How to Define Provision Methods

[Expert]

Customer has a requirement for the Bad Debts provision process in SAP S4 HANA Cloud.

During our internal testing process, it is observed that a provision method needs to be defined to carry out the transfer posting.

We understand that the job template for Provisions for Doubtful receivables is only applicable for countries France and Spain.

However, for the transfer posting part we are not able to find a solution to define a provision method.

We have browsed through the community post, but not able to find a suitable answer to our question regarding the Transfer posting.

Expert comments would be much appreciated.

[Expert · Accepted solution]

Please review J58 Accounting and Financial close section 4.59 Credit-Risk-Based Impairment to see if this covers your requirements. It requires to activate Advance Valuation (steps are also in the same scope item).