True Reversal and Negative Postings

Description

As of Release 4.0A, reverse postings and adjustment postings can be indicated as negative postings . Negative postings reduce transactions figures in customer, vendor, and G/L accounts without having to reverse the document by posting a reversal document. This type of reversal is called a true reversal.

You have to specify in Customizing whether negative postings are permitted for each company code. If negative postings can be made for a company code, you can use the following functions:

Reversal

A reversal reason must be specified for reversal transactions. You can define your own reversal reasons in Customizing, and you can determine for each one whether or not negative postings are created in the reversal document.

More functions for document reversal in Financial Accounting

The system stores the reversal reason as additional information in the header of the document you reverse. This additional information, however, is entered only in documents that are reversed in Financial Accounting. Documents reversed in Invoice Verification or Billing do not receive this additional information.

If the document you reverse was already valuated, the system creates extra line items to reverse the foreign currency valuation. These items are automatically set as negative postings.

If a document you reverse contains negative postings, then the corresponding line items in the reversal document are not negative postings.

Residual Items

Each residual item is indicated as a negative posting. This prevents the residual item from increasing the debit and credit transaction figures.

The following example shows the advantage of indicating a residual item as a negative posting:

A customer makes a payment for 600.00. If this payment is used to clear an invoice for 600.00, then the credit side of the receivables account is increased by 600.00 with the clearing document.

If this payment is used to clear an invoice for 1000.00 and a residual item is created for 400.00 without indicating it as a negative posting, then the credit side of the receivables account is increased by 1000.00, and the debit side is increased by 400.00 for the residual item. If the residual item is indicated as a negative posting, the credit side is increased by 1000.00 and then decreased by 400.00 for the residual item, thus resulting in a balance of 600.00 on the credit side.

Outstanding receivables (customers) and outstanding payables (vendors) that were created according to an amount entered in the 'Difference postings' field will also be marked as negative postings.

Accrual Documents

When entering an accrual document, you have to specify the reason for the reverse posting. You can specify any one of the defined reversal reasons that allow reversal to be made using an alternative posting date.

The reason for the reverse posting is noted in the accrual document and used once the reversal is made.

Documents with Individual Negative Postings

To eliminate the effects of incorrect postings on transaction figures, you can enter adjustment documents that are comprised of line items indicated as negative postings. These types of adjustment postings can only be made using document types that permit negative postings.

If you post a line item in a document to the wrong account, for example, you can enter an adjustment document to remove the item from the wrong account with a negative posting and post it to the correct account with a normal posting.

Indicating line items you enter yourself as negative postings does not have any effect on the creation of automatic postings. Automatic postings are not indicated as negative postings when they are created. You can, however, set them as negative postings by making a supplementary account assignment. It is not necessary to set the supplementary account assignment option in the master record of the account to do this.

Change system parameters in customizing

You have to specify whether negative postings can be made for each company code.

To make this specification, go into the FI Implementation Guide (IMG) under Financial Accounting Global Settings -> Company Code in activity Enter global parameters.

You have to set the negative posting option for the document types in which you want to be able to indicate line items as negative postings.

To set this option, go to Financial Accounting Global Settings -> Document -> Document Header in activity Define document types.

You have to define reversal reasons to be able to enter reversal and accrual documents. For each reversal reason you define, you can set the option that allows negative postings to be made and the option that allows the reversal date to deviate from the posting date in the document that is being reversed.

To set these definitions, go into the Financial Accounting IMG under General Ledger Accounting -> Business Transactions -> Document Reversal, activity Permit negative posting and Define reasons for reversal.

The corresponding activities for customers and vendors are located under Accounts Receivable and Accounts Payable -> Business Transactions -> Document Reversal, activities

Permit negative posting and Define reasons for reversal.

If the indicator for negative postings appears in the line item display, you will have to create the necessary display variants or extend existing variants.

Changes to the interface

The reversal reason is entered on the first screen of each reversal transaction.

If you execute the function "Reset and Reverse" when resetting cleared items, you have to enter the reversal reason on an additional screen. The posting date and posting period can be specified for this.

The reversal reason is a new parameter for the mass reversal program SAPF080.

You indicate line items as negative postings during document entry by choosing "More date".

The negative posting indicator can be displayed in line item display.

Dependent functions

The use of negative postings results in changes in the comparison of documents and transaction figures as follows:

A debit item indicated as a negative posting reduces the amount of credit transaction figures. A credit item indicated as a negative posting reduces the amount of debit transaction figures.

These changes have been taken into account in the standard comparison programs and various standard reports (for example, SAPF070 and RFBELJ00).

Further notes

More information on negative postings in SD is available in the following Release note: Transaction-related negative adjustment .