What is reduction in SAP FI-PRA - Predictive Accounting?

SAP Term: reduction

• Component: FI-PRA

• Component Name: Predictive Accounting

• Description: The adjustment of the value of a prediction in response to the creation of the actual journal entry. For example, in the sales process, when a goods issue is created for an item, the prediction for the goods issue of this item is reduced by the creation of a new corresponding predictive journal entry.

Smart SAP Assistant

• Key Concepts: 
  Reduction is a feature of the FI-PRA Predictive Accounting component of SAP. It allows users to reduce the amount of an invoice or payment by a certain percentage or amount. This feature is useful for businesses that need to reduce the amount of an invoice or payment due to a variety of reasons, such as discounts, returns, or other adjustments.
  
  How to use it: 
  To use the reduction feature in FI-PRA Predictive Accounting, users must first select the invoice or payment they wish to reduce. Then, they can enter the percentage or amount they wish to reduce it by. Once this is done, the system will automatically calculate the new total and update the invoice or payment accordingly.
  
  Tips & Tricks: 
  When using the reduction feature in FI-PRA Predictive Accounting, it is important to double-check that the correct percentage or amount has been entered. This will ensure that the correct total is calculated and that no mistakes are made. Additionally, it is important to keep track of any reductions made so that they can be accounted for later on.
  
  Related Information: 
  The reduction feature in FI-PRA Predictive Accounting is closely related to other features such as discounts and returns. It is important to understand how these features work together in order to ensure accurate accounting and financial reporting. Additionally, understanding how these features interact with each other can help businesses make more informed decisions when it comes to their finances.