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Accrual Reversal

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.

replied

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

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