Provisions

Our ERP solution enables you to allocate provisions. These are used to account for potential future liabilities or uncertain costs whose exact amount or due date is not yet known – such as expected tax payments, warranty measures, upcoming repair costs, or ongoing legal proceedings. This chapter is divided into the following sections:

• Setting up Provisions
• Setting up Provision Posting Groups
• Setting up Provision Classes
• Creating Provisions
• Provision Additions
• Provision Usage
• Provision Reversals
• Provisions in Calculation Review
  • Setting up Provisions for the Calculation Review
  • Posting Provisions in Calculation Review
  • Resolving Provisions in Calculation Review
• Displaying Provisions Statement

Setting up Provisions

To use the provisions functionality, you must first set it up in the General Ledger Setup. To do so, please proceed as follows:

• Use the quick search (ALT+Q) to find the General Ledger Setup page.
• Navigate to the Provisions FastTab.
• To use the provision functionality, make sure that the Active toggle switch is activated.
• In the Provision Nos. field, enter the desired number series to be used for provisions.
• In the Provision Journal Template Name field, enter the name of the journal template to be used for newly created provisions.
• In the Provision Journal Batch Name field, enter the name of the journal batch to be used for newly created provisions.

You have successfully competed the basic setup for provisions.

Setting up Provision Posting Groups

To determine to which G/L accounts provisions shall be posted, you must define a corresponding posting group. To do so, please proceed as follows:

• Use the quick search (ALT+Q) to find the Provision Posting Groups page.
• To create a new provision posting group, click on New in the menu bar.
• Fill in the fields according to the following table:

You have successfully created a provision posting group.

Setting up Provision Classes

To group newly created provisions, e.g., for reports, you can create so-called provision classes. These can be created freely as needed by your company. To do so, please proceed as follows:

• Use the quick search (ALT+Q) to find the Provision Classes page.
• To create a new provision class, click on New in the menu bar.
• Enter a unique code for the new provision class in the Code field.
• Enter a significant description for the new provision class in the Description field.
• Enter the default provision posting group in the Default Provision Posting Group field.

You have successfully created a provision class.

Creating Provisions

To create provisions for one or more maintenance contracts, please proceed as follows:

• Use the quick search (ALT+Q) to find the Provisions page.
• To create a new provision, click on New in the menu bar.
• Fill in the fields according to the following table:

You have successfully created a provision. You can enter it later on the General Journals page, in maintenance contracts, and purchase documents to initiate the posting of specific provision values.

Provision Additions

To create a provision for a potential expense, you must first allocate an amount. To do so, please proceed as follows:

• Use the quick search (ALT+Q) to find the Maintenance Contracts page.
• Click on New to create a new maintenance contract, or open an existing maintenance contract from the list. You’ll find more information on creating maintenance contracts under Maintenance Contracts.
• Navigate to the Provisions FastTab.
• Select a previously created provision in the Provision No. field.
• The Description, Valid From, and Valid Until fields are filled automatically with the values defined on the related provision card.
• In the Addition Value field, enter the amount of the provision as a negative number, e.g., -5.000,00.
• Then, click on Create Addition Postings in the menu bar of the FastTab.
• The Create Provision Postings window opens.
• Select the desired posting date in the Posting Date field.
• Enter the document number for the posting in the Document No. field.
• Enter a significant description for the posting in the Posting Description field. If you leave this field empty, Provision Maintenance Contract [Maintenance Contract No.] will be used as the default description.
• Confirm your entries with OK.
• The addition posting is created and the General Journals page opens.
• Click on Post in the menu bar to post the provision addition.
• Confirm the dialog window with Yes. The posting is carried out.
• Confirm another dialog with Yes.

You have successfully created a provision for a maintenance contract. The checkbox in the Posted column in the Provisions FastTab on the maintenance contract card is now automatically selected. The No. of Maintenance Contracts and Value fields of the corresponding provision on the Provisions page are also automatically updated.

Provision Usage

Provisions can be used to, e.g., cover the costs of spare parts in purchase orders. Please proceed as follows to use provisions in purchase invoices:

• Use the quick search (ALT+Q) to find the Purchase Invoices page.
• Open the purchase invoice to which you want to add a provision or click on New in the menu bar to create a new invoice.
• Navigate to the Lines FastTab.
• Fill in the fields according to the following table:

Your entries are saved automatically. You have successfully posted a provision usage. Once you post the purchase invoice, the Value of the corresponding provision on the Provisions page is also automatically updated.

