Want to Automate Your Monthly or Yearly Accruals?

  • by Tony Rogan, Consultant, SAP America
  • November 15, 2004
SAP R/3 4.7 functionality offers the choice of automating your accrual processing. Learn about the SAP R/3 Accrual Engine and see how it compares to R/3's accrual/deferral feature.
Key Concept
The Accrual Engine, new to SAP R/3 Release 4.7, allows you to manage your accruals and calculate the amount of the accruals in one central location. The Accrual Engine improves on its predecessor in that it allows for a more flexible calculation of the amount to be accrued. Its drawback is that it must be provided with an amount; it cannot determine an amount to accrue from data posted elsewhere in the system.

SAP R/3 4.7 has a functionality to help you calculate and post month-end accruals within R/3. The Accrual Engine can help create, calculate, and manage all of your accruals for processing, which saves precious time during month- end close. I will examine the Accrual Engine and what it offers compared to R/3's accrual/deferral feature.

R/3 provides functionality for entering, posting, and the subsequent reversal postings of those accrual entries using the accrual/deferral feature. However, this functionality doesn't differ much from creating a normal journal entry. The two main differences are that when you use the accrual/deferral feature, you enter a reversal date on the entry (created using transaction code FBS1), and R/3 generates reversal postings using program SAPF080R (transaction F.81).

The accrual/deferral feature does not, however, calculate the amount entered in the accrual postings. It allows for entering storage of the amount, accounts, and cost objects impacted and automatic reversal on a specified date, but cannot calculate the accrual amount if it changes each period.

Tony Rogan

Tony Rogan is a certified FI/CO consultant at SAP with eight years of SAP consulting experience. He began his SAP career with a Big 5 consulting firm and over the years has worked in various industries, including utilities, non-profit, high-tech, consumer goods, and process manufacturing. Tony’s expertise lies in the Financial and Controlling modules, with emphasis on Cost Center Accounting, Profitability Analysis, Internal Orders, Profit Center Accounting, Special Purpose Ledger, Project Systems, and Product Costing. He also has experience working with Enterprise Consolidations, LIS, and Business Information Warehouse.

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