Topic Presentation

Write-offs
Internal
Baohua Feng
March 01, 2016
Agenda

 Overview

 FP04: Writing off Items

 FP04M: Writing Off Items in Mass Runs

 System Demo

 Challenges and frequent problems

 Documentation

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Overview
Write-offs
Introduction – Write-offs

Why Write-offs are needed?

You carry out write-offs if receivables are uncollectible or payables cannot be disbursed, for
example the payee cannot be identified

Features:
 You can write off open items completely, or partially in transaction Write Off Items (FP04).

 The written off items are cleared and a write-off document is created.

 write-off documents can be reversed

 Write-off History

 Tax will also be adjusted for a write-off

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Introduction – Write-offs Process

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Introduction – Accounting View

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Write-off: Customizing Settings

You have to make the following settings

· Define the write-off reasons

· Define the specifications (choice of

check level) and default values (the
clearing reason, for example).

· Define the G/L accounts for writing

off receivables and payables and
define these accounts for automatic
account determination.

Define for an item to be written off,

whether the tax adjustment will be
triggered

· Here can select a rule to be used

to calculate the tax adjustment for a
write-off.
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Write-offs: Customizing Settings

Write-off Reason: TFK048A

PWO : Partial Write-off allowed?

Val: Valid for manual write-off （Write off or Mass Write-off or both )

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Write-off: CO Account Assignment

CO account Assignment:

How is cost center, profit centre, business area etc to be derived

Posting Area 1052 for FP04 (Manual Write-off)

Posting Area 1053 for FP04M (Mass Write-off)

SPACE = derived from the cost element of the GL Account

(default CO account assignments)

1 = inherited from the attributes of the item that is written off

2 = derived from the write-off main and sub transaction from posting area R001*

*Posting Area R001 - Acct Assignment Data to main and sub transactions

Internal transactions: Manual Write-off Main 0090 Sub 0010/0020

Mass Write-off Main 0095 Sub 0010/0020

COKEY: （V_TFKCOK） key that provides information on co account assignments

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Write-offs: Account Determination(Expense/Revenue)

Posting Area: 0120 Determine Revenue Account (incl.tax code)

Key fields :

Company code
GL account of the write off item
Write off reason
Division
Account Determination ID
Main transaction
Subtransaction

Function fields:
G/L account for expenses from write-offs.
G/L account for write-off revenues.

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Write-off Items by
FP04
Selection Screen

Selection of :
Business partner
Contract account
Contract
Document number
Reference Document

IS-PS
specific

IS-U
specific

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Check Rules

The function module called at event 5010 enables you to specify company-
specific check rules. It’s called in process after selection of open items from
database. It comes directly before actual selection of the items to be written off.

In addition, the industry-specific check rules could also be applied in event

5008.These check rules then determine which of the open items selected can be
written off and displayed accordingly on the selection screen.

Depending on the authorization of a user they can write off with or without
check rules:

Special authorization for activity 020 of the authorization object FI-CA Special
Function (technical name F_KK_SOND)
* FQAUTH can be used to check the predefined processing functions with authorization protection (F_KK_SOND)

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FP04 –Function modules

Function Group: FKA1

 FKK_WRITEOFF
 FKK_WRITEOFF_CREATE
 FKK_CHECK_WRITEOFF_TAXLINES

Function Group: FKB0

 FKK_FKKOPK_ADD_CO_DEFAULT_DATA
 FKK_CREATE_DOC_AND_CLEAR

BAPI:
 BAPI_CTRACDOCUMENT_WRITEOFF

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Write-off Events
5005 Can include your own additional fields on the selection screen of the transaction

5006 Check data or get defaults on selection screen for the transaction Write Off Items (FP04)

5008 Apply additional check rules for write-offs

5012 Permits the write-off of split position

5010 Specify company-specific check rules ( is not used when flag ‚do not use write-off rules‘ is set. )

5020 Carry out company-specific checks on selected items to be written off

5030 Additional Account Assignment such as cost centre, profit centre or business area (see also
Posting area 1052)

5040 Enables you to realize closing actions after the write-off was processed

5070 Create/modify tax lines

5075 Create/modify revenue or expense lines

5500 Defines whether the document being posted has to be confirmed

5512 Write-off workflow:decides whether the write-off you have entered has to be approved

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System Demo
Write-off by FP04
Mass Write-off
FP04M
Mass Write-off : FP04M

General Selection:
You can use GPART and VKONT as selection criteria or the preselection.
To maintain preselected data, you can use transaction FPSELP.
Via preselection, you have much more possibilities to specify criteria (e.g.
surname) for your mass run.

