Accrued Expenses

Hello
I want a clarification.
Here we have accrued some expenses in accrued factory expenses. Factory expenses (dr.) and accrued factory expenses (cr.). Now the user is trying to post a PR and there he is using account assignment category 'K' (Cost Centre) and trying to put the accrued GL account (bal sheet account) and the system is not allowing it.
Please tell me is it possible to use a balance sheet account in the PR when you use account assignment category K there ?

Hi
It is just a warning/information message, as system is not expecting you to enter a cost center while posting to a Balance sheet account. Also system stores the cost center only as statistical and does not create any records in CO.
However, you can choose to post along with cost center if the information in helpful for the business.
Regards

Similar Messages

Error while clearing a document.

Dear All,
When I try clear from account 2370500 items, which will generate exchange rate differences, I get the following message: Ex.rate diff.accts are incomplete for account 0002370500 currency EUR. The other items can be cleared. Please complete the account 2570900.
The GL account 2370500 is an Accrued expenses / Other, short-term, external account.
I've already maintained the OBA1 and OB09 settings for this account, But still I'm getting the error while clearing the account.
Is it possible through some Valuation reversal in F.05? If yes, Please let me know the detailed procedure for reversal of the document.
Please help me out in this issue.
Thanks a lot in advance!!

Hi,
I got that field in master data, but I've faced lot of issues as exactly same now,After maintaining the OBA1 settings I always able to post. Do you think maintaing the necessary settings in the master data relating to the exchange rate key I'll be able to clear the documents b'coz previously I've not maintained these kind of settings you're talking about.
Could you please tell me how it'll affect to my problem after maintainong the necessary settings there?

No FM payment update (VT57) for clearing documents

Hello all,
I have payment updat online active, and I'm trying to post a payment after a FI clearing, but the system is not able to find the invoice posted in FM and create value type 57.
Basically, I'm posting an account payable but still don't know which vendor I must pay in this moment.
FB50:
Debit: Expense (commitment Item 30/3)
Credit: Accounts Payable (Commitment Item 60/3)
Value type 54 is created.
After I find out which vendor I must pay, I'm posting the vendor invoice against the account payable account posted before.
Debit: Accounts Payable (Commitment Item 60/3)
Credit: Vendor (Commitment Item 60/3)
When I make the payment of the vendor, the systems shows two warning messages (FICUSTOM114 and FMUP027) and pays the invoice. Although the payment is ok, as the systems does not find the FMinvoice, the FM reports are inconsistents, the payment is not reflected in FM, and the Value Type 57 (payment) is not posted.
If I post the expense directly for the vendor and pay the invoice, the systems is fine and the Value Type 57 is created.
Did you have this issue before? Waiting for your comments.
Best Regards,
Carlos.

Dear Eduardo,
I'm trying to understand your query above, but I’m confused with your below statement:
"Basically, I'm posting an account payable but still don't know which vendor I must pay in
this moment. FB50"
As per your explanation this is not the system issue, actually you are not following the appropriate process, e.g. if you don't know the vendor, and you must want to pay, which is strange.....
In practical if you don't know the vendor, it’s the situation of Accrued expense: expense is recognized before cash is paid out.
Accrued expense is a liability whose timing or amount is uncertain by virtue of the fact that an invoice has not yet been received. The uncertainty of the accrued expense is not significant enough to qualify it as a provision. An example of an accrued expense is a pending obligation to pay for goods or services received from a counterpart, while cash is to be paid out in a latter
accounting period when the amount is deducted from accrued expenses.
For monthly reporting you have to show this expense, for the month its belongs, so in this case I would suggest use SAP standard functionality Accrual/Deferral and book this entry at month end by T.Code: FBS1, e.g. reporting month is May, then post this entry posting date May 31,2014 and give reversal date 1st of June 2014.
FBS1: Posting Date: 31-04-2014
Debit Expense                      XXXX
            Credit Accrued Expenses (B/S GL)              XXXX
Reversal 1st day of June: 01.06.2014
Execute T.Code F.81 1st day of June, you can schedule it also, then system will read the reversal date form original accrual document and post the following entry.
Debit Accrued Expenses (B/S GL)    XXXX
            Credit Expense                    XXXX
Later on you when received actual invoice, let’s say on 25th of June you received the vendor invoice:
T.Code FB60
Debit Expense XXX
                        Credit Actual Vendor
Then make payment by F.53 or F110, in this way you will have track of your expenses, AP and FM reporting, and I hope there shouldn't be any problem at all, as long as it won't exceed your budget.
Kind Regards
Javed

