Peru (FINA650 - SIGAFIN)

As bills receivable (pending and overdue) get older, increasing fractions of their balances are accounted as a bad debit provision until the total value of such balances are reached, according to certain periods of time (as of a reference date).

The bill status is analyzed based on a reference date as follows:

• Defines time intervals.
• Defines the minimum value to be accrued.
• Checks intervals of bill due dates and considers them in ascending order, that is, starts by the time interval with the smallest number of days until the largest one.
• After defining the time interval, the temporary value of the provision is calculated, applying the estimation percentage to the bill balance.
• The total number of bill provisions made is obtained.
• The definite provision value is the difference between the temporary value and the total value accrued.
• If the definite value is negative, a reversal entry is generated.
• The accounting entry is made with the provision absolute value.
• Provision is only made if its absolute value is higher than or equal to the minimum value defined.

For accounting, the standard entry to be used is 51A.

Procedures

1. By accessing Bad Debit Provision, click Percentages to define periods and percentages for provisions.

2. A screen is displayed to define 10 periods (in days) with the respective percentages to be calculated on bill balances.

3. The reference date used is from the system (dDataBase).

4. You do not need to enter all periods because bill are classified into the ones entered.

Example

5. After defining the periods, click Related Features, and then Generate Provisions.

6. A new screen is displayed to parameterize or confirm the process.

7. Click Questions and fill out data according to field help instructions. While filling data out, you can also define the minimum provision value to be considered, that is, provisions with absolute value lower than this minimum one are not generated.

8. Click Data, and then Run.

9. To view the provisions generated for a certain bill, click Related Features, and then View Prov.

See Also

• Report with Provisions Generated
• Report with Provisions Generated per Each Bill