SAP TRM - Accrual Difference Procedure

[Former Member]

Dear All,

We need to set up the  Accrual Difference Procedure for Money Market & Bonds, when i go through the config i found the below update types kindly advise which set i can consider for MM & which set for Bonds.

AD1004 - Accruals - Difference Procedure: Revenue

AD1005 - Accruals - Difference Procedure: Expenses

AD1014 - Deferrals - Difference Procedure: Revenue

AD1015 - Deferrals - Difference Procedure: Expenses

I am unable to figure out what is the difference between  AD1004 & AD1014 , AD1005  & AD1015  both has the same description, what is the difference between these, Kindly provide me some guidance on the same.

Regards,

Reenu John

[dfg1988 · Accepted solution]

Hi Reenu,

First, you have to understand the difference between Accrual and Deferral;

Accrual is the expense or in the most the time interest that has not been paid, and you are recognized when earned regardless of when cash is paid out.

In that case, the system uses the Update type AD1004 and AD1005

Deferral is the same concept except that this case the expense has been paid already.

The system uses the update type AD104 and AD1015 here.

The follow links might be useful

Theory:

Accruals - Loans Management (FS CML) - SAP Library

Deferrals - Loans Management (FS CML) - SAP Library

Accrual/Deferral of Expenses and Revenues - SAP Library

Best

[former_member198450]

Dear Reenu,

Please refer SAP note: 912679, might be helpful.

Regards,

Jain

[Former Member]

Dear All,

Thank You So Much for your Inputs:)

Regards,

Reenu John

[rohitbali]

HI Renu,

you can use any set of update type And keep both bond nd mm update type same. As you must be aware of account assignment reference, differentiate ur bond nd mm gls on basis of AAR.

REgards,

Rohit