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Author's profile photo Ratul Chakraborty2

Accrual Engine in S4 HANA 1909: Manual Accrual & how it is processed periodically – Part 2

Welcome to the accrual engine DEMO. If you haven’t read the Part 1 of this topic, please find it in the below link:

https://blogs.sap.com/2020/11/24/accrual-engine-in-s4-hana-1909-manual-accrual-how-it-is-processed-periodically-part-1/

The whole accrual process can be divided into number of steps. In the DEMO we will cover the following scenarios. Please note the scenarios minutely, that will help you understand the content better.

1 Manual Accrual Demo:

 

1.1 Scenario 1

Accrual with FULL Posting: Accrual Item type COSTS

  • With transaction types IP – Initial Posting & PP – Periodic Posting
  • With Workflow Review and Approval
  • Upload EXCEL with Total Amount
  • With LINEAR accrual calculation method

 

1.2 Scenario 2

Accrual with DELTA Posting: Accrual Item type COSTS_UPL

  • With transaction type PP
  • With Workflow Review and Approval
  • Upload EXCEL with Periodic Amount
  • With UPLD_AMT accrual method. Uploading accrual amounts from EXCEL

 

I will keep on explaining both the scenarios for each and every step of accrual process. All transactions are available in the following node of the SAP Easy Access menu.

 

1.3 Steps to follow

 

1.3.1 Step 1: Create Accrual Object

Templates can be downloaded from the transaction itself.

 

Template for Scenario 1:

Once uploaded, the accrual object will look like below:

 

Template for Scenario 2:

 

For UPLD_AMNT, the amounts are provided in the upload template

If required, you can enter cost objects as well in your Accrual Object.

 

 

1.3.2 Step 2: Propose Periodic Amounts

 

Month 1

Here it is June. So, last day of Period should be 30.06.2020

Month 2

Here it is July. So, last day of Period should be 31.07.2020

 

1.3.3 Step 3: Change Time Interval for Review and Approval

In this DEMO, we are posting accruals for the month June & July. So, the interval has been set for June & July only.

 

 

1.3.4 Step 4: Review Periodic Accruals for Cost Object

 

Month 1

 

Here in this step, a reviewer can change the Accrual Amount. We will change the accrual amount for both the accrual objects.

 

Month 2

We have already changed the accrual amount in Month 1. Here we won’t change again.

 

1.3.5 Step 5: Approve Periodic Accruals

 

Month 1

 

The accrual amount can be changed in this step as well. But, we will not change it anymore as we have already done in the previous step.

Month 2

 

1.3.6 Step 6: Periodic Posting Run

 

Month 1

 

Month 2

Why 2 entries for COSTS?

For COSTS we have configured full posting. The 1st item reverses the posting happened in first month and 2nd item posts the full accrual amount for current month. Let’s have a look in more details in Journal entry section.

 

1.3.6.1 Before Periodic Posting:

Scenario 1:

Initial Posting already happened in Create Accrual Object step as IP is configured for Accrual Item Type COSTS.

Journal Entry:

Scenario 2:

No IP as the Accrual Item type COSTS_UPL is configured only with PP – Periodic Posting

 

1.3.6.2 After Periodic Posting

 

Month 1:

Accrual Amounts were changed in the review step:

 

Scenario 1:

1428.57 SEK changed to 1300 SEK

Scenario 2:

10K SEK changed to 9000 SEK

 

Journal Entry:

Scenario 1 & 2 has been merged into a single journal.

 

Month 2:

Scenario 1:

Scenario 2:

 

Journal Entry:

Scenario 1 and Scenario 2 have been merged into a single journal as per standard SAP functionality.

Item 1 & 2 :

Entry for DELTA posting for Accrual Item type COSTS_UPL (Refer to Scenario 2)

Item 3 & 4 :

Entry for FULL posting in month 2 (July ) for Accrual Item type COSTS (Refer to Scenario 1)

Item 5 & 6 :

Entry for reversal posting of Month 1 in month 2 ( July ) for Accrual Item type COSTS (Refer to Scenario 1)

 

 

2 Batch jobs for Periodic Posting

 

There are 4 steps to be completed as part of Periodic Posting:

  • Propose Accrual Amount – Transaction ACEPROPOSALRUN
  • Review of Accruals – Manual Step
  • Approval of Accruals – Manual Step
  • Post Accruals – Transaction ACEPOSTINGRUN

2 jobs can be scheduled to automate Step 1 & Step 4 and the 2nd Job must run after the approval window closes

 

3 Fiori Apps

  • The application Manual Accruals itself is not available as Fiori app
  • With release S/4HANA 1909 there is the Fiori app Analyze Accrual Postings available
  • This is a reporting app that reports posting that were performed by the Accrual Engine.
  • It shows data not only for Manual Accruals, but also from other applications that are based on the Accrual Engine, for example Purchase Order Accruals.
  • For reporting of posted line items, also the app Display Line Items in General Ledger can be used.

