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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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