Provisions

CAUTION!

The following instruction doesn’t contain information on the applicable tax laws.
For more information on provisions, please seek advice from your tax consultant/auditor.

TRASER DMS 365 enables you to map provisions. These are used to account for potential future obligations 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

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:

Note

We recommend creating a separate provision posting group for each customer to avoid posting errors.

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:

Field	Description
Code	Enter a unique code for the new provision posting group.
Description	Enter a significant description for new provision posting group.
Additions Account	Enter the G/L account used for addition postings.
Usage Account	Enter the G/L account used for usage postings.
Reversal Account	Enter the G/L account used for reversal postings.
Reclassification Account	Enter the G/L account used for reclassification postings.
Addition Balance Account	Enter the G/L account used for addition balances.
Reversal Balance Account	Enter the G/L account used for reversal balances.

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:

Note

We recommend using different provisions for different service items in maintenance contracts. This facilitates the management of provision amounts, e.g., when purchasing spare parts.

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:

FastTab	Field	Description
General	Description	Enter a unique description for the provision.
	No.	This field is automatically filled with the number series selected in the General Ledger Setup.
	Valid From	Enter the date from which the provision shall be valid.
	Valid Until	Enter the date until which the provision shall be valid.
	No. of Maintenance Contracts	This field indicates the number of maintenance contracts linked to this provision. Click on the number to open a list of the maintenance contracts.
	Value	This field is automatically filled with the posted values of the provision. Click on the number to open a list of the values.
	Assumptions	You can enter comments about the provision in this text field. This text will also be displayed in the FactBox of the provisions list.
Posting	Provision Class Code	Enter a previously set up provision class.
	Provision Posting Group	Enter a previously set up provision posting group.

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.

Tip

To display an overview of the related entries, click on Post > Preview Posting in the menu bar. You can display further details by selecting a line and clicking on Show Related Entries in the menu bar.

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:

Field	Description
Type	Select the Provision option from the dropdown list.
No.	Select the related provision from the dropdown list.
Description/Comment	Enter a significant description.
Quantity	Enter the desired quantity.
Unit Price Excl. VAT	Enter the amount of the used provision.
Line Amount Excl. VAT	This field is automatically filled by the system once you entered an amount in the Unit Price Excl. VAT field.

Your changes 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 obligation 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.

Tip

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