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Accrual Engine

SAP R/3 FINANCIALS

Accrual Engine

Date : February 2010

Author : Ramakrishna P

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TABLE OF CONTENTS

ACCRUAL ENGINE.........................................................................................................................................3

1. INTRODUCTION.................................................................................................................................3
1.1 ACCRUAL ENGINE DOCUMENTS:..........................................................................................................3
1.2 ACCRUAL TYPES......................................................................................................................................3
1.3 STRUCTURE.............................................................................................................................................4
2. ACCRUAL ENGINE CONFIGURATION STEPS......................................................................5
2.1 ASSIGN COMPANY CODE TO ACCRUAL ENGINE:................................................................................5
2.2 DEFINE ACCOUNTING PRINCIPLE:........................................................................................................5
2.3 ASSIGN ACCOUNTING PRINCIPLE TO COMPANY CODE......................................................................6
2.4 OPEN FISCAL YEAR FOR ACCRUAL ENGINE:.......................................................................................7
2.5 DEFINE ACCRUAL TYPE:........................................................................................................................7
2.6 ACCRUAL OBJECT:.................................................................................................................................8
2.7 DEFINE NUMBER RANGES FOR ACCRUAL OBJECT..............................................................................8
2.8 DEFINE ACCRUAL METHODS..................................................................................................................9
2.9 DEFINE STANDARD SETTING FOR ACCRUAL OBJECT.......................................................................10
2.10 DEFINE POSTING CONTROL............................................................................................................10
2.11 DEFINE NUMBER RANGES FOR PERIODIC POSTING RUNS...........................................................11
2.12 DEFINE NUMBER RANGES FOR ACCRUAL ENGINE DOCUMENTS..................................................12
2.13 DEFINE NUMBER RANGES FOR ASSIGNING ACC DOC TO ACE DOC........................................12
2.14 DEFINE SET OF RULE......................................................................................................................13
3. ACCRUAL DOCUMENTS POSTING THROUGH ACCRUAL ENGINE..........................15
3.1 CREATE ACCRUAL DOCUMENTS..........................................................................................................15
3.2 Start Periodic Accrual Run...........................................................................................................18

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Accrual Engine

1. Introduction
Tool that can be used to calculate and post accruals automatically.
The following application components are based on the functions of the Accrual Engine:
 Manual Accruals
 Provisions for Awards
 Lease Accounting Engine
The processes for calculating and posting accruals are made in the Accrual
Engine.
Method used to distribute expenditures, revenue, receivables and losses to the
correct period, based on the origin of these amounts.

For the lessor, the lease and the lease term determine the amounts to be accrued
You enter the data for your accruals in Manual Accruals. A distinction is made
here between the following data:

1. Master Data
The master data specifies an accrual transaction in more detail. For example, it
contains information about the type of accrual in question (rent, licenses, and so
on). The master data remains in the Manual Accruals component.
2. Posting Data
The posting data is required to calculate and post the accruals. This data is
transferred to the Accrual Engine. The processes for calculating and posting
accruals take place exclusively in the Accrual Engine.

1.1 Accrual Engine Documents:

The Accrual Engine calculates and posts the accruals. Accrual Engine documents
are generated when you post the accruals. If you execute an accrual run to post the
accruals, Accrual Engine documents are created and then transferred to accounting
automatically. The corresponding Accounting documents are then created in Accounting.

1.2 Accrual Types 

The accrual type controls the calculation and posting of accruals according to
different business views. It defines how the accruals are calculated and posted.
The accrual type sorts the accruals, for example, by:

A. Costs
B. Revenues
C. Receivables

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The accrual type to control which types of posting are performed for an accrual
item. You can assign all postings defined to an accrual type, or only individual postings:
1. Opening posting
The entire amount to be accrued is posted as a balance posting. Account
determination is normally set so that the entire amount to be accrued is posted to
an accruals account.
2. Periodic posting
The total amount to be accrued is split over the individual periods according to the
accrual method concerned. When you perform an accrual run in a period, the
accrual amount for that period is posted. Account determination is normally set so
that the periodic postings are from the accruals account to a profit and loss
account.
3. Closing posting
A closing posting only occurs when you deactivate an accrual object prematurely.
The amount that has not been accrued by the time of the premature deactivation
is posted as the deactivation amount.

