Enquiry for the accruals key in pricing procedure

[Former Member]

Dear Experts,

1) My question is this that, what is the significance of 'Accrual' key in pricing procedure? & why accruals are only used for rebates?

2) what is the name of a/c where the posting of invoice is done or in other words after the invoicing which a/c is maintained from FI perspective?

Thanks & regards,

M.S.Kumar

[Former Member · Accepted solution]

Hi please see my reply in blue

1) My question is this that, what is the significance of 'Accrual' key in pricing procedure? & why accruals are only used for rebates?

Because rebate is a agreement between customer and the company,it will be settle once agreement date expire, at that time amount of rebate which had been calculated by rebate agreement will be accrualed.

2) what is the name of a/c where the posting of invoice is done or in other words after the invoicing which a/c is maintained from FI perspective?

After invoice is created,it will debit A/R9account receivable, credit revenue account Hope it helps

[Former Member · Accepted solution]

Thank you my dear experts, you have left me with no confusion at my stand.

Thanks & regards,

M.S.Kumar.

[Lakshmipathi]

why accruals are only used for rebates?

Your observation is wrong. It can also be used if any amount you want to post temporarily any account. It depends on clients' requirement.

thanks

G. Lakshmipathi

[Former Member]

Hi,

The accrual keys form part of account determination. These keys are used here to define the posting of the revenue

generated to respective account heads& to subsequent assignment to GL accounts and payment to respective

parties.

The accural key in pricing procedure is used for accumulating the values.

For example we if think that the freight charges which must be paid to the vendor for every invoice must be paid later.Then the freight charges for that vendor for a period of lets say 3 months will get accumulated in a key(Accural)for all the invoices in that period.further this key is linked to a GL account.so at the end of a period they will settle the amount to the vendor.

• Main difference is account key posts into revenue account or consumption account,

Accrual key posts into a Accrual account.

Accrual entry is passed when cost or revenue are accured but not paid or billed (Surity of the transaction) like rent, salary.

regards,