What do you configure for regrouping receivables and payables?

The correct answer is D. Sort Method. Sort Method is the configuration used for regrouping receivables and payables because it defines how the system classifies and organizes open items into groups based on criteria like remaining due dates or maturity - which is precisely what regrouping (reclassifying short-term…

Closing Operations

Question

Options

ACalculation Method
BValuation Method
CProvision Method
DSort Method

How the community answered

(49 responses)

A
2% (1)
B
6% (3)
C
12% (6)
D
80% (39)

Explanation

Sort Method is the configuration used for regrouping receivables and payables because it defines how the system classifies and organizes open items into groups based on criteria like remaining due dates or maturity - which is precisely what regrouping (reclassifying short-term vs. long-term items) requires.

Why the distractors are wrong:

A. Calculation Method - applies to processes like interest calculation or depreciation, not regrouping logic.
B. Valuation Method - governs foreign currency valuation of open items, a separate closing activity.
C. Provision Method - used for bad debt provisions (doubtful receivables), not for regrouping/reclassification.

Memory tip: Think of "regrouping" as literally re-sorting items into new groups - so you configure a Sort Method. The word "sort" is embedded in the concept of reorganizing/regrouping.

Topics

#regrouping#receivables and payables#sort method#closing configuration

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