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Delta accurals & Delta Settlement

What is delta accurals & delta settlement? Can anyone explain briefly.

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  • Best Answer
    Posted on Dec 28, 2020 at 04:47 PM

    Delta Accruals:

    When a Rebate agreement (Condition Contract) is created, accruals are determined using REA1 condition type in the billing document. And accrual entries are posted when the accounting document is created for a billing document.

    In a scenario where a Rebate agreement is created with a past date, all the billing documents already created before the rebate agreement was created does not have the accrual entries. In ECC, we run VBOF transaction to update the accruals for the retroactive rebate agreements. In S4 HANA, the similar functionality is available which is know as Delta Accruals. In ECC, a new accounting document is created for each billing document with the adjustment amount. In S4 HANA, one accounting document (with reference to Settlement Credit Memo) is created for the entire Condition contract. For the visibility into finance, the delta accrual run must be scheduled in the settlement calendar to run daily or weekly or as per the requirement.

    Delta Settlement:

    This type of settlement is run with reference to a final settlement. Even after the final settlement, if there are any further adjustments to the business volume or other values, Delta Settlement run will re-run the rebate calculations and adjustment postings are made accordingly.

    Hope this explanation helps..!!

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  • Posted on 2 days ago

    Just want to explain clearly the definition by giving the definition from SAP for both Settlement Date type + correct what Anjikumar Pasumarthy said.

    Definition:

    Delta Settlement

    Subsequent corrections or late postings can alter the business volume base of a time interval for which a final settlement has already been performed. To settle these subsequent changes and to correct the final settlement for the time interval, you can use a delta settlement. You can also repeat delta settlements; previous delta settlements are then also taken into consideration. You can define the delta settlement in the contracts' settlement calendar ahead of time. One or more delta settlements are permitted. For example, you can perform a final settlement on December 31 and then a delta settlement on January 15 and January 31 of the following year.

    Delta Accruals Settlement

    By using delta accruals settlements, you can create accruals in an accumulated form. Usually, you schedule jobs to run the delta accruals settlement periodically. You may also use this settlement date type to update accruals after contractual changes, for example, if the settlement or accrual condition rate has changed.

    ____________________________________

    Anjikumar Pasumarthy, you said "When a Rebate agreement (Condition Contract) is created, accruals are determined using REA1 condition type in the billing document. And accrual entries are posted when the accounting document is created for a billing document."

    That's partially true and that's definitely not the solution recommended by SAP.

    SAP recommend that the accrual is posted at the time of Delta accrual Settlement document (not directly in the billing document). In this way, you can use the new features of condition contract to allow you to create accruals and rebates retroactively + accumulated form, as it's out of the billing doc or invoice.

    The accrual can be posted from condition type REA1 or RES1 (for Sales rebates) during the delta accrual because of the functionality of "Condition Exclusion". System will compare both conditions and deactivate the lowest (as per standard configuration).

    Thanks,

    Gauthier V.

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