Accruals & Deferrals
An accrual is any expenditure before the closing key date that represents an expense for any period after this date. For example, RNB or Accrual bonus.
The transaction entires of accrual is
Month 1, 2, 3, …
Dr. Expense
Cr. Accrual BonusMonth 12
Dr. Accrual Bonus
Cr. Cash
Deferred income is any receipts before the closing key date that represent revenue for any period after this date.
For example.. Our company lend interco some money. Interest will be occurred every month but we don’t get it until the last month of year. We have to record deferral every month.
The transaction entires of deferral is
Dr. Deferral Interest (AR)
Cr. RevenueAt the last month
Dr. Cash
Cr. Deferral Interest
See useful SAP books:
SAP Books
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