There are a few things, well maybe more than a few, that SAP asks you to just take on faith. Running the Classic GL on ECC 6.0 or prior (4.6 c, etc), the Cash Discount calculation (also known as the Profit Loss Adjustments calculation, T-code: F.50) is one of them.
As a general ledger accountant and FICO ninja, you may have come to accept the fact that SAP knows what it’s doing with that calculation and you don’t really question it. But for a field manager whose Cash Discount comes in unexpectedly high (for CD allowed) or low (for CD earned), the easy answer is that Accounting must be missing something, and nothing would make you feel better than to check their math.
So as the FICO guru you’re stuck with explaining how this calculation works? And figuring out how you can show the details? Let’s take the second part of that first.
Getting the Details for the P&L Adjustment Calculation?
I’m not sure if this works prior to ECC 6, but you can take a look if you’ve not made the ECC 6 leap. Here’s a simple step-by-step to get SAP to generate a Log file of the original documents that created the P&L adjustment. In the case of an AR adjustment (cash discount allowed), that will be a billing document. For Cash Discount earned, that’s an AP document. Here’s what you need to do:
- In F.50, you’ll need to fill in the Company Code, year, and periods first (you will probably get an error if you click buttons without them filled)
- Next, click the All Selections button (shift – F7) – this is shown in image to left.
- Go to ‘Output Control’ at bottom of selection and put a check in ‘Log at line item level’, and give it a heading (see the last image in the post for that)
- After you fill out your normal selection criteria and execute, you should have a log file that is viewable in SM37
- You can download the logfile to a text file and import into Access or your tool of choice.
The value of this information is questionable, which is why SAP doesn’t just give it to you up front. But if you’ve got an inquiring mind (or someone with one is bugging you for it), this data will let you get back to the original transactions to see exactly where these adjustments are coming from. You’ll need to know something about the types of documents to know where you can view them, for instance, you can view the Billing Docs in VF04 for the CD Allowed lines.
How does the Profit Loss Adjustment calculation work?
So, the next question is how does this calculation work? That depends on the type of transaction we’re dealing with. Bear in mind that this is Class GL, not the New GL, that we’re talking about here. My company is using Classic GL right now, so I don’t really know how this works in New GL…yet!
So, for a billing document, the AR and Cash discount originally are posted to your dummy profit center. When you run F.50 to transfer the Cash Discount (F.5D for transferring the AR), the system looks at the original document and pulls the correct profit center from there, transferring the amounts from the Dummy Profit Center to the correct one.
On the AP side, Cash Discount may be using the GR/IR document for the profit center, but I’m not 100% sure.
UPDATE: Note – Run F.50 Only Once per Period
The Application Help in SAP warns that the program may only be run once per Period. You can run it for separate company codes and probably accounts, but it should only be run once per combination. If you do attempt to run it again, it will generate the following warning:
Note that you could hit enter and go on through the Warning message, and it would create the batch input again. The problem is that you’d probably have duplicate postings if you ran the batch input again. I don’t think it reverses previous entries…if anyone has confirmation, please let me know!
I needed to capture this info for future reference, but hopefully it’ll help someone else out as well!