Title

Updating a Flat-Rate Individual Value Adjustment (FIVA)

Purpose
You use this report to update a FVA in terms of the documents that arecurrently overdue. Based on the selection criteria you specify thesystem only uses documents with certain attributes or documents fromloans with certain attributes.
You can also enter the length of time that they have been overdue as avariable. In practice you would select a quantity of documents that havenot been cleared for more than three months (90 days).

Integration
The report is usually run in a job schedule on a monthly basis to updatethe FIVA accounts. A separate job schedule is required for each FVAaccount.

Prerequisites
You need to have created and saved the FVA account for which you want torun the update. You must also have entered a description for the FIVAportfolio (interest or charges FIVA).

Features

Selection
The report for monitoring arrears has the following selection criteriathat can originate in CML and in the RBD component:
Criterion (Optional/Required Entry Field) Origin
Meaning
RBD Context
Parameter (Required) RBD Area (RBD)
These parameters specify the risk portfolio to which the documents to beselected from CML are assigned.
Parameter (Req.) Account number (RBD)
Here you enter the RBD account for which a FVA is being updated orgenerated.
Loan Contract
Selection Option (Optional) Company Code (CML)
You can limit the company codes from the source system.
Selection Option (Optional) Contract Currency (CML)
Only certain contract currencies can be considered.
Selection Option (Optional) Status (CML)
Only certain statuses can be considered.
Selection option (Required) Product Type (CML)
Product types to which the CML loans are assigned.
Selection option (Optional) Dunning level of document (CML)
Selection criteria at document level so that only documents with certaindunning levels are included.
Selection option (Optional) Dunning level of contract (CML)
Selection criteria at contract level (dunning symbol) so that onlycontracts with certain dunning levels are included.
Selection Option (optional) Contract Number (CML)
Restriction for source system in selection.
Selection Option (optional) Finance project number (CML)
Restriction for source system in selection.
Selection Option (optional) Business Partner (CML)
Restriction for source system in selection by main borrower partnernumber.
Selection Option (optional) Business Partner (CML)
Restriction for source system in selection by main borrower partnernumber.
Control
Parameter (Required) Document Date Source System (CML)
Restriction for source system in selection.
Parameter (Required) Posting Date (Posting System and RBD)
The date used for posting.
Parameter (Optional) special period (posting system and RBD)
You can specify a special period for posting here.
Parameter (Optional) fiscal year (posting system and RBD)
Here you can specify in which fiscal year the postings are to be made.If you do not make an entry here the system determines the fiscal yearon the basis of the posting date.
Parameter (optional) Posting Text
You can enter a generally valid posting text here. If you do not make anentry here the system generates a text based on the RBD flow type, theRBD area and the RBD account number.
Parameter (Required) Valuation Area (RBD)
The valuation method in the RBD component indicates the procedure withwhich the values adjustments are to be balanced. This does not refer toa procedure in the context of valuation methods according to § 240paragraph 4, § 256, line 1 of the German Commercial Code but to ageneral differentiation for example:
Valuation methods based on the GCC
Valuation methods based on IAS
Valuation methods based on US-GAAP.
Radio Button (Req.) Simulation or update run
Here you can choose whether the processing is simulated first or you runan update run straight away.
Radio button (Req.) Generate or post planned records
Here you can choose whether you only generate the planned records orwhether they should be posted immediately.
Radio Button (Req.) Synchronous or Asynchronous Posting
You can choose whether the posting (update run and planned record orposting) is started immediately or run asynchronously as a backgroundjob.
Radio Button (Req.) Display Individual Documents
Depending on the volume of data expected; you can limit the display ofindividual documents for large volumes. The individual documents clarifythe link from planned or actual records to the CML loans.
Output fields for posting (actual) records
RBD document number
Flow type
Text for flow type
D/C indicator
Transaction currency
Amount in transaction currency
Fiscal year
Posting date
Document number in the posting system
Flow type group
RBD class
Automatic posting
Output fields for planned records
Sequence number of planned record
Flow type of planned record
Name of flow type
D/C indicator
Transaction currency
Amount in transaction currency
Fiscal year
Posting date
Sequence number of posting record (actual record)
Flow type group (capital, interest or charges)
RBD class
Indicator for automatic posting
Output fields for individual documents (optional)
Sequence number of individual documents
Valuation method
Component ID of source system
Contract number in source system
Document number in source system
Document item in document number in source system
Reversal indicator
Active indicator line item
Indicator reclassification
D/C indicator
RBD class
Currency of individual document
Amount of individual document

Activities
Selection
In the first step the system selects all contracts from CML that meetthe product criteria entered (product type, company code, contractnumber, finance project number, main borrower partner number, riskclass, contract status, loan type, currency).
The system only considers the product types that have been defined asrelevant for the RBD component in the Customizing settings.
The system then takes all of the items from CML that correspond to theflow data criteria to the Portfolio selected:
,,- CML flow type corresponds to the restriction according to theselection option
,,- Only documents with named dunning levels
,,- Only documents that are open or partially cleared in the postingdate (according to the parameters) and in which the posting date and thepayment date are before or the same as the posting date in accordancewith the parameters.
The program must also check each document to see whether is has alreadybeen value adjusted in another RBD account.
Subsequent Processing
The system forms totals at CML flow type level, CML company code level,CML account assignment reference level and at currency level (in thishierarchical structure). From these totals the system generates valueadjustment proposals in the form of planned records. The followinginformation is taken from Customizing:
,,- which business operation is being dealt with (for exampleappropriation monitoring of arrears) and the business operation text.
,,- which RBD flow types are to be used for the business operationappropriation monitoring of arrears
,, (Only the flow types appropriation FIVA interest, appropriation FIVAcharges are relevant for this report.) Flow types from the source systemwithout the equivalent in Customizing are ignored.
,,- which CML flow types correspond to which RBD flow types
,,- which debit / credit indicator belongs to each RBD flow type
,,- which RBD class is required, based on the CML company code, CMLaccount assignment reference and currency
The posting date entered in the parameters is used as the posting datefor the business operation. The individual planned records are assignedto the business operation with RBD item numbers.
Planned Records Transfer
The planned records generated are added to the RBD account selected. Ifno postings are made and you have not selected the simulation run, theplanned records table for the specified RBD account must be extended.
Individual Document Transfer
The CML documents waiting for value adjustment must be entered in theindividual documents table displayed with an activation indicator andthe RBD account data, RBD area, RBD documents number and RBD accountnumber.
Posting
Depending on the parameters entered and the indicator for automaticposting set in the RBD account or for the RBD flow type, the systemforwards the planned records generated by the report for posting. Thismeans that the program must first determine the debit and creditaccounts for posting in FI using account determination. The actualrecords table for the specified RBD account must then be extended andthe records transferred to the posting interface. The system alsoassigns document numbers for the RBD documents. The FI document numbersreported back from FI on the basis of the postings are assigned to theRBD documents.