Accrual Calculations Using the Percentage Method
Use
With the percentage method, the costs to be accrued are determined in cost accounting using a percentage rate on a reference cost element. The advantage of this method over using a recurring entry in the Financial Accounting component (FI) is that accrual is based on the actual costs posted. This method is useful for calculating accrual for non-wage labor costs such as vacation bonuses.
Example
You plan labor costs of $10,000 per month on cost center 4210. You define a 10% rate on labor costs to cover the vacation bonus. This results in additional plan costs of $1,000 per month. You also define a 10% rate on the actual costs of $2,000 per month. This results in additional actual debits of $1,200 per month.
The accrued amount in cost accounting equals $1,200 USD per month, totaling $14,400 for the entire year. The credits are posted to a credit object, an order, each month. In external accounting, the expenses of $15,000 are posted in the month of June to the order. You can display the balance between external and internal accounting at any time on the order. You can also transfer the balance to the operating profit.