Unable to clear the account.

Dear All,
When I try clear from account 2370500 items, which will generate exchange rate differences, I get the following message: Ex.rate diff.accts are incomplete for account 0002370500 currency EUR. The other items can be cleared. Please complete the account 2570900.
The GL account 2370500 is an Accrued expenses / Other, short-term, external account.
I've already maintained the OBA1 settings for this account, But still I'm getting the error while clearing the account.
Please help me out in this issue.
Thanks a lot in advance!!

Thanks a lot for the response!!
OB09 is nothing but the previous setting of OBA1, My GL account is already there. But there is no currency maintained there and I think its not necessary to maintain the currency type to fix the problem. I dont think so the problem will be fixed if i'll set the currency type there.
Any other settings I need to maintain to clear the accounts besides OB09 and OBA1??
Please do write back to me.
Thanks a lot in advance!!

Orcale Vs. SAP "Clear GL open items" ?

Dears,
I am new to oracle, previously I was using SAP, and I wonder if oracle have the same capability to view the GL entries as open items (non cleared entries), and if there is any possibility to clear B/S GL accounts. “such feature in SAP is called by transaction F.03”
To illustrate my question, if we have an accrued expense in the accrual GL account and it have been paid out, a clearing entry should be posted to indicate that the balance is no loner outstanding. So when we select to view the accrual GL account GL entries, it shows the entries that present the outstanding balance only “open items”, without showing the whole Dr and Cr transactions with the same balance.
Such feature will help in account reconciliation and account balance review
Thanks for your help,

Hi,
I am also facing the same problem. Please help to resolve.
Thanks,

Accruals

Hi,
Would you please describ what is the accrual process?
I have one example. Like I m paying rent for the year in advance for 12 month on 1st Jan. How I will post entry in sap?what will be my month end process for the same?
like on 1st jan:
F-53 paying to vendor 12000
now what entry we will post as accrual entry? which t code we will use? how much amount we will post/reverse?
Kindly provide details for paying usd 12000 for whole year and then how we will do in sap?
Regards,
Pankaj

Hi.Income and expenditure is recognized when it is earned or incurred and not when cash is received or paid.It's accrual basic.
In your case Accrued expense(Expense incurred but not invoiced/paid). and it's better to calculate by average amount and allocate it till months( 3000/3=1000). So every month you'd to do next posting
(Periodic posting) 31.01 Dr P&L a/c 1000
Cr Phone a/c
On 01.02 you'd to reverse one.
Sometimes you can make Opening and Closing posting
Opening posting Dr Clearing a/c 3000
Cr Phone a/c 3000 and then periodic posting.
There are two functionality of accruals. One as described BCSJVS ChnadraBS. And another(more flexible) create Accruals object ACACTREE01, and run periodic posting ACACACT. Also using ACACTREE01 you can simulate values.

Accruals/Deferrals

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

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.

Invoice Unplanned Costs

Is there a way to associated a different Vendor when using unplanned delivery costs? My problem is we went to moving average price and in order to value my inventory correctly I need to include freight charges. I know that I can put it in the conditions on the PO but for one I do not know the exact costs and two I may have up to four Vendors involved with this since alot of our materials comes from overseas and they change frequently.
Is there a way to enter the freight at the time of invoicing with a different Vendor other than the material and reference the material or the PO?

