
This blog post is about the new deliverable of uncollectible receivables, aiming to introduce the new Business Add-in (BAdI) for virtual payment and the related business scenarios. You can find the detailed information of the previous deliverables in the previous blog post Introduction of Bad Debt Relief solution.
Before introducing the business cases where the new BAdI is applied for, we need to first understand two different types of bad debts with late payments arrival.
If the payee already paid the VAT amount to the tax authority but does not receive the payment eventually, the invoices are marked as uncollectible receivable by local courts. However, it may happen that the payments still arrive later and results in two scenarios below:
Note: The colors in the graphic represent different periods.
Two late arriving partial payments, instead of being used as real clearing documents, that is, value filled in the field DFKKOP-AUGBL, are used as “virtual payments,” or assigned as “virtual clearing.” Accordingly, two debit memos are created (20 euro and 10 euro) to correct the VAT tax amount sent to the tax authority.
The final credit memo is 70 euro, because the original credit memo 100 euro (from invoice with 1,000 euro) is calculated with total debit memo amount 30 euro.
The invoice of 1000 euro is cleared with virtual payments totaling 300 euro and 700 euro left. The VAT amount is 70 euro. The credit memo is created for 70 euro. The virtual payments reduce the open item amount as a basis for credit memo calculation.
This situation occurs when the write-off is allowed to be reversed based on the local law. The write-off is reversable anytime or for certain business reasons, such as the write-off reason was wrong.
This diagram depicts if the write-off is reversable in example 1. The progress from January 2020 to January 2024 is the same as that in example 1. Until the end of January 2024, the invoice is left 700 euro unpaid and written-off after the virtual clearing with one credit memo 70 euro.
In December 2024 (yellow), if the written-off is reversed, the bad debt item is reopened and can be normally cleared if there are future payments.
If the write-off is reversed before the incoming payment arrives as shown above.
To allow the virtual payments stated in the previous examples, a new Business Add-In method is introduced. You can use the BADI BADI_FKK_ID_TC_ANA and its method GET_VIRTUAL_CLEARING to implement your own logic of reading the information about virtual clearings and provide them to the bad debt analyses.
Note: The BAdI method GET_VIRTUAL_CLEARING is called by bad debt analyses for those bad debt items which are open (not cleared) or are cleared with irrelevant clearing reason. You can define the “irrelevant clearing reasons" in the existing customizing or defined by another BADI method CHECK_CLEARING_RELEVANT.
The payments for virtual clearings must be saved in the Z database table to provide bad debts analyses as the BAdI customer implementation. The recommended approach is as follow:
Field | Short Description | Key Field |
TCRPD | Corrected Document Number | X |
TCRPR | Number of Corrected FI-CA Document Repetition Item (Remark: Maintain this field always as 0) | X |
TCRPL | Number of Corrected FI-CA Document Item | X |
AMBEL | Number of Payment Document | X |
BETRH | Amount In Local Currency With +/- Signs |
|
BETRW | Amount in Transaction Currency with +/- Sign |
|
WAERS | Currency Key |
|
The general functions in this blog post can also be used for country/region-specific solutions, such as deliverables described in the SAP Notes for Slovakia.
3404104 - FI-CA SK: VAT Control Statement - Bad Debt Relief #10
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