3667298 - Perform Further Valuation (F107) handling of different scenarios including credit memo without invoice reference

Symptom

In the app "Perform Further Valuation" (App ID F107) it is not clear how the processing logic works when a credit memo is posted without invoice reference.
When posting a credit memo directly to a customer account, not a customer invoice, it is not clear how F107 "Perform Further Valuations" handles this scenario.
The results of "Perform Further Valuation results are not clear in multiple scenarios.

Environment

SAP S/4HANA Cloud Public Edition

Cause

Examples for Valuation Results

Invoice in Local Currency (Net Amount Calculation)

An invoice was posted in local currency EUR with invoice date 01/01/2024 and net due date 01/01/2024. The invoice amount was 1100.00 EUR (gross amount). The tax indicator is AV. The tax amount posted was 100.00 EUR.

As there were no credit items, the Base Amount in LC is equal to the Amount in LC (1100.00 EUR).

With value adjustment key R1, the valuation area FR, country/region FR and the number of overdue days 365 a Debit Interest Rate of 25 % was found. Calculation using Net Amount is configured for this combination.

The Gross Valuation Difference was calculated as Base Amount in LC x Debit Interest Rate (1100.00 x 0.25 = 275.00 EUR).

As there was no previous valuation the Old Difference is zero.

The Valuation Difference contains the net valuation difference in case of ‘Net Amount’ calculation. (Net amount = 1000.00 EUR x 0.25 = 250 EUR)

LC Tax Amount is calculated as Gross Valuation Difference minus (Net) Valuation Difference (275.00 EUR – 250.00 EUR = 25.00 EUR).

Valuated Amount is calculated as Base Amount minis Gross Valuation Difference (1100.00 EUR – 275.00 EUR = 825.00 EUR)

Invoice in Foreign Currency (Net Amount Calculation)

This example shows how the valuation difference is changed by exchange rate differences from Foreign Currency Valuation.

An invoice was posted in foreign currency USD with invoice date 01/01/2024 and net due date 01/01/2024. The invoice amount was 1100.00 USD (gross amount). The tax indicator is AV. The tax amount posted was 100.00 USD.

The exchange rate on 01/01/2024 was 1 USD = 1 EUR. The amount in local currency was 1100.00 EUR.

The exchange rate on 10/31/2024 is 1 USD = 2 EUR. Foreign Currency Valuation (FAGL_FCV) has posted an exchange rate difference of 1100.00 EUR on 10/31/2024.

The exchange rate difference from Foreign Currency Valuation has changed the Base Amount in LC. The base amount is 1100.00 EUR from original invoice + 1100.00 EUR from FAGL_FCV = 2200.00 EUR.

The Gross Valuation Difference was calculated as Base Amount in LC x Debit Interest Rate (2200.00 x 0.25 = 550.00 EUR).

As there was no previous valuation the Old Difference is zero.

The Valuation Difference contains the net valuation difference in case of ‘Net Amount’ calculation. (Net amount = 2000.00 EUR x 0.25 = 500 EUR)

LC Tax Amount is calculated as Gross Valuation Difference minus (Net) Valuation Difference (550.00 EUR – 500.00 EUR = 50.00 EUR).

Valuated Amount is calculated as Base Amount minis Gross Valuation Difference (2200.00 EUR – 550.00 EUR = 1650.00 EUR) .

Calculation results without credit items (net amount calculation)

There are four debit items relevant for Flat-rate Individual Value Adjustment.

Debit item for document 1800000001 was posted in foreign currency USD. The exchange rate has changed from 1 at the posting date to 2 at the valuation date. Foreign Currency Valuation was executed before and had posted an exchange rate difference of 1100.00 EUR on 10/31/2024. The base amount in LC is higher than the original amount in LC It has been calculated using the original amount in LC of 1100.00 EUR and the exchange rate difference of 1100.00 EUR. This results in a base amount of 2200.00 EUR.

Debit items for documents 1800000002, 1800000003 and 1800000004 were posted in local currency. The base amount in LC is equal to the original amount in LC.

For all four debit items a valuation difference would be posted.

Calculation result including a credit item without invoice reference

A credit memo (document number 1600000000) was posted on 04/01/2024 with a gross amount of 990.00 EUR. The credit memo does not have a reference to a specific invoice but only to the customer account.

The result list shows the credit item in the first line. It has value ‘H’ in column ‘Debit/Credit Indicator’. The number of days, the Gross Valuation Difference, the Valuation Difference and LC Tax Amount are initial for a credit item. The Base Amount in LC has a negative value.

The values in columns ‘Amount in LC’ and ‘Amount in FC’ are not changed in any item because they refer to the original journal entry item.

The debit item with the highest number of overdue days will be offset (first) by the credit amount. The Base Amount in LC was reduced from 2200.00 EUR by the credit amount of 990.00 EUR to 1210.00 EUR. The Gross Valuation Difference, Valuation Difference and LC Tax Amount were adapted accordingly.

As the credit amount was lower than the base amount of the debit item, the other debit items were not changed.

Resolution

System is working as designed.

Keywords

F107, Credit Memo, w/o invoice ref., results list, spool, closing, report, period end closing, period-end, month end, amounts, valuation , KBA , FI-GL-GL-G-2CL , Closing Operations / Period-End (Public Cloud) , Problem

Product

SAP S/4HANA Cloud Public Edition all versions