Preselection used

Direct selection

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Mass Write-off : FP04M

Addtional Selection:

You can also select via:

 collection strategy and
 collection step

 can be used instead of event 5010

Possibility for amount check via groups

maintained in posting area 1053

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Mass Write-off : FP04M

Posting Parameters:

FP04M does always a complete write-off!

 You can see via Menu also in simulation mode, to which accounts the postings will be done
Next slide
It’s also possible to write-off the downpayments

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Mass Write-off : FP04M

1.)Maintain Write-Off Variants

Here you define write-off variants which will be customized in 2.) and
read in event 2957.

2.)Maintain Age and Amount Grid for Write-Off Variants

You have to maintain event 2957 to find via your data a suitable
variant. The data is read and items are written-off or noted in the
application log or both/nothing.

Example
Document 4711 was posted 360 days ago with the amount EUR 1000.
There is a write-off variant VARI with the following settings:
Days after Sequential Automatic From these settings, the system derives the following procedure:
Amount Log
Due Date Number W/O 1. The document is older than 50 and 100 days. The system therefore
50 1 500 X
checks all four entries, but firstly the items with the highest number of
days after due date and the smallest amount.
100 1 500 X 2. The system checks line 2 first. The amount of EUR 1000 is more than
EUR 500 and, therefore, does not qualify.
100 2 1000 X X 3. The system then checks line 3. The amount of EUR 1000 is within the
range up to EUR 1000 and therefore qualifies for the write-off.
100 3 5000 X
4. The system writes off the item automatically and makes a note in the log.

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Mass activity settings for FP04M

 VC_TFK090:

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Mass activity settings for FP04M

 VC_TFK090:

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FP04M – Function modules

Function Group: FKA8

Massactivity - Intervall function module:

 FKK_SAMPLE_1730

Other important Function modules:

FKK_CREATE_DOC_MASS_AND_CLEAR (FKB0)

Subroutine:
• document_lines_create
• gl_lines_create
• document_post

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System Demo
Write-off (FP04M)
Challenges and Problems
Comparison : FP04 and FP04M

Due to historical reason, FP04 (Manual Write-off) and FP04M（Mass Write-off) are
still complete different.

FP04 FP04M
Function Group FKA1 FKA8
Main FM FKK_WRITEOFF FKK_SAMPLE_1730
OPK Created writeoff_fkkopk_create gl_lines_create

……

Challenge
It means that all corrections are needed to be considered if it applies to
both transactions and if yes, it has to be done seperately.

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FP04M with Collective Bill （last critical issue: Solved)

 Background:
Runtime error with SAPSQL_ARRAY_INSERT_DUPREC is reported for FP04M

 Explanation:
The problem happened when the collective bill accounts are involved and the
parallel processing is scheduled for FP04M.
When the process writes off an item which is contained in a collective bill, the
corresponding statistical collective item is partially written off as well. As the
collective bill 'contains' postings from many different contract accounts,
it may happen that several processes of the mass activity are trying to partially clear
the same open position of the collective bill at the same time.
Such competitive update on the same collective bill account
document during parallel processing of the write-off will lead to runtime error.

• Solution: Note 2189663

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Documents
Wiki Page for FI-CA

See Wiki-Page

https://wiki.wdf.sap.corp/wiki/display/imsfica/Write+Off

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Wiki Page for FI-CA

Contract Accounts Receivable and Payable (FI-CA)

http://help.sap.com/erp2005_ehp_07/helpdata/en/62/e7c5536a51204be10000000a174cb4/frameset.htm

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Important Notes

1970139 - Write-off event 5020: Changes to table T_FKKCL not allowed

(Background: Customer changed the tax codes at event 5020 in T_FKKCL and it leads to FPT1 error)

2068654 - WriteOff Approval: Unexpected error messages e.g. >0 012 or >0
476 prevent postings or too many sub-items written off

2269018 - FP04: runtime error TIME_OUT

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Thank you

Contact information:

Baohua Feng
mailto: Baohua.feng@sap.com

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