Doubtful customers

In order to convert a receivable to doubtful for a customer to Factoring, we should use transaction FB05 in PI1 and follow the steps below:

Document date: Today's date
Type: DO                                                                              Reference: Invoice Reference

Company code – 0231
Currency – Currency of the invoice

Then press choose open items

Add the customer account and press process open items.

Select the invoice to be converted to Doubtful.

Then press back.

PstKy: 09                                                             Account: Customer number                                                                                 SGL Ind: D

Press Enter.

Amount: Same as invoice

Business Area (Mandatory): 

For PF1 invoices check in local ERP for the BA,

For WP1 invoices use transaction Z3F_FA_AR_FIND_BA in PI1 to determine it using the sales order.

Due on: Today's date

Assignment: same as invoice

Text: Doubtful + Invoice Reference

Then Simulate

If all is correct it is ok to save.

On account, the invoice was replaced by the DO document with special GL indicator D.

The GL account is now 2270000000.

See example (partial payment already on account)

Since there will be a residual that should remain in Doubtful use FB05 with payment dates (if not possible, use 1st day of the month)

Document type: DO              Cc:0231             Currency: of invoice

Assignment: Invoice Reference 

Doc Header text: Ticket with the instructions of CM

Press Enter

Process open items with Special GL indicator D or O (some older items might have O - Check the customer account to confirm)

Select the item in Doubtful to be cleared and the partial payment

Use the Residual items tab to add the residual amount and reason code AR 

Simulate.

There will be 3 lines, for the payment, for the item cleared and for the residual Doubtful which will have the same data as the original Doubtful.

Save.

On the account there will be the new line for the residual.

Open FB05 transaction in PI1:

The fields should be filled as below:

Document and Posting date: Request date
Document type: E1 

Company code: 0231
Currency: Currency of the invoice
Reference: Invoice Reference
Doc. Header Text – Ticket XXXXX

PstKy: 19
Account: Customer account number                                            SGL Ind: E

Click Enter.

The following screen pops-up: 

Fill the fields as below:

Amount
Business area: 

For PF1 invoices check in local ERP for the BA,

For WP1 invoices use transaction Z3F_FA_AR_FIND_BA in PI1 to determine it using the sales order.

Due on: request Date
Assignment: same as original invoice 

Text: Provision + Invoice Reference

Pst Key: 40                        

Account: 6330000000

Press Enter.

Trans. Type:  

Press Enter

Amount: according to CM request (usually 100% of Invoice)

Business Area: Same as previous screens

Assignment: Customer number

Text: Provision + Invoice Reference

For the cost center press the search icon  :

Add the 1st 3 digits of the BA between *

Controlling Area: Fini

Company Code: 0231

Cost center category: R

Press enter and select it

All the information is now fulfilled

Simulate

If all the information is correct hit Save

Open FB05 transaction in PI1:

The fields should be filled as below:

Document and Posting date: Request date
Document type: E1 

Company code: 0231
Currency: Currency of the invoice
Reference: Invoice Reference
Doc. Header Text – Ticket XXXXX

PstKy: 09
Account: Customer account number                                                 SGL Ind: E

Click Enter.

The following screen pops-up: 

Fill the fields as below:

Amount: same as original Provision (see below in case of partial reduction)

Business area: 

For PF1 invoices check in local ERP for the BA,

For WP1 invoices use transaction Z3F_FA_AR_FIND_BA in PI1 to determine it using the sales order.

Due on: request Date
Assignment: same as original invoice 

Text: Provision + Invoice Reference

Pst Key: 50                        

Account: 6331000000

Press Enter.

Trans. Type:

• Flow 25  : if the original provision was booked within the same fiscal year and the reverse is for the total or partial amount of the provision
• Flow 35  : for the reversal when we book in loss the invoices (we will never have payments from the customer)
• Flow 36  : for the reversal when the customer paid invoices or a credit note is issued.

Amount: Full or partial of original Provision 

Business Area: Same as previous screens

Assignment: Customer number

Text: Provision + Invoice Reference

For the cost center press the search icon  :

Add the 1st 3 digits of the BA between *

Controlling Area: Fini

Company Code: 0231

Cost center category: R

Press enter and select it

All the information is now fulfilled

Simulate

If all the information is correct hit Save

In case it is not a full cancellation of provision but just a reduction (customer partially paid) proceed with following the entries:

• Pst Key 09 Customer account Special GL E for Full amount of provision with Flow F36
• Pst Key 19 Customer account  Special GL E for residual amount of provision with Flow F36
• Pst Key 50 GL 6331000000

Clear the provision Entries on customer account F-32

Account: Customer account number   

Clearing date: Today's date

Company code: 0231 

Currency: EUR

Special GL Indicator: E

Select the E1 documents to be off-set and Save.

Only for Debit balance

Use Z3F_FA_BAD_DEBT_WO transaction

You can search by customer number or document or run the transaction with no info in the fields and it will show all open doubtful contracts.

Special GL Ind: D (or O for some older cases)

Example without selection options:

In this case all customers having doubtful contracts will be open and it is possible to select the items by selecting the line. However two validations are defined in the transaction:

• All the documents selected must belong to same customer;
• All the documents selected must have same currency;

Example with limit by customer number:

In this case, transaction will give us all the documents related with the customer selected. Thus, the user should select the ones which are to be posted as loss. 

Example with limit by document number:

In this case, only that document number will be displayed.

 After selecting the lines concerned, choose 

Debit / Credit balance using FB05:  

Enter in FB05 in PI1 system transaction.

Fill the fields as below:

Document Date and Posting date: Request date

Document Type: DO

Insert customer number and Special G/L ind. "D" or "O". 

