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Best practice for posting accruals to payable invoices

Jan 09 at 10:15 AM

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Hallo,

I'd like to ask for advice: what is the common or best practice for posting accruals to payable invoices? I have a purchase order for an item, assigned to internal order with budget control --> it creates obligo, budget is spent. But the invoice (which is relevant for accounting - not the receipt note) is not delivered yet, and accountants want to post accruals to this item. I have found out two ways how to solve it:

1) switch off the budget control in KO32, post the accruals (and use the same internal order), and switch the budget control on again in KO31. Disadvantage is that controllers report budget overrun, although it only is temporary.

2) post the accruals to another "dummy" internal order which is dedicated for this purpose only and collects all accrued costs.

Please, is this common way how to do it? Which option is better or is there any other method how to do it?

Many thanks in advance,

Jaroslav Trnka

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2 Answers

Tammy Powlas
Jan 09 at 10:49 AM
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OK, the budget option seems strange to me.

Some questions - what types of invoices are these? Because if they are invoices with goods receipt, the liability is recognized at goods receipt, so there is no need for an invoice accrual.

Maybe you could some more background on the types of expenses you are posting?

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Jaroslav Trnka Jan 09 at 01:24 PM
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Hello Tammy,

thank you for your prompt reaction;-)
There are no goods receipts in this case, as the subject of PO is a service, e.g. IT consultancy, IT development or so. The only "event" is an invoice. The PO item is assigned to an internal order; expenses are of two types: 1) OPEX - internal order is settled to a cost center 2) CAPEX - internal order is settled to Asset-under-Construction. Accruals are to be posted in case that service was delivered before the accnt. closing date but there is no invoice yet. "Delivered" = we confirmed the delivery = we signed a confirmation document, but it has no record in SAP R/3.

Thank you. Jaroslav

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