1.3 Structure
The following accrual types exist:
1. Simple accrual type
With this accrual type, you define the view under which the accruals are made, and
which postings are performed.
2. Derived accrual type
This accrual type is derived from other accrual types, for example, as the total or
difference from other accrual types. You define a derived accrual type in
Customizing for Financial Accounting under Financial Accounting Global Settings ®
Accrual Engine ® Basic Settings ® Accrual Types ® Derived Accrual Types.
 

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2. Accrual Engine Configuration Steps

1.4 Assign Company code to Accrual Engine:

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Basic
SettingsAssign Company code to Accrual engine
Via Transaction Code SPRO

Input - Required Fields Field Value / Comments

Company Code 0102
Description Eimskip USA Accrual Engine
Productive Status Test status

Save

1.5 Define Accounting Principle:

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Basic
SettingsAccounting Principle  Define Accounting
Principle
Via Transaction Code SPRO

Input - Required Fields Field Value / Comments

Accounting Principle IFRS
Description IFRS Reporting Acctg Principle

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Save

1.6 Assign Accounting Principle to Company code

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Basic
SettingsAccounting Principle  Define Accounting
Principle  Assign Accounting Principle to Company code
Via Transaction Code SPRO

Input - Required Fields Field Value / Comments

Company Code 0102
Accounting Principle IFRS

Save

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1.7 Open Fiscal Year for Accrual engine:
Via Menus SPRO Financial AccountingGeneral Ledger Accounting
Business Transaction  Manual Accruals  Basic
Settings Open Fiscal Year for Accrual engine
Via Transaction Code SPRO

Input - Required Fields Field Value / Comments

Company Code 0102
Completed Fiscal Year 2006

Select new entries

1.8 Define Accrual Type:

Via Menus SPRO Financial AccountingGeneral Ledger Accounting
Business Transaction  Manual Accruals  Basic
Settings Technical settings  Define Accrual Type
Via Transaction Code SPRO

Input - Required Fields Field Value / Comments

Accrual Type COSTSV
Accrps ALL
Name COSTS VEV

Select new entries:

Save

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1.9 Accrual Object:

Via Menus SPRO Financial AccountingGeneral Ledger Accounting
Business Transaction  Manual Accruals  Basic
Settings Technical settings  Accrual Object  Accrual
Object Categories  Define Accrual Object Categories
Via Transaction Code SPRO

Input - Required Fields Field Value / Comments

Accrual Object RENT
Text Rent prepaid
Select new entries

Save

1.10 Define Number ranges for Accrual Object

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Basic
Settings Technical settings  Accrual Object  Define
Number ranges for Accrual object
Via Transaction Code ACAC_NUMOBJ

Input - Required Fields Field Value / Comments

No Range 01
From Number 100001
To Number 200000

Select new entries

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Save

1.11 Define Accrual methods

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Accrual
Calculation  Accrual Methods  Define Accrual Methods
Via Transaction Code SPRO

Input - Required Fields Field Value / Comments

Accrual method Period
Funct.Nmae ACE_DS_METHOD_LINEAR_P1
Text Period specific

Select New entries

Save

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1.12 Define Standard Setting for Accrual Object

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Accrual
Calculation  Define Standard setting for accrual object
Via Transaction Code SPRO

Input - Required Fields Field Value / Comments

Accounting Principle IFRS
Accrual type COSTV
Accrual method PERIOD

Select new entries

Save

1.13 Define Posting Control

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Accrual
Posting Define Posting Control
Via Transaction Code SPRO

Input - Required Fields Field Value / Comments

Company Code 0102
Accounting Principle IFRS
Freq. Per Posting Period
SM Summarize not activated
New entries

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Save

1.14 Define number ranges for Periodic Posting Runs

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Accrual
Posting Define number ranges for Periodic Posting Runs
Via Transaction Code ACEPS_RUNID

Input - Required Fields Field Value / Comments

Company code 0102
No Range 01 / 02
From Number 1/100001
To Number 100000/200000

Select New entries

Save

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1.15 Define number ranges for Accrual Engine Documents

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Accrual
Posting Define number ranges for Accrual Engine
Documents
Via Transaction Code ACEPS_ACEDOCNR

