We implemented REFX a few years ago and now would like to use the revenue deferral process for a set of contracts that are prepaid.

[former_member587436]

For instance, we have a set of contracts that begin April 1 of each year and end March 31 the following year.  We need to be able to post the full amount to a deferred balance sheet account and draw on it each month.  Currently, the yearly amount is posted using a condition for rent.  It posts to a P&L revenue account.  How can we move it from the P&L revenue account, post it to a deferred balance sheet account, then create a posting each month to post it back to the P&L revenue account?

I read note 829676.  It looks like I need to assign accrual types to the flow types for the condition, but I am not clear about this.  Any help would be appreciated.

Thanks,

Jane

[rajnikant_verma]

Hi Janie,

You can use Accrual/deferral process of contract still if u have implemented REFX some year back. You can not assign any Accrual/deferral type directly to contract, it can be only assigned to flow type only. And based on your posting date (advance date) system will automatic generate list of entries for deferral process.

          You need to perform following step to run the deferral process.

* You need to define some accrual type under some work area for e.g. RE based on your requirement by copy the standard one. Path:Accrual/Deferral>Accrual/Deferral> Basic setting>Accrual type>Define accrual type.

* You need to define accounting principle(FICO person normally do) and assign to company code.Path:Accrual/Deferral>Accrual/Deferral> Basic setting>Accounting principal

* You need to do some more setting under the tab of Accrual/Deferral posting

*Then assign the deferral type to the flow type.

After this system will check the advance posting date only for those flow type in which you have assigned the accrual/deferral type.

Thanks

Rajnikant Verma

[former_member587436]

Thanks for assistance.

Janie

[bowen_cao]

Dear Jane,

You are right, the note 829676 which is a Consulting note about Accruals/deferrals in RE-FX.

To assign accrual types to the flow types for the condition, firstly, please create accrual types with below IMG:

T-CD: RECACUST

Accounting -> Accrual/Deferral -> Accrual/Deferral->Basic Settings -> Accrual Types -> Define Accrual Types

Then, assign the accrual type to the flow type with the IMG:

T-CD: RECACUST

-> Conditions and Flows

-> Flow Types

-> Define Flow Types

Regards,

Bowen

[former_member587436]

Thank you for your response.

Janie