 

I hope you find my blog useful. Please share your comments/suggestions/corrections in the comments below. Let’s learn together.

Keep in touch in http://linkedin.com/in/theratulchakraborty

 

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      34 Comments
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      Author's profile photo Muhammad Hasan Mufid
      Muhammad Hasan Mufid

      Well done Ratul

       

      Regards,

      Muhammad Hasan Mufid

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      Cheers Muhammad

      Author's profile photo VENTES ALTEN
      VENTES ALTEN

      Thanks Ratul !

      Quick question : do you know if the Excel upload functionality is available on ECC system ?

      Thank you,

      François

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      I dont think it is available in ECC, xl upload functionality was introduced in S4 HANA 1809/ 1909

      Cheers

      Author's profile photo VENTES ALTEN
      VENTES ALTEN

      Thanks for quick feedback !

      Author's profile photo Rakesh Gujarati
      Rakesh Gujarati

      Hi Ratul,

       

      Thank you for wonderful blog. Very well  explained. I have setup the system as per your blog and tested it till FACRAAPPRVGL - Approve Periodic Accruals – G/L Accountants step. But when I try to execute ACEPOSTINGRUN - Periodic Posting Run, I am getting the below message.

      Could you please help!

       

      Regards,

       

      Rakesh

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      Hi,

      There could be several reasons. It is hard to guess. Please check the details in Accrual display. Was it really reviewed or approved? Was periodic posting active for this accrual line item type? Was the accrual amount above the threshold limit?

      I have listed some of them. Im sure there are other reasons as well for this message.

      Cheers

      Ratul

      Author's profile photo Sreekanth Bezawada
      Sreekanth Bezawada

      Hi Ratul,

      Thank you for your reply.

      I am now able to post with Periodic Posting Run after the customizing changes.

       

      Rakesh Gujarati : In the customizing step ''Assign Accrual Item Types to Journal Entry Types and Posting Schemas'', I have added Acct TType ''PP'', posting schema ''SAP_ACE_PP'' for each Accrual Item type. Please refer below screen shot.

      Hope this will also work for you.

       

       

      Thanks,

      Sreekanth.

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      Fantastic Sreekanth.

       

      Cheers

      Author's profile photo Sreekanth Bezawada
      Sreekanth Bezawada

      Hi Ratul Chakraborty2 ,

       

      I realized PP postings are happening, but for IP no postings have happened.

      Is there any separate customizing step to get the IP document posted when we do the initial upload for total amount?

      Thanks,

      Sreekanth.

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      No Sreekanth, at least Im not aware of such configuration 🙂

      Author's profile photo Rakesh Gujarati
      Rakesh Gujarati

      Hi Sreekanth,

      Ratul Chakraborty2 and  Sreekanth Bezawada Thank you for the inputs. I have mapped the posting schemas for Accr TType PP and was able to run the ACEPOSTINGRUN - Periodic Posting Run. But when I am running it for second month, the first month accrual is not getting reversed.

      ACEPOSTINGRUN

      ACEPOSTINGRUN

      I have tried mapping Accr TType RP and RL after implementing the OSS note 2815555 - Accrual engine: Release posting not working, But it is not working as there may be something i am missing in step ''Assign Accrual Item Types to Journal Entry Types and Posting Schemas''.

       

      Posting%20Schema%20item%20-%20RP

       

      Posting%20schema%20assignment

      Posting schema assignment

      Could you please share the details of Posting Schema and Accr TType assignment for  RP and RL.

       

      Regards,

       

      Rakesh

       

      Posting Schema item - RP

      Author's profile photo Sreekanth Bezawada
      Sreekanth Bezawada

      Hi Rakesh Gujarati ,

      I also have the same issue, when doing periodic posting for the 2nd month, the first month accrual is not getting reversed.

      In addition to this, there is also no IP posting for first month with initial upload for total amount.

      I am still investigating this and will post here if I find the solution.

      In the mean time if you find the solution, kindly share to us.

      Thanks,

      Sreekanth.

       

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      Please check if you have configured Complete Posting / Delta Posting. I can see from the screen shot that you have configured Delta posting. If you are already posting Delta, then there is nothing to reverse in the subsequent month, right?

       

      Cheers

      Ratul

      Author's profile photo Rakesh Gujarati
      Rakesh Gujarati

      Hi Sreekanth Bezawada,

      Try activating Post Details check box for  IP Ttype, it helps  us to post the delta posting. As I can see that is not activated in your case.

       

      Regards,

      Rakesh.

      9739465231

      Author's profile photo Sreekanth Bezawada
      Sreekanth Bezawada

      Hi Rakesh Gujarati : I have already tried activating Post Deltas check box for for IP type and no postings have happened for IP

      Thanks,

      Sreekanth

      Author's profile photo Rakesh Gujarati
      Rakesh Gujarati

      Hi Sreekanth Bezawada

      Initially I had the same issue, IP was not getting posted, as above setup (blog) shows not to activate Post Details. But, after activating the check box the IP document got posted. Please refer the help notes  for that particular field.

      below are IP document details for your reference.

