SVCCLOPER Parameter: Why is “Not blocking“ blocking?

4 minute read time.

Are you having trouble closing your year because of a “$VERF_SVC XXX#### Revenue with apportionment not posted” message even though SVCCLOPER Parameter is set to “Not blocking”? Did the system ignore the message for all except the last month of the year?

Before we go any further, we should understand what apportionment is. We start with the activation of the Activity Code, Cost and revenue accruals (SVC) under Development, Data and parameters, Development setup. The Online help center describes what the purpose of the SVC code is: “This activity code is used to make available the Accruals management functionality. This functionality is used to post for a given date the Charges/Revenue related to a given period.”

What is the SVCCLOPER parameter that I’ve set to “Not blocking”? It is the Accruals in closing period parameter and is found under Setup, General parameters, Parameter values, Chapter CPT, Group CLO. I’ll look again to the Online help center to define the parameter: “This parameter is used to define whether or not the period closing process is blocked or not blocked if accruals have not been generated.” SVCCLOPER can be set to Blocking or Not blocking.

In my example below, you can see I’ve been negligent about closing my periods and receive the following on my Cloper report. I have a year’s worth of those “Revenue with apportionment not posted” messages.

 

 I receive the message even though I have set my SVCCLOPER parameter to Not blocking.

 

 

So, what will happen when I try to close January? I’ll go to Common Data, G/L accounting table, Periods and close the month. The log shows that the system let me close the month without addressing the apportionment.

We see January in Common data, G/L accounting tables/ Periods as being closed. This was what I was anticipating with the SVCCLOPER Parameter set to Not Blocking.

Let’s go back to the Cloper report and run for 2018. Note that January no longer appears. Cloper reports only display open periods.

I closed all the periods for 2018. The close finished with one error for December

Why did the system not let me close December? Let’s look more closely at the definitions of Blocking and not blocking

“Blocking: For each period where closing is requested, if there are accruals that have not been posted, a blocking message is displayed and the period closing process is not carried out.

Not blocking: For each period where closing is requested, if there are accruals that have not been posted, a blocking message is displayed and the period closing process is not carried out. The control only applies to closing the last period of the fiscal year (FY).”

We get message for each month, but at year end we must true-up before we can close out i.e. match revenue to the period earned

First, what is my service date period on the invoice? It stretches from 1/1/18 to 2/28/19. If I realize that the service period was a mistake, I can clear out the dates or end it as of 12/31/18. I can make the date changes even though the invoice was posted. This will remove it from the Cloper report and allow me to close.

What if the service period legitimately extends beyond year end? I can run the Accruals under Financials, Closing processings (CPTSVC). Now my invoice is only $119, but I can still run the Accruals for a small amount. I am very detailed oriented.

The function creates not only the accrual, but also the reversal. I can have it post in Final Entry status to save me some time. Common frustrations: don’t forget to select Sales accruals for sales and Purchase accruals for purchasing, select Generate entries, verify your Entry date and always select Log file so you can see what was generated.

I have an entry GEN000028 and a reversal GEN000029!

Here is my journal removing $16.56 and crediting a liability account. Where did the amount come from? My original invoice credited revenue for the full $119

There are 365 days in 2018 and then 59 days through 2/28/19. Service therefore covers a total of 424 days.

I earn $.28 per day in revenue ($119/494 days). I am moving $16.56 (59 days * $.28) of revenue out of 2018 and into 2019.

I don’t have to wait until year end to run the Accruals. Remember, I can process them quarterly, monthly, etc. I also can run them for purchase invoices with service periods. If I set the parameter to Blocking, I will have to run the Accruals each month,

 

Before I go…

You may have noticed Service period on the dropdown menu in the Detail grid in Customer BP invoices

 

You can only enter the Start date and End date on the Prepayment apportionment screen before saving the record. You can’t change the Periodicity.

From the Online help center:

“It is possible to stage the line amount (or the ex-tax amount) in analytical or general accounting according to a specific calendar. This functionality is accessible using the right click menu once the line is entered. To be operational, this functionality must be activated (activity code KIT - Italian localization and the general parameter ITAPRE - Analytical apportionment) and the automatic journal KIK2 (BP supplier analytical apportionment) must exist.”

 

Happy Closes!