 to post to the different GLs that I require.

Thanks,

Yuvi.

[william_eastman]

Yuvi:

Receivable adjustment function is designed for this purpose - reduce all of these excess postings and processes, reduce complexity  

regards,

bill.

[Former Member]

Hi Bill,

We have the configurations for Value Adjustment implemented, but never used that functionality. It makes sense for me now to use it. However would we still need to use the write-off after the value adjustment is complete after a certain number of days or should we not even have to do the write-off at all since value adjustment is complete.??

Thanks,

Yuvi.

[william_eastman]

Yuvi:

that depends on your process.  Write off should be executed at the point when the receivables are no longer being collected. In some jurisdictions, there is a time limit after which they should be written off; in others that could be never.  Ideally, SAP expects them to be written off at some point - but that would be the final stage of the document.

regards,

bill.