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Legal implications when making adjustments

Former Member
0 Kudos
53

Hi,

What are the legal implications if business needs to open FI period in OB52 to make adjustments in accounting from 3 months ago?

Is it a normal practice in FI area or can this be used as a workaround? Any clear explanation is welcome

Roger

Accepted Solutions (1)

Accepted Solutions (1)

dominic_holdstock
Active Contributor
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Hi,

The implications depend on:-

a) What Adjustments are made.

b) What country you are in.

c) What GAAP you use.

d) Is the "3 MOnths" in the same Business Year.

Kind regards

Former Member
0 Kudos

Hi Dominic,

Take for instance European countries and USA the largest markets.

Past posting in the same year in which OB52 is opened for an adjustment of an invoice that was forgotten by mistake.

Adjustments in FI side in which consequences can be more severe.

Example an Idoc that was stuck for months and when reprocessed via BD87 the error message says that the previous period is already closed and someone opens in OB52 just to ensure the IDOC (payment to vendor) is processed successfully.

Month-end for those periods are already closed and then someone posts in the past. Is it ok under SAP perspective?

Is it an illegal practice.

If you can provide more examples using GAAP (other countries and other adjustment types) I would be grateful since I receive request from users who also do not know the consequences.

Regards

Rogerio

dominic_holdstock
Active Contributor
0 Kudos

Hi Rogerio,

Generally the old posting will not be an issue for GAAP, since that is mainly focused on the financial year.

The big issues will be in the Tax Reporting eg VAT, EC Sales List, Intrastat. All these will (if permitted) have to be resubmitted for that month. Even where permitted there can be penalties / Interest payments for late payment that have to be paid.

It will also affect corporation tax returns where these have to be made monthly (eg Poland, provisional tax in Mexico).

If the adjustment is just reposting costs from one cost account to another then it would probalby not effect these.

All your CO reporting will also possibly be affected , since this posting will not have been included in any Distribution / Settlement.

It would therefore require manual re-posting.

The posting is not necessarily strictly illegal but the consequences and additional work required to keep the accounts clean is severe.

Kind regards

Former Member
0 Kudos

Hi Dominic, excellent clarificatin. Many thanks for your input.

Regards

roger

Answers (0)