Accrual /Deferral RERAALCN

[Former Member]

Hi Team,

Can you please help to know whether Accrual /deferral transaction can be run for contracts on daily basis instead of monthly for some of the contracts .

Do we require any additional sap notes to be implemented for the requirement , We have activated EA-FIN business function for the RE-FX implementation.

Thank you

Sri

[amarendar · Accepted solution]

Hi Srivani,

Please help with the accounting entries that you are expecting with this set up. Since you said on a daily basis, two entries for two consecutive days will do.

Accrual/Deferral engine facilitate distribution of rent revenue monthly in cases where posting frequency is more than 1 month for rent conditions.

Regards

Amar

[Former Member · Accepted solution]

Hi Amare,

Thank you for your reply.

For our client , we have some of the contracts with frequency daily , weekly. Current accrual/deferral run is setup to run monthly , we wanted to know whether  we have the possibility to run RERACCLN transaction daily or weekly for some of the contracts .

Currently we are checking the possibility , need to check on the accounting entries.

Can you please let me know if any additional configuration changes are needed.

Thank you

Srivani

[amarendar · Accepted solution]

Hi Srivani,

I do not want to disappoint you, but this is not possible.

From my previous reply you missed two points:

1. Accrual/Deferral is done to distribute the rent revenue monthly, so that revenue get spread evenly during the entire period of the contract. This is based on the accounting principle of Accrual.

2. If you check the daily accounting entry of accrual and club it for the month, you will realize that it has made your accounting books lengthy for nothing.

Principally it is not desirable to have this solution and that's why SAP standard does not support daily deferral.

Regards,

Amar

[Former Member · Accepted solution]

Hi Amare,

Appreciate your quick reply,

Can you please let me know if we have any SAP note that it is not recommended by SAP standard.

Regards

Sri

[amarendar · Accepted solution]

Hi Sri,

Go through this SAP note,  829676 - Consulting note: Accruals/deferrals in RE-FX. Under this read posting control section, it is suggested to keep monthly frequency.

Regards,

Amar