Unit 4: Accounts Receivable AC010

Exercise 16: Closing Procedures in

Accounts Receivable
Exercise Objectives
AF1er completing this exercise, you will be able to:
Make adjustments to customer accounts in accounts receivable for bad debt
expense estimates
Run the balance carry forward program

Business Example
Depending on legal requirements, various procedures need to be completed in the
subsidiary ledgers before financial statements can be created in the general ledger.
Estimates of bad debt expense can be made using the value adjustment program.
At the end of the year, the balance carry forward program must be run.

Task 1: Complete value adjustments for receivables

IDES wants to make a S percent adjustment on all receivables that are overdue by
more than 30 days at the time the adjustment is made. A value adjustment key was
set up in configuration and must be entered into the master record of customers.
1. Check whether valuation adjustment key AB has also been entered in
the master record of customer Cstomer*##. If not, enter it.

Task 2: Start a valuation run

As part of closing procedures, a valuation run must be executed in order to carry
out the valuation adjustment.
1. Use today's date as the run date and your business area, B*##, as the
identification.
2. The key date is the last day of the previous month. Use the valuation method
Flat-rate individual value adjustment. Use the last day of the previous
month as the posting date and the first day of the current month as the
reversal date. The document type is SB. Remember to set the indicator to
generate postings.
3. Choose the Selection Options button and enter Cstomer*## in the
Customer Account field.

Note: In the Selection options screen, make certain you select only
your customer Cstomer*## in company code 1000 so each group
can complete the exercise on its own.

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AC010 Lesson: Customer Master Data

Activate the additional log by entering your customer, cstomer*##, in

the Customer account trace field.
4. Start the valuation run.
S. Display the valuation list. Two items should have been selected, one of
which should have been reduced in value. A value adjustment is not yet
necessary for the other item because it is not 30 days overdue.

Hint: Depending on the time of course AC010, you can also show
just one item in the amount of EUR 10,000.
If no valuations are displayed in the screen, you have made and error
somewhere. Call up the proposal log (
Display Log) from the menu bar on the initial screen to see if you
can find the error. Delete the proposal ( )
and remove the error. Restart the valuation run. Repeat this process
until valuations are displayed in the proposal.

6. Transfer the valuation to Financial Accounting (FI) .

7. Check whether the postings were made by looking at the balances of account
142100 (allowance for doubtful accounts) in company code 1000 in business
area B*##.
8. If no balance exists in this account for your business area, check your batch
jobs to see if job F107 AC010## exists. This job is created when the batch
job did not process automatically. Process this batch job by selecting Display
Errors Only. Correct any errors to finish processing the job, then re-check
the balance of account 142100.

Task 3: Optional (only works if the customer NEW*##

has been created and posted): Run the balance carry
forward program
At the end of each year, the balance carry forward program is run for balance
sheet accounts. The balances from previous years show up in the first row of
the balance report.
1. Check the balance for customer New*## for the following year. Then, run
the balance carry forward program for the following year for New*##. Re-
check the balance in the customer account again for the following year to
verify that the balance from the current year has been carried forward.

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 Unit 4: Accounts Receivable AC010

Solution 16: Closing Procedures in

Accounts Receivable
Task 1: Complete value adjustments for receivables
IDES wants to make a S percent adjustment on all receivables that are overdue by
more than 30 days at the time the adjustment is made. A value adjustment key was
set up in configuration and must be entered into the master record of customers.
1. Check whether valuation adjustment key AB has also been entered in
the master record of customer Cstomer*##. If not, enter it.
a) Choose Accounting Financial Accounting Accounts Receivable
Records .

Field Name Value

Customer Cstomer*##
Company code 1000

b) Choose Continue (enter).

c) Choose Company code data.
Select the Account management tab.
d) AB has to be entered in the Value adjustment field. If it is not there,
enter it and save the change to the master record.
e) Return to the SAP Easy Access menu.

Task 2: Start a valuation run

As part of closing procedures, a valuation run must be executed in order to carry
out the valuation adjustment.
1. Use today's date as the run date and your business area, B*##, as the
identification.
a) Choose Accounting Financial Accounting Accounts Receivable
Periodic Processing .

Field Name Value

Run on <today's date>
Identification B*##

b) Choose Enter to see the message about the status of the run (no
parameters entered as yet).
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AC010 Lesson: Customer Master Data

2. The key date is the last day of the previous month. Use the valuation method
Flat-rate individual value adjustment. Use the last day of the previous
month as the posting date and the first day of the current month as the
reversal date. The document type is SB. Remember to set the indicator to
generate postings.
a) Choose Maintain.

Field Name Value

Key date <last day of the
previous month>
Val. method 3 (Reserve for bad debt)
Currency type 10
Val. Area US
Postings Select this
Posting date <last day of the
previous month>
Rev.post.date <first day of current
month>
Document type SB(in the left section of the
screen)

3. Choose the Selection Options button and enter Cstomer*## in the

Customer Account field.

