Business context and overview 

• As soon as there are liabilities to a third party, for example to a supplier,  

but the related costs have not yet been posted, accruals need to be  

posted. 

• By posting accruals in the system, the relevant costs are allocated to  

the fiscal period in which they occurred. 

• The posting of accruals is typically a period-end closing activity  

because it is often not known until period end to what extent accruals  

are required.  

Optional Extension: Accruals for Purchasing to Stock or Fixed Asset 

Default behavior: Accruals are only generated for purchase orders that involve cost assignments (such as cost centers or internal orders), not for those that go into material stock or fixed assets. 

Exception: It is possible to enable accruals for purchase orders that post to material stock or fixed assets. This requires implementing specific Business Add-Ins (BAdIs). 

Guidance: For technical details and sample source code for the BAdI implementations, refer to consulting note 2888110 – “Enable accruals for purchase orders to stock”. 

 

Overview: Features 

With  the new Purchase Order Accruals application: 

• Automatically calculate and post purchase order accruals. 

• Built on the new SAP S/4HANA Accrual Engine, offering flexible customization for accrual calculation and posting. 

Key features: 

• ** optional review/approval process:** Activate through Customizing to review and approve monthly accrual amounts. 

• Monitoring and review screens: Available for SAP GUI in release 1809, with Fiori apps planned for release 1909. 

• Cloud availability: Purchase order accruals available in SAP S/4HANA Cloud 1811. 

Basic Principle 

At the end of each fiscal period, the Purchase Order Accruals application performs the following: 

• Calculates accrual amounts for purchase order items by evaluating planned data, such as: 

• Delivery schedules with planned delivery dates, determining cumulated planned costs up to the period's end. 

• Other data like non-valuated goods receipts. 

• Assumes that cumulated planned costs reflect actual costs at the period's end. 

• If cumulated actual costs are less than planned, the system proposes the difference as the accrual amount. 

• Activates a review process by default, as the proposed accrual amount is assumption-based. This review process can be configured to examine: 

• Proposed accrual amounts. 

• Planned costs. 

Fine-Grained Posting of Accruals: Audit-Save 

 

The Purchase Order Accruals application operates with precision: 

• Calculates, reviews, and posts accruals at the detailed level of individual purchase order items. 

• Aims to determine accrual amounts in a reliable, reproducible, and audit-compliant manner. 

Alternative approach: 

• Estimate accrual amounts based on historical data. 

• While applicable in some cases, this method generally produces unreliable results. 

Main Process Steps 

Purchase Order Accruals Process: 

1. Creation of Purchase Order 

• Create purchase orders using transaction ME21N in MM-PUR. 

• Each purchase order is automatically transferred to the Accrual Engine based on Customizing settings. 

• Initial Data Load: Transfer existing purchase orders using transaction POAC_MM2ACE_TRANSFER. 

2. Display Accrual Objects 

• View monthly accrual amounts calculated by the system using transaction POACTREE03. 
•  

3. Optional Review and Approval Process 

• At the end of each fiscal period, a reviewer can adjust proposed accrual amounts or planned costs. 

• Generate proposal amounts using transaction ACEPROPOSALRUN. 

• Review: Perform using transactions FACRARVWBU (for PO owners) or FACRARVWCO (for controllers). Manual adjustments are possible. 

• Approval: Perform using transaction FACRAAPPRVGL. Approval is mandatory for accrual postings if activated.

4.Post Accruals 

• Post accrual amounts at the end of each fiscal period using transaction ACEPOSTINGRUN.

Purchase Order Accruals: Architecture Big Picture 

 

Use-Cases for Accruals: PO Item Without Valuated GR 

 

1. Without Goods Receipts 

• No goods receipts recorded. 

• Accruals proposed based on: 

1. Delivery schedule in the purchase order item (past deliveries assumed as received). 

1. Straight-line approach (linear distribution of total PO item value).

    

    
2. With Non-Valuated Goods Receipts 

• Quantity received is recorded, but no costs posted. 

• Accruals proposed based on recorded quantity multiplied by net price (use accrual method PLN_DSNVGR). 

• Note for Enhanced Limit PO items: Use Expected Value for linearization. 

3.With Valuated Goods Receipt Postings 

• Goods receipt posts costs as entered quantity multiplied by net price. 

• Accruals proposed based on delivery schedule (past deliveries assumed as received), considering posted costs. 

4. With Service Entry Sheet Postings 

• Service entry sheet posts costs similarly to valuated goods receipt. 

• Accruals proposed based on straight-line approach (linear distribution between start and end dates). 

• Note: Start and end dates visible for Lean Services approach (Product Type Group 2 “Service”). 

Relation to Accruals Management 

• The application Purchase Order Accruals is part of the bigger application Accruals Management. 

• Accruals Management bundles all applications that are based on the (new) S/4HANA Accrual Engine. 

• The long-term vision of Accruals Management is to be the single point of entry for managing accruals. 

 

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