Receivables and payables accounts closing consists which of the following activities: At the beginning of the fiscal year, the balance carry forward program is run, carrying forward the balances of the customer accounts to the next fiscal year. The posting periods of the old fiscal year are blocked and the special periods for closing postings are opened. Technical reconciliation guarantees that the posting of documents is technically problem-free. Balances are then confirmed, the foreign currency documents valuated, the values adjusted, and the receivables regrouped. Special periods can be closed once balance confirmation is done. Balance confirmations are generated, foreign currencies valuated, and receivables regrouped in the same way as in accounts payable accounting. Accounts Payables are cleared with Accounts Receivables.
The closing processes may vary from country to country. True False.
Balance confirmations, including reply slips, are manually created for a freely definable number of customers and vendors. It also creates a reconciliation list and a results table. True False.
Balance confirmations and reply slips are sent to the customers or vendors and the lists are forwarded to a control center. In the Internet Demo and Evaluation System (IDES), this control center is the “internal audit” department. True False.
The customers or vendors check the balance information they receive and send their reply to the control center. The replies are compared to the reconciliation list and the results are entered in the results. True False.
Reports SAPF130D and SAPF130K create dunning to and from the customers and vendors to enable you to check the balance of receivables and payables. True False.
Balance Confirmation Customizing I: The following procedures are available: Balance confirmation Balance notification Balance comparison Balance request.
For each company code, the reports display a checklist and an error list. You can not use these lists to check the receipt of balance confirmations. In the error list, the report logs the errors that occurred during the evaluation. True False.
The SAP system can not print a selection cover sheet for each report run. Alternatively, you can not use the reports to print reminders for overdue balance confirmations and inquiries. True False.
You can enter any address ID to which balance confirmations are sent or leave the field blank. The corresponding address ID must be included in the selection criteria when the program is run. For example, enter the address of the internal audit department as ID 0001 for the same company code. This ID is entered in the selection criteria of the report for balances that the internal audit is interested in. True False.
If you want balance confirmations to be sent to the auditor, Do not leave the ID field blank. True False.
During Balance Confirmation, an output check and an error list are generated per company code, not for each client. True False.
You must specify two addresses to which balance confirmations are to be sent True False.
You carry out the foreign currency valuation after creating the financial statements. True False.
The valuation includes which of the following accounts and items: Balance sheet accounts for the foreign currency, that is, the G/L accounts that you manage in a foreign currency Open items (customers, vendors, and G/L accounts) posted in the foreign currency (the line items are valuated) Assets and Inventory Items.
Report FAGL_FCV valuates open items in the foreign currency as well as open items in the foreign currency balance sheet accounts. True False.
The posting document generated by the foreign currency program is reversed automatically with the same program, on the first day of the next month. The reversal is independent of the valuation area for which the foreign currency valuation run was started. If you do not want to reverse the valuation postings (during open item valuation), you must make additional configurations for using the delta posting logic. True False.
A foreign currency valuation is not necessary if vendor accounts contain open items in a foreign currency. The amounts of these open items are translated into the local currency at the time they are entered by using the current exchange rate True False.
Some considerations regarding foreign currency valuation are as follows: The exchange rate might be different at the time of closing, and open items need to be valuated again. A program valuates the open items using the new exchange rate and enters the valuation difference in the valuated line items. It also creates the valuation posting, which is the expense from currency valuation to adjustment account for foreign currency. A valuation cannot be made by a posting to the payables account because a posting cannot be made directly to reconciliation accounts. The amount is posted to an adjustment account, which appears on the same line of the balance sheet as the reconciliation account. Correspondence and Dunning should be according to new exchange rate for correct valuation of the documents.
The FAGL_FCV report is available as of enhancement package 5 for SAP ERP (no additional business function has to be activated). The new program can be used only with General Ledger Accounting (new). In case you still have the classic G/L in use, you are working with foreign currency valuation program SAPF100. True False.
Revaluation of Items in Foreign Currencies, The following transactions are performed:
In the period that the valuation is performed (as defined by the key date), a posting is made to adjust the overall receivables balance for the change in exchange rates. This posting is reversed in the next period, to bring the balances back to the original position. A subsequent valuation or the payment clearing is then based on the original posting. The adjustment posting is made on the key date as usual, and then reversed on the following day. You can, however, define another posting date.