Hi Gregory,
Not directly addressing your question - but a suggestion as to how you may be able to account for the different expenses incurred in moving the material from overseas locations to your offices.
Have you thought about configuring multiple 'Third-Party Freight' Conditions. This way you would be able to accrue expenses individually for the different legs involved in transporting the material as shown below - all you would need to know at the time of creating the PO is the number of parties involved in the process.
==================================================
Cond.Typ / Leg / Vendor
==================================================
ZFR1 / Sea Freight - Local Currency / Vendor 1
ZFR2 / Sea Freight - Alternative Currency / Vendor 1
ZFR3 / Port to Sorting Yard / Vendor 2
ZFR4 / Sorting Yard to Branch Office / Vendor 3
==================================================
Planning the costs this way ensures your Material valuation accurately reflects the actual costs involved in procuring the materials. Depending on the timing of the Invoice from the Vendor, you may also be able to hold of on performing the GR and update an values in the PO to correctly reflect the values in the Invoice from the Vendor.
Hope this helps.
Ravelle

GL to Vendor

We have recently shifted to SAP from oracle..One of our Vendor's Balance was wronly uploaded in SAP Against Accrued Expenses. Now i want to Shift that amount from Accrued Expenses to Vendor's Account & also want to Clear that vendor payment. Please tell me which function (T-Code) should i use for this entry.?
Awais Nasir
Cherat Cement Company Limited
Edited by: AWAIS CCCL on Jan 19, 2010 6:50 AM

Hi,
If the problem with uploaded balances then you reverse the same entry with a proper reson code.
Then post another entry with the correct amount with proper approval from the Client/Managment
Step1: Reverse the Accred Expenses Entry.
Step2: Post antoher entry to Vendor A/c
(or)
Insted of doing these two postings you can post only one adjustment entry with a single document if you have adjustment entries document type and document no range. Post one line to reverse the Accred Expenses and same will be posted to Vendor.
Once created line item in the Vendor A/c then you can clear this open item by paying the amount.
For Reversal Entry: FB08. For adjustment Entry: you can use F-02 (Change Document type for Adjustment Entries if you have)
Payment to Vendor to clear open item. F-53 (Outgoing Payment)
Thanks
Chandra

Vendorwise accrual report

Hi Friends
Can any one suggest me how it is possible to take month end accrual expenses reports VENDORwise ?
Eg:If we acrrue expenses 0f say £100 against vendor A (against different documents say £20£40£30) and £200 against vendor B and so on.
End of the month we need report on accrued expenses vendorwise.
As I understand accrual entry is dr expense a/c
cr accrued expns a/c
from the entries above we can't take accrued expns report vendorwise.
Is there any way to do it?
pl suggest

Hi,
write your own report:
to find vendor accruals use an own document type
A.

Profit centre in Document Splitting

Hi!
I am facing problem with profit centre in document splitting.
My client is posting document with two Balanse sheet accounts like Accrued Expenses Dr to Bank A/C, where both are Balance sheet accounts and there is no profit centre in those line items, system is giving error "Balancing field profit center in line item 001 is not filled"
regs,
ramesh
Moderator: Please, search SDN

Dear ramesh,
Simply put profit center for the bank or accrued expense at the time of entry.
Because there is no line item from where the Profit center can be derived right.
It is not a document split problem.
Edited by: lolu jo on Feb 18, 2011 4:13 PM

Clear open GL items ??

