Accrual Reversal

[Former Member]

Hi Guys,

I want to know the process of Accruals in SAP. What is the reason for posting accruals and also I have a business requirement which is like this

If a user posts a accrual document on a certain date in a month, When we reverse the accrual documents, the reverse date should default to the first of the next month.

Is this possible.

Thanks,

Srikanth.

[Former Member · Accepted solution]

Hi Srikanth,

Accruals are expenses which are due for the month and payment is made in next month.

For eg. Consider Rent for the month January 2008 is paid on 5 th Feb 2008.

Posting of Rent entry will be made on payment date i.e on 5 th Feb 2008, (Rent Account Debit -- Bank account Credit).

Actually speaking Rent is paid for the month of January, so Accrual Poating to be made on 31 January 2008. (Rent Account Debit --- Accruals Credit)

This Accrual will be reversed on 1 Feb 2008. So that on Payment of rent payment entry will be posted.

In the month of Feb 2008, 2 entries are posted.

1. ACcrual reversal Entry

2. Rent payment entry.

Analyse the entries posted in the month of Feb 2008. You will find answer for your question.

Regards

Velu Mudaliar

India

[Former Member · Accepted solution]

Thank you .

The explanation was great.

Srikanth.

[Former Member]

Thanks for the same.

I think it takes time to update point status in my profile

Once again thanks

Regards

Velu Mudaliar

[Former Member]

Hi Srikanth,

Thanks can be expressed by assigning poinys too.

This matters in Forums, I hope you understand.

Regards

Velu Mudaliar

[Former Member]

Dear Velu,

I have already assigned points to you before expressing thanks.

As an addition, I just told thanks.

Srikanth.

[Former Member]

Hi Srikanth,

There are many accrual posting according to different module,

Which one you are referring to.

In Treasury & Risk management module reversal of accrual transactions can be done automatically at the time of posting accrual transaction itself with different reversal date.

Prasad Nambiar

[Former Member]

This message was moderated.

[Former Member]

Hi Srikanth,

The purpose of passing accrual entries are to show the as on date income due from and expenditure due to a customer /vendor as per financial statement (Trial Balance & Balance sheet) on any key date or also on a daily basis and thereby reach to a correct balance sheet figure of an organisation.

Therefore, usually the very next day it will be reversed, and the actual payment/receipt will happen on the due date of the respective transactions. This is common to all business scenarios.

Prasad Nambiar

[Former Member]

Hi,

The Accrual document use for mont ending provision and at the the time of accrual document system need date of reversal.

Example

Document date 30.09.08

Expenses a/c Dr.

Provision a.c Cr.

Reversal Date is 01.10.2008.

Need more clarification please revert.

Pankaj

[Former Member]

Hi Pankaj,

I want to know the difference between the reversal date in FBS1 while posting accrual entry and F.81 while doing the reversal of accruals.

Actually why do we reverse the accruals??Please clarify.

Thanks,

Srikanth