The valuation areas to define should not be confused with the depreciation areas in Asset Accounting (FI-AA). These valuation areas are original Financial Accounting (FI) valuation areas. True False.
You also use these valuation areas if you want to model parallel financial reporting in the SAP system. If you just need the local valuation approach as is, then you have to define only one valuation area. You can select the ID and name easily. True False.
The valuation method contains the valuation process to be used for carrying out a foreign currency valuation as part of the closing operations. True False.
In a valuation method, you make the following general specifications for the foreign currency valuation: The valuation procedure to be used, for example, Lowest Value Principle or Always evaluate How the exchange rate differences determined should be posted, for example, which document type to use Valuation criteria to be followed while making valuation of the documents The basis on which the exchange rate should be determined, for example, which exchange rate type to use.
The valuation methods can be maintained as time-dependent. But this feature is independent of any business function. True False.
The details of the Valuation – Ledger Approach are as follows: In addition to the leading ledger, you need at least one non-leading ledger. You define valuation areas (originating in FI). You define accounting principles. You assign an accounting principle to the valuation areas. You combine the accounting rules with the corresponding ledgers. You define which valuation method (example, lowest value principle or basic valuation) will be used for each valuation area in Customizing.
In practice, you may have to create several areas for local valuation because your local valuations may be the same from a technical perspective. True False.
To carry out foreign currency valuations in accounts managed on an open item basis, you define account entries for the following. Valuated exchange rate gains Losses for each reconciliation account in sub ledger accounts Exchange Rate variations are frequent so it should be monitored on daily basis.
The system posts the account entries for the realized exchange rate differences in foreign currency during the posting of the documents. True False.
The number range interval is needed to (internally) count the update runs (only relevant in relation with the new valuation FAGL_FCV transaction). But the number of the run is also displayed on the result screen of an update run. True False.
Only one interval per client is defined. The interval has to have number 01 and the number range should be as large as possible. True False.
In some countries, a cancellation posting takes place the following month. During a valuation run at the end of the fiscal year, this means an adjustment posting in another fiscal year, which is not allowed. True False.
The valuation differences are stored in the FAGL_BSBW_HISTRY table. True False.
You need to consider the following steps to understand the logic behind the new delta posting: When a vendor invoice is cleared in the new G/L, the exchange rate difference that is actually realized is not immediately entered because the clearing document is entered in all ledgers in the new G/L. The exchange rate difference to be realized may be different in different ledgers. To clear the documents with foreign currency in the new G/L, the difference amount between the original invoice date and the clearing date is always displayed or posted as the realized exchange rate difference. The correct realized exchange rate difference is then determined for each valuation area during the next foreign currency valuation run The difference is determined by using the difference amounts recorded in the FAGL_BSBW_HISTRY table and the actual exchange rate on the clearing date. Once calculated, the exchange rate difference is posted against the realized exchange rate that is already entered. This second posting has the date of the valuation run, usually the end of the month, as the posting date. You can set the indicator for using the clearing date as the reversal date to ensure that the posting date of the correction valuation run is the clearing date of the valuated item.
Use the clearing date for the reversal posting only if this is absolutely necessary because the program cannot ensure that the period is open. If the period is closed, the system issues an error message and the posting is not carried out; rather, it is saved in a batch input session. True False.
For valuation with delta posting, the next valuation run then reverses the total of the valuation postings for the line items cleared since the last valuation run. True False.
In a valuation method, which of the following is not a valuation approach for foreign currency valuation? Lowest value principle strict lowest value principle Revalue only High rate of interest principle.
How many intervals are defined for foreign currency valuation run ID per client? 0 1 2 3.
You can carry out a valuation of the balance sheet accounts of foreign currency using report FAGL_FCV. On the G/L Account Balances tab page, choose the foreign currency balance sheet accounts. True False.
You need to consider the following points when valuating foreign currency balance sheet accounts: Depending on the valuation method used and the balance of the foreign currency balance sheet account, you may end up devaluing or revaluing your accounts. You can execute the valuation run with the same selection criteria multiple times. If new transactions have been posted to the account since the last valuation run, these are valuated during the current run. Valuations are carried out on average exchange rate type.
