Executing Accrual/Deferral of Interest/Charges (SAP Library - SAP Financial Supply Chain Management (FIN-FSCM))

Executing Accrual/Deferral of Interest/Charges

Use

Normally, an account is settled and posted to accordingly on a monthly basis. If you manage accounts that are settled over longer periods (for example, quarter yearly), with the help of the accrual/deferral function, you have the option of calculating the interest and/or charges that would have occurred during a monthly settlement.

After accrual/deferral you can tell if, as a result of accrual/deferral, interest and/or charges were credited or debited on the general ledger. The following principle statements apply:

Transaction types for "Debit interest", "Plus debit interest" and "Minus debit interest" are all considered to be interest income, meaning that "Minus debit interest" is not interest expense.
Transaction types for "Credit interest", "Plus credit interest" and "Minus credit interest" are all considered to be interest expense, meaning that "Plus credit interest" is not interest income.
Display of the amounts is always in relation to a +/- sign, meaning the sign "-" is for credit postings and "+" is for debit postings.

Procedure for executing accrual/deferral

Choose Periodic tasks ® General ledger ® Accrual/deferral.

Specify the bank area for which the accrual/deferral is to take place and an accrual/deferral key date.

Select the accrual/deferral types to be executed.

It is advisable to execute a test run before the update run. To do this, select the appropriate selection field. The information regarding conditions, balances (calculation basis), calculation results and their total, and also the interest income tax transfer are stored in the spool output.

Choose Execute.

Result

The result of accrual/deferral is posted to a separate account on the general ledger (after general ledger transfer) and taken off the books again on the next day. This takes place in one single run; you do not have to start the taking off the books separately.

This graphic is explained in the accompanying text

There is a report for accrual/deferral that displays the detail data on the postings on the general ledger.

Procedure for viewing the accrual/deferral list

Choose Information system ® General ledger transfer ® Interest accrual/deferral: Detailed statement of the created interest accrual/deferral.

Enter the bank area, account number, posting date of the accrual/deferral and the product.

The detail lists for interest income and expense as well as the charges income and expense are managed separately and totaled within a currency.

If required, you can choose a display currency and the amounts are then additionally converted into this currency.

Result

You now have an overview list. From a line in this list you can call up the next degree of detail, and from this degree of detail, a higher degree of detail, right up to the transaction type.

Note Other notes

The interest rate is not output, since this can change during the period in question. You can find information on this if the spool list for interest accrual/deferral is set accordingly.

The highest degree of detail shows the interest per account and transaction type, although it is not possible to tell which interest incurred for which balances. However, this can also be seen in the spool list if the appropriate parameter is set.

Error handling:

In the case of an error you can restart accrual/deferral. Choose Periodic tasks ® General ledger ® accrual/deferral.

The program for accrual/deferral is completed even if there is an error in Customizing for general ledger transfer. You can review the errors that have occurred here in the application log.