Dears,
I am new to oracle, previously I was using SAP, and I wonder if oracle have the same capability to view the GL entries as open items (non cleared entries), and if there is any possibility to clear B/S GL accounts. “such feature in SAP is called by transaction F.03”
To illustrate my question, if we have an accrued expense in the accrual GL account and it have been paid out, a clearing entry should be posted to indicate that the balance is no loner outstanding. So when we select to view the accrual GL account GL entries, it shows the entries that present the outstanding balance only “open items”, without showing the whole Dr and Cr transactions with the same balance.
Such feature will help in account reconciliation and account balance review
if iam posting to a wrong thread, thanks to tell me the correct one !!
Thanks for your help,

Hi
As a Standard feature the Open Items for an account after knocking off matching debit and credit transaction in oracle GL is not available. It is available only in subledger module like AP, AR. In GL it will always show all the transactions including matching debit and credit transactions.
In your example, you can get Accrual Reconciliation Report and uninvoiced receipts report which will show only the open accruals.
The only way to make your requirement in GL is to copy the GL_BALANCES table Information to another table and write a custom code to eliminate those matching debit and credit transactions which is not supported by Oracle
Hope this helps
Regards
Sivakumar

Accruals for Purchase Orders

Hello All,
I have a couple of questions about accruals, our Apps. version is 11.0.2, we have set our Accrue Inventory Items set to On Reciept. We would like to set the Accrue Expense Items to On Receipt also. I have done some research on the issue, but I still have some questions?
1) Currently, in our system the Accrue Expense Item is set to On Receipt. An accrual
expense account has been assigned. To date, to start accruing on our PO's, is this the
only step left is to run the GL Import?
2) Since this will be the first time we will be accruing on our PO's, how will this affect
our system?
2) I also read, that it is not a good idea to have both options set to On Receipt? Why? I
have not been able to find much info. on the subject and we must set them up this way.
3) I have also read that there is no intergration between PO and PA, therefore the accruals
can not be recognized in PA. Does anyone have any suggestions on how to get the info.
into PA?
Any infornmation that you could provide would be great.
Thank you,
Karen

Hi,
In SAP, there is a functionality to take care of the planned and unplanned delivery costs.
Planned costs:
If freight and customs duty costs on purchase can be planned or known ahead of time, these are entered as planned costs on the Purchase Order.
In Automatic Account Determination for movements of inventory (OBYC), there are transaction keys FR2(Freight provisions) and FR4(Custom provisions) are available. If a condition type,in pricing is marked as provision-relevant, then the accounts maintanined under transaction keys FR2 and FR4 are used to generate provisional entries.
In addition to freight and customs duty, there may be additional types of delivery costs on a purchase order, you can create provision for other delivery costs using RUE transaction key.
Unplanned Costs:
The transaction key UPF is supporting in to post unplanned delivery costs in purchasing.
I think that I have elaborately discussed, more than what you want. Trust it helps! If not, revert back.
Cheers!

Clearing Rebate GL account- Accrual & settlement

Hi,
Require your help for the clearing of Rebate Accrual account. We have the following set of entries:
Initially when you accrue rebates, the following entry is passed
Accrued Expense a/c Dr.
Accrued B/S a/c Cr.
Then when you actually pay to customer then the journal entry that is passed is:
Customer Cr.
Accrued Expense a/c Dr.
Accrued B/S a/c Dr.
Accrued Expense a/c Cr.
How the accrual B/S GL account isis cleared - at the time of settlement (how) or automatic clearing (how - what parameters). Please revert
Thanks
Amit

Hi
You can create automatic clearing setting for this GL account giving the unique parameters for the line items.
Regards,
Lakshmanan Krishnan

Accrual and differal cost ??

Hi PS Gurus
what is accrual and differal cost?
thanks in advance...

Go through this link:
http://help.sap.com/saphelp_glossary/en/35/26b849afab52b9e10000009b38f974/content.htm
Accrual is expense before a closing key date that represents an expense for any period after that key closing date.
Deferred is income before a closing key date that represents revenue for any period after that date.
It is basically saying that you are accruing expense for a period from a previous period or receiving income in a period that is deferred for the next period.
Please reward points if helpful.
Regards,
Venkat.

Accrued Expenses

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