Accurals and Deferrals

[Former Member]

hi all

can any one explain what is the use of accurals and deferrals and also give me one example as how exactly it is useful.

thanks and regards

[Former Member]

Hi,

Accrual deffferal is used mainly for montjly closing

first step is to make monthly entry by FBS1. here you entere reversl reason and date in bginning. This is because we do some accrual entries on some estimation for the expenses not yet crystalize in terms of amount for that month. Here all closing provisional entries are entered.

I next month you reverse the provisional entries made for last months closing. This you do by using tcode f.81 . By this you reverse the document entered in FBS1.

Warm Regards

[Former Member]

Hi,

Accrual/Deferral documents will be used for budgetary purposes only. If you want to show your profit properly at the month end you will budget the expenses and post accruals. Once the month is over you reverse the accruals and post expenditure as usual.

Please check the links how can we create those documents inthe SAP system.

Regards,

Satish Muvva.