Purchase Order Accruals: Define Accrual Methods

1. Accrual Item Type
• The accrual item type determines which amounts are subject to accrual and whether full or delta postings should be applied.
2. Accrual Calculation Logic
• The accrual item type does not define the algorithm for calculating accrual amounts per period. Instead, this logic is specified in a separate Customizing entity called the accrual method.
3. Accrual Method as an ABAP Class Method
• An accrual method functions similarly to an ABAP class method. Each accrual method is linked to a specific ABAP class method or function module, where the accrual calculation algorithm is implemented.
4. Default Accrual Methods
• SAP provides the most commonly used accrual algorithms as standard Customizing content.
5. Custom Accrual Methods
• Customers can develop their own accrual methods by creating an ABAP class that implements the interface IF_ACE_CFG_METHOD.

Purchase Order Accruals: SAP-Delivered Accrual Methods

SAP provides several default accrual methods as part of its standard customizing content. These methods serve different purposes:

1. Accrual Methods for Planned Costs Some accrual methods are designed to calculate and distribute planned costs for a purchase order item over its lifecycle. The chosen method determines how these costs are allocated across fiscal periods, directly impacting the accrual amounts posted in each period.
2. Technical Accrual Methods Other methods, such as ZERO_AMNT, DERIVED, and PLN-ACT, are used for technical purposes. For example:
• If an accrual item becomes obsolete (e.g., due to the deletion of a purchase order item), the Accrual Engine automatically assigns the ZERO_AMNT method. This ensures that in the next accrual posting run, the accrual amount is reset to zero.

Accrual Engine: Calculation of Periodic Accrual Amounts

Key Principles

• Under IFRS, accruals may be posted when there is a potential debt to an external legal entity (e.g., a supplier).
• The logic for determining this debt and the related accrual amount is use-case specific.
• The Accrual Engine supports all potential algorithms, allowing for:
• Custom accrual methods via ABAP class methods (configurable in Customizing).
• Customer-defined algorithms in addition to SAP’s default settings.

Standard Accrual Calculation Process

The Accrual Engine follows a three-step approach to calculate accruals:

1. Determine Planned and Actual Costs
• Planned Costs: The amount of goods/services received up to a key date.
• Example: For a purchase order item, the system uses the delivery schedule to estimate received quantities.
• These amounts are stored as Planned Costs in the Accrual Engine.
• Actual Costs: The amount already posted (e.g., supplier invoices for non-valuated goods receipts).
• The system selects all invoices with a posting date before the key date.
• These amounts are stored as Actual Costs in the Accrual Engine.
2. Calculate the Accrual Amount
• The system computes the difference: Accrual Amount = Planned Costs – Actual Costs
• If the result is greater than zero, it represents the debt to the supplier.
• The accrual amount is stored as Accruals (ACCRL) in the Accrual Engine.

Purchase Order Accruals: Calculation of Periodic Accrual Amounts

The Purchase Orders Accruals application is built on the Accrual Engine, which provides flexibility in accrual calculations while offering specialized features for a three-step accrual approach.

Key Features of the Accrual Engine

• Supports a wide range of accrual calculation algorithms.
• Includes tailored functionalities for the three-step accrual method, which involves:
1. First Step: The Accrual Engine computes:
• Planned Costs (expected expenses)
• Actual Costs (recorded expenses)
2. Second Step: The accrual amount is determined by subtracting Actual Costs from Planned Costs.
• If the result is negative, it is set to zero (since accruals cannot be negative from a business perspective).

• Optional: Additional accrual item types may be included (e.g., parked invoices for further analysis).

Exclusive Features for the Three-Step Approach

• Period-End Closing Transaction for Review/Approval:
• Allows reviewers/approvers to adjust accrual amounts.
• Displays three key columns:
• Planned Costs
• Actual Costs
• Accrual Amount
• Note: The Planned Costs and Actual Costs columns are only populated when using the three-step method.
• User-Friendly Accrual Object Display (e.g., Transaction POACTREE03):
• Automatically presents Planned Costs, Actual Costs, and Accrual Amounts in a consolidated table for easy comparison.

 

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