      IP%20type%20Doc

       

      IP%20TType%20setup

       

      Regards,

      Rakesh

      9739465231

      IP TType setup

      IP type Doc

      Author's profile photo Sreekanth Bezawada
      Sreekanth Bezawada

      Hello Rakesh Gujarati , Hello Ratul Chakraborty2 :

      After implementing SAP note 2872954 - Accrual Engine: Time-dependency issue with methods 'First Period' and 'Last Period', I am now able to post IP document.

      Rakesh Gujarati : you need to remove the check boxes ''Post Deltas'' for transaction type IP and PP to reverse the first month accrual in the second month

      Thanks,

      Sreekanth.

       

      Author's profile photo Sreekanth Bezawada
      Sreekanth Bezawada

      Hi Rakesh,

      I also have the same issue. Did you find any solution? Kindly let me know.

      Hi Ratul Chakraborty2 : Thank you for your detailed presentation. my authorization/roles seems to be ok with the authorization object F_ACES_PST. However in transaction ACEPOSTINGRUN i get the same message '' No result found. Change search criteria''

       

      Could you kindly advise?

       

      Thanks,

      Sreekanth.

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      Please look at my reply above

      Author's profile photo Ayesha Ahmed
      Ayesha Ahmed

      Hi Ratul, thanks for helping the community. The step by step accrual process you explained is very clear. Does the accrual engine is a separate license or need to activate the accrual engine config.

      Thanks,

      Ayesha.

       

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      Hi,

      No additional licensing is required. You only have to do the config to activate it.

      Cheers

      Ratul

      Author's profile photo Eivind Boe
      Eivind Boe

      Hi Ratul, thanks for helping the community!

      We're currently working on setting up an solution for handling prepaid invoices for a customer. First, we looked into the POAC, but we’were not able to reduce the amount on the invoices. The deferral postings should reduce the periodic amount, from the total of the invoice. Is the total amount in scenario one referring to a total amount on a invoice or a purchase order?

      Do you know if SAP are looking into how they can handle deferrals with POAC?

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      Hi Eivind,

      Thank you. To be honest, I do not have any answer for you now. But let me get back to you. Please ping me in Linkedin, will share a document.

       

      Cheers

      Author's profile photo . Bao .
      . Bao .

      !!!!!!!!!

      This is solved by a new accrual method CL_ACE_CFG_METHOD_FIRSTPERIOD

      !!!!!!!!!

       

      Dear Ratul,

      Needing your help that entering the amount for accrual object is not possible when mannully creating, see the following screenshot

      Note

      1, the accrual method:

      CL_ACE_CFG_METHOD_LINEAR_P1    ACE: Linear Distribution, Period-Specific

       

      2, Accrual item type

      Upload of Periodic Accrual Amount Allowed is not ticked

       

       

      and still I can upload, see the result as below

       

      Appreciate your help

       

       

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      Hi,

       

      Please check your accrual method. Is it UPLD_AMT?

      Author's profile photo . Bao .
      . Bao .

      Dear Ratul,

       

      !!!!!!!!!

      This is solved by a new accrual method CL_ACE_CFG_METHOD_FIRSTPERIOD

      !!!!!!!!!

       

      Appreciate your information and help

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      Awesome, thanks 🙂

      Author's profile photo Sreekanth Bezawada
      Sreekanth Bezawada

      Hello Ratul,

      Currently the periodic accruals are getting posted as credit amounts. Is there a possibility to have the debit postings.

      If the business purpose is to have monthly cost accruals, then these should be debit postings

       

       

      Thanks,

      Sreekanth

      Author's profile photo Ratul Chakraborty2
      Ratul Chakraborty2
      Blog Post Author

      Hi Sreekanth,

       

      You can try passing -ve amount in the accrual amount column. Let me know if that works.

       

      Cheers

      Ratul

      Author's profile photo Sreekanth Bezawada
      Sreekanth Bezawada

      Hello Ratul,

       

      I am getting 2 different FI documents for Scenario 1 and Scenario 2.

      Can you kindly advise if there is any setting have one accounting document for periodic posting run for multiple accrual objects?

      Document

      Thanks,

      Sreekanth

      Author's profile photo Sreekanth Bezawada
      Sreekanth Bezawada

       

      This issue is solved after implementing the SAP note  ''2884355 - Accrual posting run posts too many journal entries instead of aggregating''

      Author's profile photo Ramamoorthy Balakrishnan
      Ramamoorthy Balakrishnan

      HI Ratul,

      Very Informative.

       

      R Balakrishnan.

      Author's profile photo Ramamoorthy Balakrishnan
      Ramamoorthy Balakrishnan

      HI Ratul,

      Very Informative.

       

      R Balakrishnan