Provision Reversals

Provisions can be reversed due to various factors, e.g., because the liability has been fulfilled, the required provision amount needs to be adjusted, or the legal situation has changed. To reverse a provision, please proceed as follows:

• Use the quick search (ALT+Q) to find the Maintenance Contracts page.
• Open the desired maintenance contract and navigate to the Provisions FastTab.
• Click in the line of the provision for which you want to carry our a reversal posting.
• Click on Create Reversal Postings in the menu bar of the FastTab.
• The Create Provision Postings window opens.
• Select the desired posting date in the Posting Date field.
• Enter the document number for the posting in the Document No. field.
• Enter a significant description for the posting in the Posting Description field. If you leave this field empty, Provision Maintenance Contract [Maintenance Contract No.] will be used as the default description.
• Confirm your entries with OK.
• The reversal posting is created and the General Journals page opens.
• Click on Post in the menu bar to post the reversal of the provision.
• Confirm the dialog window with Yes. The posting is carried out.
• Confirm another dialog with Yes.

You have successfully posted a provision reversal. The Value of the corresponding provision on the Provisions page is also automatically updated.

Provisions in Calculation Review

You can post or resolve provisions for a service item via the Calculation Review. The setup and process for this are explained in the following subsections.

Setting up Provisions for the Calculation Review

Before you can post or resolve provisions via the calculation review, you must set up the use of provisions for the calculation review. To do so, please proceed as follows:

• Use the quick search (ALT+Q) to find the Sales & Receivables Setup page.
• Navigate to the Calculation Review FastTab.
• Complete the fields in the Provision area according to the following table:

You have successfully completed the setup for provisions from the calculation review. The specified provisions determine to which G/L accounts the provisions from the calculation review are transferred when posting.

Posting Provisions in Calculation Review

The values of the calculation review may differ from the calculation worksheet, e.g., because not all costs or discounts have been posted yet. In this case, you can post a provision to bring the calculation review closer to the calculation worksheet. To be able to post provisions via the calculation review, the following conditions must be met:

• You have created a CPQ with an associated calculation worksheet.
• You have created a purchase order from this CPQ.

Then proceed as follows to post a provision via the calculation review:

• Use the quick search (ALT+Q) to find the Service Items page.
• Open the desired service item.
• Click Service Item > Calculation Review in the menu bar.
• In the calculation review, in the Service Item FastTab, select the calculation worksheet you want to compare the service item calculation review with in the Calc. Worksheet No. field. Only calculation worksheets of the same service item are available for selection.
• Navigate to the Overview FastTab. For more information on this FastTab, click here.
• For the desired cost areas, enter the amount of the provision to be created in the Provision to Post field, e.g., 5,000.00.
• Enter a significant description for the posting in the Posting Description field.
• Click Create Provision in the menu bar.
• The General Journals page opens with the created journal line.
• Click Post in the menu bar to post the provision.
• Confirm the dialog window with Yes. The posting is carried out.

You have successfully posted a provision from the calculation review.

Resolving Provisions in Calculation Review

Once the outstanding costs or discounts have been posted, you can resolve the related provisions. To do so, proceed as follows:

• Use the quick search (ALT+Q) to find the Service Items page.
• Open the desired service item.
• Click Service Item > Calculation Review in the menu bar.
• In the calculation review, in the Service Item FastTab, select the calculation worksheet you want to compare the service item calculation review with in the Calc. Worksheet No. field. Only calculation worksheets of the same service item are available for selection.
• Navigate to the Overview FastTab. For more information on this FastTab, see here.
• For the desired cost areas, enter the amount of the provision resolution in the Provision to Resolve field, e.g., 20,000.00.
• Enter a significant description for the posting in the Posting Description field.
• Click Resolve Provision in the menu bar.
• The General Journals page opens with the created journal line.
• Click Post in the menu bar to post the resolution.
• Confirm the dialog window with Yes. The posting is carried out.

You have successfully resolved a provision from the calculation review.

Displaying Provisions Statement

For a better overview of your provisions, you can display a provisions statement in our ERP solution. To do so, please proceed as follows:

• Use the quick search (ALT+Q) to find the Provisions page.
• Click on Report > Print in the menu bar.
• Fill in the fields according to the following table:

• You can make further settings as needed.
• Click on Print to print the provisions statement.

You have successfully created a provisions statement.