Note: In the Selection options screen, make certain you select only
your customer Cstomer*## in company code 1000 so each group
can complete the exercise on its own.

Activate the additional log by entering your customer, Cstomer*##,

in the Customer account trace field.
a) Choose Selection options.

Field Name Value

Company code 1000
Customers Select this
Customer account Cstomer*##
Customer account trace Cstomer*## (This activates
the additional log.)

b) Choose Execute. The "Valuation: Parameter" screen appears again.

c) Choose Save. The valuation run initial screen appears.

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 Unit 4: Accounts Receivable AC010

4. Start the valuation run.

a) Choose Dispatch.
b) Choose Start immediately.
c) Choose Enter to dispatch.
d) Choose Enter until you see the status that the valuation run is finished.
Remain in this screen for the next step.
S. Display the valuation list. Two items should have been selected, one of
which should have been reduced in value. A value adjustment is not yet
necessary for the other item because it is not 30 days overdue.

Hint: Depending on the time of course AC010, you can also show
just one item in the amount of EUR 10,000.
If no valuations are displayed in the screen, you have made and error
somewhere. Call up the proposal log (
Display Log) from the menu bar on the initial screen to see if you
can find the error. Delete the proposal ( )
and remove the error. Restart the valuation run. Repeat this process
until valuations are displayed in the proposal.

a) From the menu choose Valuation Value List.

b) Choose Continue past the dialog box about the program.
A list with all proposed valuations is displayed. A valuation should
now be displayed for the EUR 10,000 item.
c) Return to the initial screen by choosing the green arrow.
6. Transfer the valuation to Financial Accounting (FI) .
a) Select Forward.
b) Select Start immediately.
c) Choose Enter to dispatch.
Choose Enter until you see the message: "Transfer finished".
d) Return to the SAP Easy Access menu by typing /N in the command
field.

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AC010 Lesson: Customer Master Data

7. Check whether the postings were made by looking at the balances of account
142100 (allowance for doubtful accounts) in company code 1000 in business
area B*##.
a) Select Accounting Financial Accounting
Account Balances.

Field Name Value

G/L account 142100
Company code 1000
Fiscal year <current year>
Business area B*##

Field business area in dynamic selection choose your

business area and then save.
b) Choose Execute in the dialog box to continue.
The account should have a credit balance in the previous period. In the
current month, the posting was reversed.
8. If no balance exists in this account for your business area, check your batch
jobs to see if job F107 AC010## exists. This job is created when the batch
job did not process automatically. Process this batch job by selecting Display
Errors Only. Correct any errors to finish processing the job, then re-check
the balance of account 142100.
a) If no balance is shown in the account, call up your Batch input sessions
via the following menu path: Services Batch
Sessions.
b) See if job F107 AC010## exists. If so, process it in Display errors
only mode. As you choose Enter to view the screens with errors,
correct any errors with input posting key 50 for account number
142100 and posting key 40 for account number 80000 that are
preventing this batch job from proceeding automatically. Once the
batch job is processed, check account 142100 again to see if there is a
balance.

Task 3: Optional (only works if the customer NEW*##

has been created and posted): Run the balance carry
forward program
At the end of each year, the balance carry forward program is run for balance
sheet accounts. The balances from previous years show up in the first row of
the balance report.
1. Check the balance for customer New*## for the following year. Then, run
the balance carry forward program for the following year for New*##. Re-
check the balance in the customer account again for the following year to
verify that the balance from the current year has been carried forward.

2006/Q2 © 2006 SAP AG. All rights reserved.

Unit 4: Accounts Receivable AC010

Continued on next page

153

© 2006 SAP AG. All rights reserved. 2006/Q2

 AC010 Lesson: Customer Master Data

a) Select Accounting Financial Accounting Accounts Receivable

Account Balances.

Field name Value

Customer New*##
Company Code 1000
Fiscal year <next year>

Choose Execute in the dialog box to continue.

The following message is displayed: "No data was read for the business
year 200X".
b) Choose Enter through the message and return to the SAP Easy Access
menu.
c) Select Accounting Financial Accounting Accounts Receivable
Periodic Processing Balance
Carry forward.

Field Name Value

Company code 1000
Carry forward to Fiscal year <next year>
Select Customers Check box
Customers New*##
Test mode Deselect this

d) Choose Execute. Choose Enter past the message about the current
fiscal year.
e) Display the balance for customer New*## again via the following
menu path: Accounting Financial Accounting Accounts
Receivable
Account Balances.

Field name Value

Customer New*##
Company Code 1000
Fiscal year <next year>

f) Choose Execute. You should see the balance from the current year
carried forward to the first row of the report.

1542006/Q2 © 2006 SAP AG. All rights reserved.