Accrual Calculation 

Use

Operating expenses are often allocated differently in financial accounting than in cost accounting. If, for example, an expense incurred in external accounting covers a whole year, you must assign a proportion of the whole to each individual cost accounting period. You distribute irregularly-occurring expenses, according to cost-origin, on the months in which they are incurred. This allows you to avoid irregularities within cost accounting. Costs allocated in this manner are termed

accrued costs.

The even distribution of a one-off expense is referred to as

time-based accrual calculation. With the aid of the accrual calculation functions, you can take these costs into account in the Controlling component.

Features

You can calculate accruals in two ways.

  • You can post accruals in the Financial Accounting component (FI) using recurring entries and pass the accruals along to the Controlling component using a special cost element for accrual allocation. Here, the accruals (or imputed costs) are calculated in financial accounting, not internal accounting.
  • You can calculate accruals in the Controlling component based on the costs posted there. To do so you can use the following approaches:

-

Accrual calculations using the percentage method

-

Accrual calculations using the target=actual method

If you use either of these procedures, you must ensure that subsequent postings are made in the Financial Accounting component if you want to display the accruals postings there as well.

Actions

To execute

accrual calculation, you must define the necessary data and carry out the following steps, according to the accrual calculation method you are using:
  • For accrual cost calculation using the percentage method, you must first create an overhead structure (see:
Defining the Percentage Method).
  • For accrual calculation using the target=actual or the plan=actual methods, you must create the corresponding accrual cost elements. You must also carry out cost element and activity type planning (see:
  • Maintain Data for Target=Actual Accrual Calculation).

    You can maintain data for an overhead structure, as well as for target=actual credits, during system configuration and for the application component itself. You must enter this data as

    controlling area dependent.

    This controlling area dependent data includes:

    • For the percentage method

    -

    Calculation bases

    -

    Overhead percentage rates

    -

    Credit objects
    • For the target=actual method

    -

    Target=actual credits