Input - Required Fields Field Value / Comments

Company code 0102
No Range 01 / 02
From Number 1/100001
To Number 100000/200000

Select New Entries

Save

1.16 Define number ranges for Assigning ACC Doc to ACE Doc

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Accrual
Posting Define number ranges for Assigning ACC Doc to
ACE Doc
Via Transaction Code ACEPS_AWREF

Input - Required Fields Field Value / Comments

Company code 0102
Fiscal Year 2007
No Range 01 / 02
From Number 1/15001
To Number 15000/15999

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Select new entries

Save

1.17 Define Set Of Rule

Via Menus SPRO Financial AccountingGeneral Ledger Accounting

Business Transaction  Manual Accruals  Accrual
Posting Account Determination Sample Account
Determination Define Se of Rule
Via Transaction Code ACEADET

Select Cost derivation rule

Input – Required Fields Field Value / Comments

Chart of accounts 1000
Accounting principle IFRS
Accounting Type COSTV
Accrual Object RENT
Document type SA
Target Account T100001
Start account T100000

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Save

Back

Select Rent derivation rule

Input – Required Fields Field Value / Comments

Chart of accounts 1000
Accounting principle IFRS
Accounting Type COSTV
Accrual Object RENT
Document type AB
Target Account T100002
Start account T100001

Save

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3. Accrual Documents Posting Through Accrual Engine

1.18 Create Accrual Documents

Posting Of Rent Transaction which is paid for a year (01/11/06 to 30/10/07)

Dr Prepaid Rent
Cr Bank

Booking of Rent expenditure every month from prepaid to Ins Exp

Dr Rent
Cr Prepaid Rent

Via Menus AccountingFinancial AccountingGeneral

LedgerPeriodic Processing  Manual Accruals 
Create Accrual Objects
Via Transaction Code ACACTREE01

Input - Required Fields Field Value / Comments

Company Code 0102
Accrual Object Category Rent
Start of Life 01-11-2006
End of Life 30-10-2007
Currency USD
Accounting Principle IFRS

Output - Results Comments

Document Number System generated document number based on the range
assigned to the Document Type

Field Description R/O/ User Action and Values Comments

Name C
Company Enter the relevant R 0102
Code company code
Accrual Enter the accrual object R Rent
Object category (insurance /
Category rent)
Start of Enter the start period for R 01-11-2006
life which the insurance is
paid
End of Enter the End of Life R 30-10-2007
Life
In Item Click on CREATE Button
Data Tab
Accrual Enter Accrual Type R COSTSV

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Type whether Costs / Revenues
Accountin Enter the accounting R IFRS
g Principle principle
Total Enter total amount paid R 12000
Amount for the period
Accrual Enter the accrual method R Period
Method (whether the amount
should be posted down
period wise / day wise)
In Acct
Assignmts
Profit Enter the respective profit R 1011101
centre centre which is to be
considered during
document posting
Cost Enter Cost Centers R 101001
Centers

Select Accounting Assignment

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Save

Click on “Check and simulate” – system gives error messages if any for information
purpose. And the following screen appears – Just click enter

The following screen appears with month wise break up as per the accrual method
selected (Period wise / Day wise)

Continue

Save

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1.19 Start Periodic Accrual Run

Via Menus AccountingFinancial AccountingGeneral

LedgerPeriodic Processing  Manual Accruals  Start
Periodic Run
Via Transaction Code ACACACT

Input - Required Fields Field Value / Comments

Company Code 0102
Accrual Object Category Rent
Key Date 30-10-2007

Field Description R/O/ User Action and Values Comments

Name C
Company Enter the relevant R 0102
Code company code
Accountin Enter the Accounting R IFRS
g Principle Principle
Accrual Enter the Accrual Type R COSTSV
Type
Accrual Enter the accrual object R RENT
Object category (insurance /
Category rent)
Key date Enter last date of the R 30-10-2007
of month for which the
Accruals accrual to be carried out
In Control
Data
Block
Execution Enter the execution Type R N- Normal
Type R – Repeat
E - Unscheduled

On the screen “Start Periodic Run”, enter the information in the fields as specified in the
table below:

The same can be executed in “Test Run” for checking purpose

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On the screen “Start Periodic Run”, enter the information in the fields as specified in the
table below:

The same can be executed in “Test Run” for checking purpose

Execute

Back

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Deselect Test run

Execute

Select REF.DOC No

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Select document number it displays the posted document list

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