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Individual Value Adjustment

Gradual devaluation of doubtful receivables before write-off.

Individual value adjustment (IVA) devalues a receivable when payment becomes uncertain – for example, when a customer faces insolvency. Unlike an immediate write-off, IVA allows for gradual devaluation through configurable levels (e.g. 30%, 50%, 100%) and is typically a preliminary step before a complete write-off.