We are hiring and constantly growing! Have a look through our vacancies to find the right role for you!
In this Customizing activity you assign the reclassification flow types.
If a contract is reclassified, or a balance sheet transfer is made due to a currency change or the account assignment reference is changed leading to a change in the RBD class, the existing value adjustment (RBD) must be taken off the books and posted to the new RBD account, in the new currency, or to a new RBD class.
This can take place within the individual value adjustment (IVA) or the flat-rate value adjustment (FVA) process. A position transfer from FVA to IVA is also supported here. Each case results in a source account category and a target account category.
The system creates a position for the relevant contract for a position change. This comprises:
the current year, allocation, previous year, and loss, distributed over the relevant flow type group.
The system uses the 'Reclassification Outflow' flow to remove the position of the old reference off the books and then uses the 'Reclassification Inflow' flow to post the new reference.
You need to have made the settings in the following Customizing activities:
The reclassification flow types are comprised as follows in the RBD standard Customizing:
Example: ,,For a "Reclassification IVA Inflow Interest Current Year"' the flow type would be: 2101
An RBD account exists for both partner A and partner B for the value adjustment procedure IVA with the aggregation level Partner. Source system contracts 1 and 2 are assigned to RBD account A, source system contracts 3 and 4 are assigned to RBD account B. All four source system contracts have caused a corresponding value adjustment position in the relevant RBD account.
Because of a main borrower change from partner A to partner B for account 2, you must reclassify the value adjustment position from RND account A to RBD account B. To do this, you use the RBD function Position Transfer RBD. You must set up the RBD flow types required for the clearing of the value adjustment from RBD account A and for the posting to RBD account B in the Customizing table assigned to this Customizing activity:
|Source Account Category||Target Account Category||Business Operation||Value Adjustment Position||Flow Type Group||Reposting Outflow||Reposting Inflow|
|IVA||IVA||Reclassification||Value adjustment position curr. year||Interest||2151||2101|
|IVA||IVA||Reclassification||Value adjustment position curr. year||Charges||2152||2102|
|IVA||IVA||Reclassification||Value adjustment position curr. year||Capital||2150||2100|
|IVA||IVA||Reclassification||Value Adjustment Position Allocation Previous Year||Interest||2161||2111|
|IVA||IVA||Reclassification||Value Adjustment Position Allocation Previous Year||Charges||2162||2112|
|IVA||IVA||Reclassification||Value Adjustment Position Allocation Previous Year||Capital||2160||2110|
|IVA||IVA||Reclassification||Value Adjustment Position Previous Years||Interest||2171||2121|
|IVA||IVA||Reclassification||Value Adjustment Position Previous Years||Charges||2172||2122|
|IVA||IVA||Reclassification||Value Adjustment Position Previous Years||Capital||2170||2120|
In accordance with the Customizing settings listed here, when you reclassify a value adjustment position for interest that has been created in the current fiscal year (value adjustment position current year), the system uses the RBD flow type 2151 (Reclassification IVA Outflow Interest Current Year) to take the value adjustment off the books and the RBD flow type 2101 (Reclassification IVA Inflow Interest Current Period) to repost the value adjustment . For charges, the system uses RBD flow types '2152' (Reclassification IVA Outflow Charges Current Period) and 2102 (Reclassification IVA Inflow Charges Current Period), and so on.