Simulating, Posting, Reversing Accruals/Deferrals (Gen. Contract)

Use

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. This applies not only to lease-outs, but also to the Real Estate general contract, regardless of whether it is a customer or vendor contract.

Using this function, you can compare accounting periods, or make forecasts, even if the due dates for receivables and liabilities do not correspond with the reporting periods of the profit and loss statement.

On October 1 of the current year, you pay 400 USD in advance for six months of insurance coverage. 200 USD have to be deferred, since it is for the time period from December 31 of the current year to March 31 of the following year. You are required to show this 200 USD as a deferral item in your financial statements.

The system supports both of the following:

Deferral of rent paid in advance
Accrualof rent paid in arrears

The accruals/deferrals function can be performed to the day or month.

For vendor contracts with payment of rent in arrears , you have to make accruals for expenses that are posted and paid in arrears but that have to be completely or partially allocated to earlier periods from an accounting point of view. This procedure is referred to as posting other payables .

For vendor contracts with payment of rent in advance , you have to make deferrals for expenses that are posted and paid in advance but that have to be completely or partially allocated to later periods from an accounting point of view. This procedure is referred to as deferred expense .

For customer contracts with payment of rent in arrears , you have to make deferrals for revenues that are posted and paid in arrears but that have to be completely or partially allocated to earlier periods from an accounting point of view. This procedure is referred to as posting other receivables .

For customer contracts with payment of rent in advance , you have to make accruals for revenues that are posted and paid in advance but that have to be completely or partially allocated to later periods from an accounting point of view. This procedure is referred to as deferred income .

You can simulate the accrual/deferral run first, or run it directly (refer to: Procedure).

Integration

This function is closely linked with the periodic posting functions for the Real Estate general contract.

At the level of condition items, you can set up both credit and debit flows. Normally these condition amounts are posted to the contract in their full amount.

Depending on the contract type, however, you can assign objects (for example, business entity, rental unit) to each condition type . Using equivalence numbers, you can then specify the portion of costs (credit-side conditions) or portion of revenues (debit-side conditions) that you have to transfer to the object during periodic posting. In the same way, you can distribute costs and revenues to objects during the posting of accruals and deferrals.

Prerequisites

Before you can use this function, you have to make a number of settings in Customizing. To do this, choose the following path:

Start of the navigation path Implementation Guide for Customizing Next navigation step Real Estate Conditions, Flow Types, Account Determination Maintain Flow Types Assign Reference Flow Types End of the navigation path .

You have to have already selected linear accruals and deferrals in the original flow types.

Reference flow typescontrol the posting of accruals/deferrals. Assign the following to the reference flow types: flow category EAAR and accrual/deferral type None or manual .

For each crediting flow, you have to create four new reference flow types (for example, V111, V112, V113, V114). You then have to assign these reference flow types to crediting flow types (for example, vendor basic rent V100). You define account determination for application 109 , the contract category remains 3 .

Two new G/L accounts, 470680 and 470690, were created in standard Customizing in chart of accounts INT. These two accounts are for lease-in costs in advance and in arrears. You have to create cost elements for each of these accounts. To do this, choose the following path:

Start of the navigation path SAP Customizing Implementation Guide Next navigation step Controlling Cost Element Accounting Master Data Cost Elements End of the navigation path .

If you want to be able to transfer to objects, you have to create four new reference flow types for this purpose (for example, V220-V223). You assign them to the transfer flow type (such as V200). You define account determination for application 109 , the contract category remains 3 .

Procedure

Simulation of Accrual/Deferral

On the initial screen, enter the key date for the accrual/deferral. Set the exclusive or inclusive indicator for the start date. This field indicates whether the start or end date of the time period being considered is included or not.

0 The start date is included, the end date is not included.
1 The start date is not included, the end date is included.
In the Real Estate Objects group box, you specify the contracts and the company code for which the accrual/deferral should be carried out on the key date.
In the Posting Parameters group box, you enter the date of the original document, the date on which the document is created in Financial Accounting or Controlling, and the posting period .
If you only wish to simulate the posting, select the Simulation indicator. If you actually want to post the accrual/deferral, do not set this indicator. The postings are then updated to the database.

Set the Doc. split for transf. postings (document split for transfer postings) indicator, if the contract includes distribution of costs and revenue to objects. If you set this indicator, the system uses a separate document for transfers.
In the Output Parameters group box, you can enter layouts for the lists. If you want to run the accrual/deferral in the background, you can define parameters for the batch job. Choose Batch Job Parameter .
Enter the necessary data and choose Execute .

You receive a list of the flow records generated. From the cash flow displayed, choose Objects to go to the object display. To go to the posting log (documents, posted documents), choose Documents . You can also display the error log.

To display the data of a contract, select it in the posting log and choose Real Estate object . Here you can access the stored documents as well as the correspondence.

To display or change a G/L account, select the contract in the posting log and choose G/L account .

Choosing allows you to select various services, for example, create attachment or note, send object with note, start workflow, and so on.

Procedure

In the initial screen, enter the identification for the accrual/deferral, the fiscal year of the accrual/deferral, and the reason for the reversal. Choose Execute .

Note that it is possible to reverse only the most recent accrual/deferral run.

A list of documents for the selected debit position run appears. If you want to go to the posting log, select the Reversed by column and choose Display . In the posting log, you can then go to G/L account processing by selecting a line in the list and then choosing G/L acct , or to contract display by choosing Real Estate object .

You can make a test of the reversal for all of the documents, or select a document from the list to be tested. To test the reversal, select the documents you want to test, and choose Doc. Reversal test or Reversal test all docs. If you receive the Document can be reversed message, you can continue with actual reversal. Choose Reverse Documents . The system performs the reversal.

You can also go from the list of documents for the selected debit position run to a display of the contract by selecting the Real Estate object column and choosing Display . To reach the document overview, select the document number and choose Display . You can delete the document in the document overview by choosing . The system performs the reversal.

Choosing allows you to select various services, for example, create attachment or note, send object with note, start workflow, and so on.

The reversal was carried out successfully.