Use

In Flexible Real Estate Management, accruals and deferrals are used to post rents and operating costs to the correct periods as the revenue is earned or benefits received from the expense. The accrual/deferral process enables you to show receivables and revenues, where posting of the actual document does not correspond with when the expense was incurred or revenue earned, in financial statements issued on a particular key date.

Using this function you can also perform a periodic comparison or prognosis even if receivables or payables are posted on an irregular basis due to contractual obligations.

Integration

The accrual/deferral functions in the accounting component of Flexible Real Estate Management are based on the SAP Accrual Engine tool.

For more information, refer to Manual Accruals

Prerequisites

Make the required settings in Customizing for the Accrual Engine. Choose:

SAP Customizing Implementation Guide → Flexible Real Estate Management (Enterprise Extension) → Accounting → Accrual/Deferral

For more information on the settings, refer to the IMG documentation Accrual/Deferral Using Accrual Engine in RE Environment using the same path.

Make your settings in the following IMG activities:

Create accrual types for the RE-FX component in: Define Accrual Types

Enter an accounting principle for the RE-FX component in: Define Customer Settings for Components

You have to enter a standard accrual method in: Define Standard Settings for Accrual Calculation. Since the accrual objects are created automatically, the accrual method you enter here is adopted.

In Customizing for Flexible Real Estate Management , assign the necessary accrual types from the Accrual Engine to the flow types for which accruals/deferrals are posted. Choose:

SAP Customizing Implementation Guide → Flexible Real Estate Management (Enterprise Extension) → Conditions and Flows → Flow Types → Define Flow Types

You created the accrual types for accruals and deferrals for the RE-FX component:

SAP Customizing Implementation Guide → Flexible Real Estate Management (Enterprise Extension) → Accounting → Accrual/Deferral → Accrual/Deferral → Accrual/Deferral Posting → Account Determination → Simple Account Determination → Define Set of Rules

Here you entered the document type for each accrual type.

You entered the accounts for the given accrual type.

Features

The system can make the accruals and deferrals to the day or month. The system differentiates between accruals and deferrals:

Deferral

When rent is paid in advance – for example, quarterly rent paid at the start of the quarter – the revenue is posted in the first period of the quarter during periodic posting. The financial statement and profitability statement , however, require that the revenue be shown in later periods through postings in these periods.

The deferral makes a clearing posting that debits balance sheet values and credits already-due receivables in subsequent periods.

Example: Deferral of Rent Paid in Advance

Accrual

When rent is paid in arrears – for example, quarterly rent paid at the end of the quarter – the revenue is posted in the last period of the quarter during periodic posting. The financial statement and profitability statement, however, require that the revenue be shown in earlier periods through postings in these periods.

The accrual makes a clearing posting that debits balance sheet values and credits not-due receivables in earlier periods.

Example: Accrual of Rent Paid in Arrears

The following functions are provided for calculating, posting, and reversing accruals and deferrals:

In RE-FX:

Accruals/deferrals: contracts (data is transferred from RE-FX to the Accrual Engine and at the same time, accrual postings are made)

In the Accrual Engine:

Display Accrual/Deferral Results

Reversal of Accrual/Deferral Postings (Reversal of the Data Transfer)

Activities

On the SAP Easy Access screen, choose:

Accounting → Flexible Real Estate Management → Accounting → Accrual/Deferral

For more information on the procedure, refer to Accruals and Deferrals for Conditions Paid in Advance or Arrears .