What is value adjustment document in SAP PSM-FM - Funds Management?

SAP Term: value adjustment document

• Component: PSM-FM

• Component Name: Funds Management

• Description: Document containing the changed amount of an earmarked funds item. You differentiate between "value-increase" documents and "value-decrease" documents. Value increase documents increase the amount of the respective earmarked funds line item. Value decreases reduce the amount of the associated earmarked funds line item.

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• Key Concepts: 
  A Value Adjustment Document (VAD) is a document used in SAP Funds Management (PSM-FM) to adjust the value of an asset or liability. It is used to record changes in the value of an asset or liability due to external factors such as inflation, exchange rate fluctuations, or other market conditions. The VAD is used to adjust the value of the asset or liability in the SAP system and ensure that the correct value is reflected in the financial statements. 
  
  How to use it: 
  To create a VAD, go to the Funds Management module in SAP and select “Create Value Adjustment Document” from the menu. Enter the details of the asset or liability that needs to be adjusted, including its current value and the new value. Once all of the details have been entered, click “Save” to create the VAD. 
  
  Tips & Tricks: 
  When creating a VAD, it is important to ensure that all of the details are accurate and up-to-date. This will help ensure that the correct value is reflected in the financial statements. Additionally, it is important to keep track of all VADs that have been created as they can be used for future reference. 
  
  Related Information: 
  For more information on Value Adjustment Documents, please refer to SAP’s official documentation on Funds Management (PSM-FM). Additionally, there are many online resources available that provide detailed information on how to use VADs in SAP.