SAP FI CO (Financial Accounting & Controlling)
SAP FI CO (Financial Accounting & Controlling) Forum
May I know that why we are doing accrual and deferral in SAP? And what is the main reason behind this?
Please clarify with example as soon as possible.
Thanks in advance.
Accrual refers to Income/Expenses earned/incurred but have not been paid, while in deferral the income/expenses are paid in advance for the services given or used in a period of time ahead, the same concept is applied in sap and the amount that is actually to be paid or received is debited/credit in the current month and the rest amount is reversed next day, the concept of running this program is same as on a day of the month 1500 debited on A+1 day 1000 reversed, 500 utilized as accrual.
Thanks for your comment. I understand your explanation but can you please give me a example so that I can better understand.
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