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Why We are Doing Accrual and Deferral in SAP?

Updated May 19, 2018

Hello Experts,

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.


  • 17 Sep 2015 10:29 am Romil Tripathi Helpful Answer

    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.

  • 17 Sep 2015 10:34 am Rohit Mahajan Helpful Answer

    Thanks for your comment. I understand your explanation but can you please give me a example so that I can better understand.