Example: Sales Deferral Calculation (SAP Library

Example: Sales Deferral Calculation

Starting Point

You have the following sales data that can be used as a calculation base:

Net advance payment for sales: 20,000.00 per month to be paid in arrears every quarter / output tax 16%
Settlement periods: annually (01/01-12/31)
Planned sales: 3 million
Agreements
Minimum rent / Minimum sales: no agreements
Sales reporting interval: every quarter with the following sales gradings:

Graduated	Sales from	Sales up to	Annual rent as a % of the sales
1	0	2 million	10 %
2	2 million	0	5 %

Determination of Deferral Amount

The deferral amount is determined in the following way:

Post the debit position according to the debit position frequency. In this example, post the first debit position on 03/31/1998
Post the deferral monthly. The first deferral for the first quarter is made on the key date 01/31/1998, the second deferral on the key date 02/28/1998 and the third one is made on 03/31/1998.
Sales reports are made once a quarter. The sales reports are made in the first month of the following quarter. In this example, the first sales report is made in April 1998. This means that this sales report is taken into account for the following deferral (to be made for the second quarter). An exception to this rule is the procedure used for taking planned sales into account).

Quart.		Reported sales (millions)			D=Deferral date DP=Debit position date S=Sales settlement date	Results Procedure 1	Results Procedure 2	Results Procedure 3	Results Procedure 4
Year 1998						Deferral amount
1	0.04 (in April)			D=01/31/98		0.00	0.00	20833.33	20833.33
				D=02/28/98		0.00	0.00	20833.34	20834.34
				DP = 03/31/98 D=03/31/98		0.00	0.00	20833.33	20833.33
2	1.20 (in July)			D=04/30/98		4000.00	5407.41	20833.33	9171.23
				D=05/31/98		0.00	1351.85	20833.34	17917.81
				DP = 06/30/98 / D=06/30/98		0.00	1351.85	20833.33	17917.81
3	2.00 (in October)			D=07/31/98		120000.00	123155.00	20833.33	31102.74
				D=08/31/98		0.00	18752.31	20833.34	19801.37
				DP = 09/30/98 D=09/30/98		0.00	18752.31	20833.33	19801.37
4	0.96 (in January 1999)			D=31/10/98		138000.00	95057.12	20833.33	71627.85
				D=11/30/98		0.00	26382.79	20833.34	24984.02
				DP = 12/31/98 D=12/31/98<0}		0.00	26382.79	20833.33	24984.02
Year 1999						Deferral amount
1	å 1998 = 4.2		D=01/31/99			48000.00	6593.41	20833.33	31025.11
			S=02/28/99->calculated sales-based rent			310000.00	310000.00	310000.00	310000.00
			D=02/28/99-> neutralizing the deferral			-310000.00	- 310000.00	- 229166.66	- 289166.66
			DP = 03/31/99 D=06/30/98			0.00	0.00	20833.33	20833.33

Posting Procedures

Sales-based rent settlement

Annual sales	Calculation according to graduation 1	Calculation according to graduation 2	Net annual sales-based rent to be paid
4200000.00	2000000 * 0.1 = 200,000.00	2200000 * 0.05 = 110,000.00	310.000.00 (with 16% output tax = 359,600.00)

The system transfers the credit resulting from the advance payment (net 240,000.00 / gross 278,400.00) to the customer. The system enters the sales-based rent as a receivable. The resulting balance is receivable -> net 70,000.00 / gross 81,200.00.

Deferral

As the sales-based settlement is posted in February of the following year, the subsequent deferral neutralizes the deferral postings resulting for 1998.

Deferral on key date 02/28/99	The system generates the posting records in the following way
	( Posting key) account to (posting key) account (amount)
Amounts transferred from procedure 1	(40) Rent paid in arrears (310,000.00)	(50) Other receivables
	(01) Customer receivables (310,000.00 euros)	(50) Revenue from third-party rental