Select the item in Doubtful / Invoice or CN

Go back 

Use Posting Key 40 for Debit Balance and account 6420000000

Or

Use Posting Key 50 for Credit Balance and Account 7420000000

Enter.

Fill the amount, Business area and Cost Center fields and Save the posting. 

In order to convert a receivable to doubtful for a customer not assigned to Factoring, we should use transaction FB05 and follow the steps below:

Document date: Today's date
Type: See below the document types distribution by center:

Company code – Company code of the invoice
Currency – Currency of the invoice

Reference: Invoice Reference

Doc. Header Text: Ticket Number

Then click on "Choose open items", insert customer number and select the invoice which should be posted in doubtful status.

Then go back and insert the following data as below:

PstKy: 09
Acccount: Customer Number
SGL Ind: D

Click on Enter

In the following screen insert the informations below: 

Amount: Invoice amount
Due on: Today's date
Assignment: Document number
Text: Doubtful_Customer number_ Invoice number

Click on Save

Checking the customer account, you can check that the invoice is now with the special indicator D and it is posted in 2270000000 g/l (41100300 in WP1)

See example below:

Select the invoice as below:

Save 

Open FB05 transaction in local system

The fields should be filled as below: 

Document and Posting date: Request date
Document type – See below the document types distribution by center:

Currency – Currency of the invoice
Reference - Doubtful
Doc. Header Text – Ticket XXXXX
PstKy: 19
Account: Customer Account
Special GL Indicator: "E" 

Click on Enter. The following screen pops-up:

Fill the fields as below: 

Amount 
Business area: In PF1 insert the BA of original document 
Due on: Due date of Invoice 
Assignment: Document number
Text: Doubtful_ Document number

Pst Key: 40                                                                                         Account: 6330000000 for PF1 and 98340400 for WP1

Then press Enter to add:

Transactn Type: 
AR Pledg. : NO

Then press enter again.

Amount, Assignment and Text field should be filled with the same info as in the previous screens.

For the cost center field for WP1, we can use the following file:

https://docs.google.com/spreadsheets/d/1TD7tjzABrAuybKEwR4UVOwiA0fqZ1Xcu8xPwEdhwvA0/edit#gid=0

In case of doubts or if you cannot find the cost center, please send an email to CAM according to the list below: 

http://teamsites.solvay.com/sites/DCFI-CC-GAC/Lists/List%20of%20Companies%202008/AllItems.aspx

For the cost center for PF1, we should check transaction KS03 - Display cost center or press directly the search button 

Choose "CHEF" and 

Cost Center: *d*850 (3 first digits of the business area)
Cost Center category: r 

Then choose the one for the company code you are posting and the one with fewer digits. Example:

Check the line items by simulating and save.

Open FB05 transaction

The fields should be filled as below:

Document and Posting date: Request date
Document type – See below the document types distribution by center:

Currency – Currency of the invoice
Reference - Doubtful
Doc. Header Text – Case XXXXX
PstKy: 09
Account: Customer Account                                                               Special GL indicator: "E"

Press Enter.

Fill the fields as below:

Amount
Business area: In PF1 insert the BA                                                             Due On: Due date of Invoice
Assignment: Document number
Text: Doubtful_ Document number

Pst Key: 50                                                                                                   Account: g/l account 6331000000 for PF1 and 98340450 for WP1   

Then press Enter.

Transactn Type:

• Flow 25  : if the original provision was booked within the same fiscal year and the reverse is for the total or partial amount of the provision
• Flow 35  : for the reversal when we book in loss the invoices (we will never have payments from the customer)
• Flow 36  : for the reversal when the customer paid invoices or a credit note is issued.

AR pledg. Ind. : NO

Press Enter.

Amount, BA, Assignment and Text field should be filled with the same info as in the previous screen.

For the cost center field for WP1, we can use the following file: https://docs.google.com/spreadsheets/d/1TD7tjzABrAuybKEwR4UVOwiA0fqZ1Xcu8xPwEdhwvA0/edit#gid=0

In case of doubts or if you cannot find the cost center, please send an email to CAM according to the list below: 
http://teamsites.solvay.com/sites/DCFI-CC-GAC/Lists/List%20of%20Companies%202008/AllItems.aspx

For the cost center field for PF1, we should check transaction KS03 - Display cost center or press directly the search button 

Choose "CHEF" and 

Fill the fields below:

Cost Center: *d*850 (3 first digits of business area)
Cost Center category: r

Then choose the one for the company code you are posting and the one with fewer digits. Example:

Check the line items by simulating and save.

Afterwards clear the provision Entries using F-32.

Special GL Indicator: "E"                                                                              Currency: of the document

Select the documents and Save.

Open F-32 transaction in local system with special indicator "D" 

Enter

Select the invoice

Go back 

Insert Posting Key 40 and the g/l account for the loss according to the SAP system:

PF1 - 

WP1 - 

Then click on Enter

Insert * in the Amount field, the business area related (for PF1) and the cost center.

Save  

For the cost center field for WP1, we can use the following file: 

https://docs.google.com/spreadsheets/d/1TD7tjzABrAuybKEwR4UVOwiA0fqZ1Xcu8xPwEdhwvA0/edit#gid=0

In case of doubts or if you cannot find the cost center, please send an email to CAM according to the list below:

http://teamsites.solvay.com/sites/DCFI-CC-GAC/Lists/List%20of%20Companies%202008/AllItems.aspx

For the cost center for PF1, we should check transaction KS03 - Display cost center

Choose "CHEF" and 

Cost Center: *d*850 (3 first digits of the business area)

Cost Center category: r

Then choose the one for the company code you are posting and the one with fewer digits. Example: