Accrual Engine

Assign Company Codes

Use In this IMG activity, you have to assign to the Accrual Engine those company codes in which you want to calculate and post accruals. This setting is required, as company codes cannot be transferred directly from Customizing for the enterprise structure. Activities For your application component, enter all company codes in which you want to calculate and post accruals.

Define Accounting Principles

Use In this activity, you define your accounting principles. You have to make this setting if you want to depict a parallel valuation method in an additional ledger. You then assign accounting principles to the ledgers to which the postings are made. Note For performance reasons, you can combine several different accounting principles in one entry; for example, you create one accounting principle for IAS/US GAAP. This can be useful if, in an application, you have to create the data for each accounting principle, even if the postings derived from the data are identical for each accounting principle. If, for example, you reflect both IAS and US GAAP in your system, in the application Manual Accruals, you have to create one accrual item for each accounting principle. However, the accruals are identical for IAS and US GAAP. You therefore only have to create one accounting principle in the system, for example IAS/US GAAP for Accruals. Caution The accounting principles that you have defined are available in various functions in Financial Accounting, such as in the report for foreign currency valuation, in Manual Accruals and in Provisions for Awards. SAP therefore advises you not to delete accounting principles. This is particularly important in the case of accounting principles that have already been used. Activities 1. Enter a four-digit key in the Accounting Principle field. 2. In the Description field, enter a description for your accounting principle. 3. Save your accounting principle.

Assign Accounting Principle to Company Code

Use In this IMG activity, you assign the relevant accounting principle(s) to the company codes that use the Accrual Engine.

Each time an accrual object is created, the system checks whether the entered company code/accounting principle combination is permitted. This setting is necessary in order to guarantee that the authorization check is carried out at the company code and accounting principle level. For example, it is important to ensure that a German account has authorization to carry out an accrual run for his/her local accounting principle only. Meanwhile, the group accountant should also be able to carry out the accrual run in the group accounting principle (such as GAAP). Activities Assign the relevant accounting principles to the company codes. Example In company code 0001 (USA), you want to allow accounting principles GAAP and IAS. You therefore create the following combinations:

Company code 0001 / Accounting principle GAAP Company code 0001 / Accounting principle IAS

Define Accrual Types

Use In this IMG activity, you define the accrual types that you require. If you want to perform all postings provided for by the system for an accrual type, the system makes the following postings:

Opening entry With an opening entry, the entire amount to be accrued is posted as the value. Account determination is normally set in such a way that the entire amount to be accrued is posted to an accruals account. Periodic postings When periodic accrual is started, the accrual amount that is due at the key date is calculated and posted. Account determination is normally set in such a way that the posting is made from the accruals account to a profit and loss account. Closing entry A closing entry is only made if the accrual object has been deactivated, even if all accruals have not yet been posted. The amount that has not yet been accrued at the time of deactivation is posted as a deactivation amount.

Activities 1. Choose New Entries. 2. In the AccrualType field, enter a text for your accrual type, such as COSTS. 3. You can create a derived accrual type. To do this, set the derived flag. By setting this flag, you specify that this accrual type is to be calculated from other accrual types, for example as the difference between or sum of these other accrual types. You then define the

calculation rule that defines how this accrual type is to be calculated from other accrual types. You do this in Customizing, under Derived Accrual Types. 4. Specify which postings you want to be made for this accrual type: o None For this accrual type, the amounts to be accrued are calculated but no corresponding postings are made. All An opening entry, the periodic posting and a closing entry are all posted. Periodic only Only periodic postings are made. No opening or closing entries are posted. Opening entry only

o o o

Only the opening entry is posted. 5. In the Description field, enter a more detailed description for your accrual type. 6. Save your accrual type.

Define Operators for Derived Accrual Types

Use In this IMG activity, you can define the operators for derived accrual types. An operator specifies how the accrual values of a derived accrual type are calculated from the values of the referenced accrual type, for example Operator + for adding or - for subtraction. Requirements You must have already created you accrual types in the IMG activity Define Accrual Types. Standard settings SAP delivers standard predefined operators. If the predefined operators do not meet your requirements for calculation of derived accrual types, you can create your own operators. Activities To create a new operator, proceed as follows: 1. In the operator field, enter a one-digit key for your operator. 2. Enter a text for your operator. 3. Save your operator.

