You use the Post B/S Reclassification job to sort your assets and liabilities according to their remaining term and their balance so that they can be reported correctly in your financial statements. You need to perform adjustment postings to do this.
Post adjustments to trade payables and receivables due to maturity
Post adjustments for receivables with debit balances and payables with credit balances
You find the Post B/S Reclassification job in the Schedule General Ledger Jobs app
Figure 1: Setup New Job for B/S Reclassification
Increased reporting capability by reflecting the adjustment postings to trade payables and receivables in the universal journal
The introduction of the valuation line type improves the reporting capabilities by type of the valuation posting
No additional accounts needed for adjustment postings
Financial statement version can be simplified because less G/L accounts needed
A pre-requisite to use the new advanced valuation processes is to activate advanced valuation (SSUI 103315).
Figure 2: Configuration Process Overview
Firstly, the aging increments need to be defined (SSCUI 103049). SAP S/4HANA Cloud comes with two predefined aging increments:
Aging for reclassification with three increments (short-term, mid-term, long-term)
Aging for global reclassification (current, non-current)
Secondly, you define the reclassification rules (SSCUI 105454) that contain the reclassification steps to be carried out. In each step you assign the G/L target and source accounts for reclassification. Important: you select reconciliation accounts, because the reclassification posts directly on the reconciliation accounts with business transaction type 'reclassification' (RFRC).
Finally, you also assign a reclassification method that controls how to deal with balances from source accounts to target accounts. For example, when you choose the method 'Credit Balance' and the source account is an accounts payable account then only credit balances of this account are reclassified according to their maturity.
To run / schedule the process you use the Schedule General Ledger Jobs app from were you select the B/S Reclassification job template. After the execution you can check the header, the results in different currencies, logs and a document list of reclassifications and take necessary follow up activities from here.
Demo 1: Configuration and Execution of B/S Reclassification
The final postings then can be displayed in the Manage Journal Entry App as well as in the Financial Statement reporting such as the Balance Sheet/Income Statement App.
Figure 3: Display Reclassified Balances in Balance Sheet/Income Statement App