Welcome to the Purchase Order Accrual in S/4HANA - Part 2
If you haven't read the Part 1 of this topic, please find it in the below link:
Customizing the Purchase Order Accruals:
Before we use the functions in Purchase Order Accruals, we must make an extensive Customizing setting.
The following Customizing settings for working with the functions of purchase order accruals are mandatory:
- Set Application Component to be Customized to POAC
IMG→ Financial Accounting → General Ledger Accounting → Business Transactions → Accruals Management → Set Application Component to be Customize.
- Define Accrual Methods
IMG→ Financial Accounting → General Ledger Accounting → Business Transactions → Accruals Management → Accrual Calculation →Define Accrual Methods
- Define Accrual Item Types
IMG→ Financial Accounting → General Ledger Accounting → Business Transactions → Accruals Management → Basic Settings →Accrual Item Types → Define Accrual Item Types
- Define Accrual Item Types and Methods for MM Purchase Order Items
IMG → Financial Accounting → General Ledger Accounting → Business Transactions → Accruals Management → Applications of the Accrual Engine → Purchase Order Accruals→ Transfer of Purchase Orders from MM to the Accrual Engine→ Define Accrual Item Types and Methods for MM Purchase Order Items
- Assign Currency Types to Accrual Item Types
IMG→ Financial Accounting → General Ledger Accounting → Business Transactions → Accruals Management →Basic Setting → Assign Currency Types to Accrual Item Types
- Define Posting Schema
IMG→ Financial Accounting → General Ledger Accounting → Business Transactions → Accruals Management →Accrual Posting→ Define Posting Schema
- Assign Accrual Item Types to Journal Entry Types and Posting Schemas
IMG→ Financial Accounting → General Ledger Accounting → Business Transactions → Accruals Management →Accrual Posting→ Assign Accrual Item Types to Journal Entry Types and Posting Schemas
- Create and Edit Basic Account Determination
IMG →Financial Accounting → General Ledger Accounting → Business Transactions → Accruals Management → Applications of the Accrual Engine → Purchase Order Accruals→ Create and Edit Basic Account Determination
System Demonstration
Scenario: Based on the delivery schedule given in the purchase order item.
Note: All the planned deliveries with a delivery date in the past are assumed as received
- Purchase order created with delivery date as below:
- 01st Nov 2023 – 1 Qty
- 01st Dec 2023 – 2 Qty
- 01st Jan 2024 – 3 Qty
- 01st Feb 2024 – 2 Qty
- Display Purchase order Accrual Objects
- Actual and Planned cost = 800
- Simulation of Posting Run
- Post Accrual Amount (Periodic Postings) for the month of Nov 2023
- Display Accrual Object (Postings)
Accounting Entries
- Debit – Balance Sheet
- Credit – P & L Account
Central Finance: Calculate and Post Accruals for Replicated Purchase Orders
With release S/4HANA 1909 SP01 the Central Finance is Supported:
It is possible to calculate and post accrual for purchase orders that were replicated from a decentral system into the central finance system.
The CFIN scenarios consist of following steps:
- Replicate the purchase order from the sender system into the central finance system. In the central finance system, the replicated purchase order is stored as accounting view of Logistic Information (AVL), that is, it is not stored in the table of the normal MM purchase order.
- Also replicate the posting that occurred for the purchase order:
In order to enable the Accrual Engine to calculate the accruals correctly in the central finance system, the goods receipts, service entry sheet and supplier invoices also need to be replicated into the central finance system.
3. Transfer the replicated purchase orders into Accrual Engine
Perform this transfer using transaction POAC_MM2ACE_TRANSFER. The transfer does not happen automatically, even if indicator “Online Integration Active” was set in the customizing activity Define Accrual Item Types and Methods for MM Purchase Order Items
In the selection screen of this program, enter the logical system from which the purchase order was replicated.
4. Calculate, propose, review/Approval and post accruals like usual, that is, like for normal purchase orders that were created locally in the central finance system.
Central Finance Logical System in Accrual Engine:
In order to support the central finance scenario, the field local system was introduced as additional key field in the Accrual Engine.
- The logical system identifies the sender system from which the purchase order was replicated.
- The new key field logical system ensures that the same purchase order numbers can be used in the multiple sender system. In the central finance system these purchase orders can be distinguished because each of the POs has a different logical system.
The field logical system is only visible in the screen of the Accrual engine after
- At least one purchase order from a decentral system was replicated into the central finance system and this replicated purchase order was transferred into the accrual engine.
I hope you enjoyed this article. Please feel free to share your inputs/suggestion/corrections in the comments sections.
Let's keep learning together.
If you want to learn more about Purchase Order Accruals or Accruals Management in general, check out the SAP Help Portal under purchase order accrual.
Cheers
Regards
Ramesh Papanna
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