Assign Operators to Function Modules

Use In this IMG activity, you can assign a function module to an operator for a derived accrual type. This function module contains a description of how your operator works. You have the option of using SAP function module ACE_DS_OPN_ADD as a template. Note

The function module must have a defined interface. Requirements You must already have created your operator in IMG activity Define Operators for Derived Accrual types. Activities To assign a function module to your operator, proceed as follows: 1. Enter the key for your operator. 2. Enter the name of the function module. 3. Save the assignment.

Define Calculation Guidelines for Derived Accrual Types

Use In this activity, you define the calculation rule that you want the system to use to determine the accrual values for derived accrual types. In this calculation rule, you can also use the operators that you have defined. Requirements You must have already created you accrual types in the IMG activity Define Accrual Types. Activities 1. Choose New Entries. 2. Make the following settings: o In the Accrual Type field, enter the derived accrual type for which you want to define the calculation rule.

o o o o o

Enter the required accounting principle for the derived accrual type. Enter the sort number. Enter an operator, such as Add, according to which you want the accrual values to be determined. Enter the referenced accrual type from which you want the derived accrual type to be determined. Enter the referenced accounting principle for the referenced accrual type.

3. Save your calculation rule. Example In this example, you calculate and post your accruals according to just one country-specific accounting principle (01). When you create an accrual object, you can choose between the following accrual types:

RVNUES (revenues) COSTS

You also want to accrue the profit using the formula PROFIT = RVNUES - COSTS. To do this, you have to make the following settings. 1. In IMG activity Define Accrual Types, create an additional accrual type PROFIT. The operators Add and Subtract are provided by SAP in the standard system. 2. Create a calculation rule for adding the revenues with the following entries: o Accrual type: PROFIT

o o o o o

Accounting principle: 01 Sort number: 1 Operator: Add Referenced accrual type: RVNUES Referenced accounting principle: 01

3. Create a calculation rule for subtracting the costs with the following entries: o Accrual type: PROFIT

o o o o o

Accounting principle: 01 Sort number: 2 Operator: Subtract Referenced accrual type: COSTS Referenced accounting principle: 01

In Accrual Engine Reporting, accrual type PROFIT is then taken into account if all referenced accrual types necessary for the calculation are available. This means, for example, that the accrual type PROFIT is considered provided that the referenced accrual types RVNUES and COSTS are available. If accrual type PROFIT is marked as To Be Posted, the value determined is posted during the periodic accrual run.

Set Percentage Rates for Operator P

Use In this IMG activity, you can define which percentage you want to use for the derived accrual type P (percentage). Note However, you only need to make this setting if you use derived accrual types and use derived accrual type P in your calculation rules. Activities

1. Choose New Entries. 2. Enter the company code for which you want to define the percentage. 3. Enter the percentage you have chosen. 4. Save your settings. Example In this example, you calculate and post your accruals according to just one country-specific accounting principle (01). You want to accrue costs (accrual type COSTS). In addition to the costs, you also want to accrue the interest for this amount. To do this, you have to make the following settings. 1. In IMG activity Define Accrual Types, create an additional accrual type INTRST (interest). 2. In IMG activity Define Calculation Rule for Derived Accrual Types make the following entries for accrual type INTRST. o Accrual type: INTRST

o o o o o

Accounting principle: 01 Sort number: 1 Operator: Percentage Referenced accrual type: COSTS Referenced accounting principle: 01

3. Now define the chosen percentage in this IMG activity.

Open Fiscal Year for Accrual Postings

Use In this IMG activity, you specify for your individual company codes which fiscal years are to be open for changes to accrual objects and for accrual postings. Activities 1. Enter the required company code. 2. Make the following settings for the fiscal year: o Completed fiscal year Enter the most recent completed fiscal year. No more changes can be made to accrual objects in a fiscal year that is already completed. However, you can perform periodic accrual postings in closed fiscal years. Fiscal years are closed for accrual postings using the period lock in Financial Accounting at the account level. Current fiscal year The system finds the current fiscal year automatically if the balance has been carried forward in the Accrual Engine. Periodic accrual postings can only be made in the current fiscal year or in previous years, but not in future fiscal years.