RE-FX Deferral Procedure

[Former Member]

Dear experts,

I have not clear enough the process of the Deferrals in RE-FX context. My client has some contracts that are posting quarterly, and wants to start using deferral functionality but not sure about it.

As far as I know, he has to run RERAPP t-code for those contracts in advance (lets say the first week of December 2016 for the first quarter of 2017), so that the rent corresponding to January, February and March 2017 is posted. Then, at some moment of January 2017 (at the month end??), he has to run RERAALCN t-code to defer for January, the same for February 2017 and the same for March 2017. Is it right? Or am I wrong with the steps and/or the time to run them?

What I mean, is what would be the right moment of the month to perform each activity to reach out the correct results.

I am looking for a user manual related to this process, but I have not found anything, so if you know where can I find it, I would be very grateful.

Thanks in advance for your help on this.

Best regards,

Esther.

[Former Member]

HI Esther,

my suggestion is to run the accrual program before the month end closing and not the real month end..like 30 or 31st of the month as you may still process contract on this day where 1 day may still part of your income for the month..just to be safe..process it before month end closing

regards,

migs

[sudhirkumar_tomar]

Hi Esther,

You please read following consulting note shared by SAP

829676 - Consulting note: Accruals/deferrals in RE-FX

1062550 - RERAALCN: Enhancement for accrual/deferral logic

It contains every steps to configure Accrual/deferral with example.

You also can get the detailed information about this process in SCN.

https://scn.sap.com/thread/2053616

Best Regards

Sudhir

[Former Member]

Dear Sudhir,

thanks for your reply. I've already checked those two notes, and I have all the general overview of the process. However, what I was asking for, is the details of the best moment to run the process, because customer is asking for concrete dates.

Thanks and regards,

Esther.

[sudhirkumar_tomar]

Hi Esther,

Accruals/deferrals in RE-FX is used for period-end closings, it is also mentioned in note 829676 that Accruals/deferrals as part of the period-end closing but it also depend on business financial closing date. During run of Accrual/deferral it automatically take the posting date as the last date of the month depend on the key date - RERAALCN (this is in standard).

Best Regards

Sudhir

[narnei]

Dear Esther,

Whatever the method you are following is fine to run the revenue recognition.

But there is one more way to follow the revenue recognition – straight-line method(SLM).

For that

• REFX system need to implement SAP Note 907742, this note will skip one step of Accrual/Deferral.
• No need to run Accrual/Deferral (RERAALCN) saparately, as the system will calculate the SLM amount in Periodic posting (RERAPP) itself.

Pls refer sap note 907742 for more information.

Regards,

Rao

[Former Member]

Dear Rao,

thanks for taking time to read and respond to my question. I have checked note 907742, however, it is not what I am looking for.

I was just asking for a document or note in which is explained the best moment to run Deferrals (RERAALCN) after periodic contract posting, for a contract whose rent is paid in a quarterly basis in advance.

Best regards,

Esther.

[Former Member]

Hi Esther,

Best moment to run deferrals is last date of each month.

Best Regards

Shantanu

[Former Member]

Dear Shantanu,

you mean during the month end closing process, after having completed all the other tasks (although this means to be 3-01, 3-02)? Or do you mean the real last day of the month (31-01, 28-02, ec)?

Thanks for clarifying.

Best regards,

Esther