Accurals / Manual Accurals

Hi,
Please explain  me what is Accurals.. and Manual Accural. about the functionality and how to apply this  in SAP with an example.
Thnx.

Hi,
The term "Accrual" is common to both incomes and expenses.
Meaning of Accrual:
I. In case of expenses:
Rightto pay the expenses but not yet paid.
Salary is due on last day of each month. But as per the company policy, the salary amount will be paid on 3rd day next month. Therefore the company has (right) to pay the salary but not yet paid till 3rd of next month. So the salary is due for these 3 days.
Journal Entry when salary is due ( Last day of each month)
Salary A/c Dr.
    To Outstanding Salary A/c
Journal Entry when salary is paid:
Outstanding Salary A/c Dr.
    To Cash/Bank A/c
Transaction Code: FBS1
II. In case of Incomes:
Accrual means right to recieve but not yet received.
Rent / Interest on Investment is due on last day of each month.
But we have received the same on 4th of next month.
Therefore the company has a right to receive that income on the last day of each month but actually to be received on 4th of next month. Income is accrued on last day of each month but actually is to be recieved on 4th of next month.
Journal Entry when income is accrued:
Rent/Interest Receivable (Accrued)  A/c Dr
    To Rent Received / Interest Received A/c
Journal Entry when income is recieved:
Cash/Bank A/c Dr
     To Rent/Interest Receivable (Accrued)  A/c
Hope this will clear.
Regards,
Kannusamy S

Similar Messages

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    Hi Praveena,
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    Hi,
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    Thx . in advance.
    regards,
    Rajendra D. Sawant.

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  • Rebate account accurals

    hi,
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    Hi
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  • Accurals

    Hi,
    Please explain the Accurals and its uses?
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    Hi,
    Following write up is going to help you.
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    Definition
    The accrual type controls the calculation and posting of accruals according to different business views. It defines how the accruals are calculated and posted.
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    Regards,
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    Please grant me points if found useful

  • Account key and Accurals in Domestic Pricing Procedure

    Dear all,
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    Please suggest ur valuable inputs on This.
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    As Suggested by you similar to Frieght can we meet the Following below requirements
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  • Posting accurals into FI

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    Hi
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  • DIFFERNCE BETWEEN ACCOUNT KEY & ACCURALS IN MM PRICING

    Hello,
    Please explain the difference between Account key & accruals in MM pricing procedure. In which situation account key will be used & accruals will be used & what is the impact.
    Thanks & regards
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    Edited by: Csaba Szommer on Jun 22, 2011 8:32 AM

    As Suggested by you similar to Frieght can we meet the Following below requirements
    a) Does can we have an account key and accrual key for Discounts Which can be capture on MIRO? Does it add on material Cost ?
    b) Does can we have an account key and accrual key for Packing and Farwarding which can be capture in MIRO ? Does it add on material Cost ?
    c) Does can we have an account key and accrual key for Octroi ? Which can be capture on MIRO? Does it add on material Cost ?
    Waiting for your Valuavle Suggestion.
    Yes u can have the accounting key and accurak key for all those conditions in which u have marked the accurak key in condition ( M/06).
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  • Purchase Order Accounting Accurals

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