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 termedaccrued costs.
The even distribution of a one-off expense is referred to astime-based accrual calculation. With the aid of the accrual calculation functions, you can take these costs into account in the Controlling component.
You can calculate accruals in two ways.
-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.
To executeaccrual calculation, you must define the necessary data and carry out the following steps, according to the accrual calculation method you are using:
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 ascontrolling area dependent.
This controlling area dependent data includes:
-Overhead percentage rates