Exchange rate differences in foreign currency balance sheet accounts are posted to various gains and losses accounts based on the exchange rate difference key that you enter in the G/L account master record. You can define these keys in Customizing. True False.
After you have executed an update run of FAGL_FCV iin a client, the new program is used manually in the future, no matter how you start the valuation. True False.
The following options are available for creating value adjustments for receivables: Enter the individual value adjustments as special G/L transaction E. Use the SAPF107V additional valuations program to carry out a flat-rate individual value adjustment. Adjust the flat-rate value by making a manual G/L account posting after you have determined the amount of the value adjustment. The posting record is as follows: Expense from flat-rate value adjustment to value adjustment. Enter the mass adjustments as per special G/L transaction M.
Doubtful receivables are individual value adjustments during year-end closing. The special general ledger method is suitable for this procedure because the transaction is entered in the customer account and posted to a special G/L account, Individual Value Adjustments for Receivables. True False.
Perform the following steps after individual value adjustment: After ascertaining that the debt is irrecoverable or that the receivable has been paid, reverse the individual value adjustment. If the debt is irrecoverable, clear the receivable from the customer account and post the amount to the account for depreciation of receivables. Adjust the Sales Tax in the posting. Adjust the Income Tax in posting.
SAPF107V enables you to perform automatic flat-rate individual value adjustments for overdue receivables. True False.
You perform the following steps during flat-rate individual value adjustment of overdue receivables: In the Accounts Receivable configuration, define the debit rate percentage (bad debt expense percentage) for a valuation adjustment key and the overdue period in days. Set up the appropriate adjustment and bad debt expense accounts for doubtful receivables in the account determination table. Assign the valuation adjustment key to the master record of any customer account that you want to include in the posting for the flat-rate individual value adjustment. Carry out periodical valuation runs to calculate the bad debt expense posting for overdue items. The valuation run produces a valuation proposal that you can change manually, if desired. If you agree with the proposal, you can transfer the valuation to the general ledger to generate the posting. The system then makes the adjustment posting for the relevant key date and the reversal posting for one day after the key date.
Doubtful receivables are mass value adjustments during year end closing True False.
You are not able to perform automatic flat rate individual adjustments for overdue receivables with enhancement package 6 anymore. True False.
Foreign currency valuation and regrouping can be completed in different ways to meet different legal requirements. The results are then posted to various accounts used by different versions of financial statements. The regrouping program is also used if the reconciliation account for a vendor was changed during the year. True False.
If General Ledger Accounting (new) is active, the FAGL_CL_REGROUP program must be used. However, there is no need to use the SAPF101 program if the customer uses classic General Ledger Accounting. True False.
You might have to regroup payables on a balance sheet for the following reasons: Receivables and payables must be listed separately on the balance sheet. Because some vendors might have a debit balance at the end of the period, you need to display their balance as a separate group in the receivables section of the balance sheet. In some countries, payables have to be grouped on the balance sheet according to their remaining life. Both regroupings are carried out using a special program. At the same time, these regroupings are removed for the first day of the next period, because regrouping is not necessary for daily processing. Re grouping is essential for receivables having same remaining life.
Before creating financial statements, you must group your receivables and payables according to their remaining life so that they are correctly displayed in the financial statements. To group them correctly, you must make adjustment postings. True False.
The FAGL_CL_REGROUP program, which can be used to regroup and sort the receivables and payables, has the following functions: It sorts receivables and payables according to their remaining life and makes the required transfer postings. It makes the required adjustment postings (for example, for changed reconciliation accounts). It determines where the transfer postings are required. When you define the sort method in Customizing, you can select the cases where receivables and payables should be regrouped.
The balance of an account does not determine whether the system displays the account as a receivable or a payable. True False.
Receivables and payables are displayed separately according to their remaining life. True False.
You can change the reconciliation account in the customer or vendor master record during a fiscal year. The report for performing this change displays all the receivables at the balance sheet key date using the new reconciliation account. The indicator concerned can be found in the FAGL_CL_REGROUP report on the Other tab page. True False.