Accruals/Deferrals

Question

Hi All,
I am familiar with the accrual and deferrals in accounting but I am having a hard time mapping scenario in SAP. the t.code FBS1 (enter accrual) and F.81(reverse accrual) are just creating an entry and reversing it at end of month. But I dont get the big picture as how it overall affects the expense account and the deferral account.
Eg: if company pays prepaid rent (deferred rent - asset) 3 months in advance (jan feb mar), how does this map to the system? This is what I have so far (monthly rental $300):
Company receives invoice (jan 1):
Dr prepaid rent $300  (jan)
Dr prepaid rent $300  (feb)
Dr prepaid rent $300  (mar)
         Cr vendor      $900
(i am ignoring the vendor payment here to make it short)
End of Jan - Jan 31st:
Dr rent expense $300
    Cr prepaid rent   $300   (jan)
End of Feb - Feb 29:
Dr rent expense $300
     Cr prepaid rent $300 (feb)
End of Mar - Mar 31:
Dr rent expense $300
     Cr prepaid rent  $300 (mar)
The end of month entries can be added as recurring but I don't see where I would setup accrual and reverse it at end of month in this case?  Is there any online document with scenario on how accruals/deferrals work in SAP?
Thanks

Answer 1

Hi Kashif ,
Attached is some info....have a look.Take it to a word document & read it. Award points if useful.
Prepayments and Accrued Income / Accrued Expense and Deferred Income
Accrual / Deferral Posting
Use
To fulfill the period definition of expenses, you can enter accrual / deferral documents and, in a subsequent step, cancel them (collective processing).
The reversal date you define in the accrual / deferral document becomes the posting date of the canceling document.
Reverse posting:
The program creates a list of all documents and specifies whether a reverse posting is possible (test run) or has been made (update run). You can print the list out. After the test run, the reverse postings can be created from the list of all the documents for which a reverse posting is possible.
Prerequisites
You have posted a document in this fiscal year, but the expense, for example, also applies to the following year.
For example, you post an invoice for rent amounting to INR 11,000.00, which is issued over a period from 01.03.current FY to 28.02.current FY+1.
1.   Access the activity using one of the following navigation options:
Menu path     Accounting  Financial Accounting  Accounts Payable  Document Entry  Invoice
Transaction code     FB60
2.   In the Enter Vendor Invoice: Company Code BP01 screen, enter the required data.
Description     R/O/C     User action and values     Comment
Company Code          BP01     
Vendor          A2000     
Invoice Date          01.03.Current FY     
Posting Date          01.03.current FY     
Reference          User-defined text     
Amount          12000     
G/L Acct           58062000     
D/C          Debit     
Tax Code          V0     If required make the entry
Jurisdiction Code          IN00     If required make the entry
Amount in Doc. Curr.          *     
Cost Center          1101     
3.   Post this document.
4.   Access the activity using one of the following navigation options:
Menu path     Accounting  Financial Accounting  General Ledger  Account  Display/Change Line Items
Transaction code     FBL3N
5.   In the G/L Account Line Item Display screen, enter the required data.
Description     R/O/C     User action and values     Comment
G/L Account Selection               
G/L Account          58062000     
Company Code          BP01     
Line Item Selection               
Status          Select “All Items”     
          Execute (F8)     
The total expenditure pertains to the next financial year also debited in the current financial year.  The amount pertains to the next financial year about Rs.11000/- to be transferred to next financial year by using the Accrual / Deferral postings option.
Entering Accrual / Deferral Postings
1.   Access the activity using one of the following navigation options:
Menu path     Accounting  Financial Accounting  General Ledger  Periodic Processing  Closing  Valuate  Enter Accrual/Deferral Doc.
Transaction code     FBS1
2.   On the Enter Accrual/Deferral Doc.: Header Data screen, enter the required data.
Description     R/O/C     User action and values     Comment
Document Date          31.03.current FY     
Posting Date          31.03.current FY     
Type          SA     
Company Code          BP01     
Currency          INR     
Reversal Reason          05     Accrual / deferral posting
Reversal Date          01/04/current FY      
PstKy          50     First line item
Account          58062000     
          Enter     
Amount          11,000.00     
Tax Code          V0     
Jurisdiction Code          IN00     
Cost Center          1101     
PstKy          40     Second line item
Account          24700000
          Enter     
Amount          *     
Text          Accrual / deferral posting     
3.   Post this document.
4.   Call up the line items for account 58062000 of 31.03.of the current fiscal year as follows:
Menu path     Accounting  Financial Accounting  General Ledger  Account  Display/Change Line Items
Transaction code     FBL3N
5.     In the G/L Account Line Item Display screen, enter the required data.
Description     R/O/C     User action and values     Comment
G/L Account Selection               
G/L Account          58062000     
Line Item Selection                
Status          Select “All Items”     
Posting Date          31.03.current FY     
          Execute (F8)     
Reversing Accrual / Deferral Postings
Prerequisites
The document number for the next financial year has been defined.
Posting period must be allowed to post the document.
Procedure
1.   Access the activity using one of the following navigation options:
Menu path     Accounting  Financial Accounting  General Ledger  Periodic Processing  Closing  Valuate  Reverse Accrual/Deferral Document
Transaction code     F.81
2.   On the Reverse Accrual/Deferral Documents screen, enter the required data.
Description     R/O/C     User action and values     Comment
Company Code          BP01     
Fiscal Year          Current fiscal year     
Execute     Test run          
     Update run          
3.   Call up the line items for account 58062000 and compare with the descriptions provided in the
      previous steps.