Manual Accruals

[Former Member]

Hi All... I am seeking following information on Manual Accrual.

1) What is manual accrual and its purpose?

2) How manual accrual is important for rebate process?

3) Can be process rabate aggrement correctly without manual accrual?

Please help!!!

[Former Member]

Hi Mohit

The following link will help u

http://help.sap.com/bp_bblibrary/600/documentation/N73_BB_ConfigGuide_EN_DE.doc

If the “Rebate proc.” field is blank, accruals will be posted on each applicable invoice. Entering an “A” will prevent the automatic generation of accruals on invoices. The latter would make sense if you don’t base your rebate payment on actual sales, but on the specific performance of the customer (such as a display in a store or an advertisement in the paper). These rebates would be paid out as a lump sum and would require the creation of a manual accrual. For example, youwant to give the customer a $5000 rebate if he displays your product at the entrance of his store. You then would create a one-time manual accrual of $5000. Once you have proof of compliance by the customer, you can create a lump sum payment in that amount, which would reverse theaccrual and pay the amount to the customer. With the “Provision con.” Field, you determine if you want to reverse your accruals at time of partial payment (we will cover payments later in that paper). Leaving this field blank will reverse the accrual; a value of “A” will not reverse it

If you want to allow manual accruals, you need to indicate this and define the respective order type. “B4” is the standard SAP order type for manual rebate accruals. You are able to create the same rebate agreement automatically in regular intervals with the same data (but different validity dates). To turn on this feature, utilize the “Arrangement calendar” field to do that. You can add a standard SAP calendar, or your own defined one, to schedule the automatic creation of rebate agreements. In a separate step, schedule job RV15C005, which can also be accessed via transaction “VB(D” (yes, that’s the left parenthesis in the transaction code), to automatically extend your agreements. Manual payment The “Manual payment” section of the rebate agreement defines how much can be paid out during a partial settlement. You would use partial settlements if, for example, the rebate agreement is defined for a full year, but the payouts are supposed to happen on a monthly, quarterly, or anycustom defined schedule.You can choose whether you want to allow partial settlements only in the amount of what you accrued so far. This is a good idea if you don’t want to pay out more than what the customer is entitled to. However, you can also allow any payment amount, if you choose so. As with manual accruals, you need to define the partial settlement order type, which is “B3” in the standard SAP system. If you don’t want to wait to reverse your accruals until the final settlement, you can do so for the partial settlement by checking the “Reverse accruals” box. Just as with agreements, you can also schedule regular payments by entering the appropriatecalendar in the “Settlement periods” field. Use program RV15C001 (accessible through transaction “VB(7”) to schedule your payment runs. This will create automatic payments according to the defined schedule. The reversal of the accruals is independent from the payment amount of the final settlement. For example, if you accrued $10,000 over a given period, but the customer did not reach their sales goal, you might want to pay only half that amount or nothing at all. No matter what the payment amount is going to be, the total remaining accrued amount for the agreement is reversed.

Reward if useful to u

[Former Member]

manual accruals:

it is the process of manually accruing the discount amount instead of automatically.

purpose : it is a useful in the cases of lump sum payments and accrual correction,where manual accruals plays a major role.

2.it is important for posting any correction to the already accrued amounts.

3. yes, we can post rebates without manual accruals.not an mandatory.

to accrue manually enter the rebate amount with anegative sign and positive for

settlement

regards

sriram.

[Former Member]

Hi Sriram,

Can you pleaese tell me how do we post AP accrual in SAP. It does have the same dollar amount every month , so we canot do a recurring entry. Is there any other transaction code to post accrual. Then we will have to reverse it and book it for next month. How is it done.

Thanks

[Former Member]

Hi

The Manual Accruals component allows you to calculate and post accruals in General Ledger Accounting automatically.

You enter the date once for a business transaction that you have to enter. On the basis of this data, the system calculates the amounts to be accrued. You can also simulate these amounts. In each period, you can start an accrual run, meaning that all accruals are posted for the various business transactions.

The functions in Manual Accruals support the use of Structure parallel valuation methods. This means that you can also calculate and post accruals for a number of accounting principles.

The Manual Accruals component is based on the Accrual Engine tool. The transactions to be accrued are managed in Manual Accruals. The processes for calculating and posting accruals, on the other hand, are managed in the Accrual Engine. For more details, see Manual Accruals and the Accrual Engine.

Posting accruals manually can be useful in different situations such as:

• Lump sum payments

• Accruals correction

You can control at which time and for which amount the accruals should be posted.

You can build accruals for a particular condition record or reverse them in part or in full.

When you save the rebate agreement, the system will automatically create a credit memo request. The system uses this document to create a credit memo. When the credit memo is released, the accruals are posted to FI.

If you have posted accruals manually, but these have not been passed on to financial accounting, the manual accruals and manual payments in the rebate agreement are blocked.